Non-wasting chattels
In this lesson, you'll learn how the £6,000 non-wasting chattels rule affects your chargeable gains and losses calculations for taxation purposes. This special rule applies whenever either the cost or proceeds of a chattel fall below £6,000, and it's crucial for getting tax computations right in your TX or ATX exams.
This lesson is part of a paid course
Buy the course to unlock every video lesson and the AI Tutor, plus mock exams with feedback on CIMA courses.
Already bought? Sign in
Ask the AI tutor anything about this lesson
It knows every lesson in the course — explanations, clarifications, practice questions.
In this lesson
- 0:00 Non-wasting chattels and the £6,000 rule
- 0:23 Four scenarios for calculating chargeable gains
- 1:51 Summary table for quick reference
About this lesson
The core principle is fairness: gains are exempt when both cost and proceeds are under £6,000, but once proceeds exceed £6,000, any gain is capped using the formula 5/3 × (gross proceeds − £6,000). Similarly, losses are restricted when cost exceeds £6,000 but proceeds don't, using deemed proceeds of £6,000 instead. When both exceed £6,000, you calculate gain or loss normally. The video walks you through a clear decision table covering all four scenarios, making it straightforward to spot when the rule applies and which calculation method to use. You'll recognise these questions instantly because the figures will always trigger the £6,000 threshold — making this one of the most predictable rules in your taxation toolkit.
Duration: 3m
Transcript
Every lesson comes with a full searchable transcript - included with the course.
Get the Taxation course
All 192 video lessons, an AI Tutor in every lesson and lifetime access.
Already bought? Sign in