If you were lucky enough to be chosen to be a torch bearer, then you may be interested to hear the tax implications of selling your Olympic torch.
If you sell your Olympic torch for more than £6,000 then the disposal will be treated as a chargeable gain. Therefore, you may need to pay capital gains tax (CGT) depending on whether you have any other gains in the tax year. The personal exemption limit for capital gains for 2012/13 is £10,600.
If the torch is sold for less than £6,000 then you will not be chargeable to CGT on your proceeds and as long as the disposal is not considered as part of a trade then there will be no other tax implications. Generally people who sell a few personal items for cash are not considered as trading. However if it was considered part of a trade then the profit on the disposal would be charged to income tax rather that CGT.
Charity implications
If you do incur CGT on the disposal of your torch then there is no exemption from CGT even if you donate the money you receive on selling the torch to charity. Depending on your tax circumstances donations of money to charities under gift aid will enable the charity to reclaim £25 from HMRC for every £100 donated.
If you give the torch to charity for them to keep or sell themselves then there is no charge to CGT.
For full details on tax implications see HM Revenue & Customs: Selling your Olympic torch.
Please contact us for further advice.