HM Revenue and Customs (HMRC) has reminded Britons to check the tax rules before selling unwanted Christmas gifts. While most people selling personal items do not need to pay tax, there are specific thresholds that could trigger liabilities.
In a message on social media platform X, HMRC stated: 'Unwanted Christmas gifts? If you plan to sell your own personal items, such as used clothes or an old TV, you don’t need to pay income tax on this.' The tax authority emphasised that occasional sales of personal belongings generally do not require notification to HMRC.
However, HMRC warned that side hustles and additional income streams are subject to different rules. Anyone earning more than £1,000 from such activities in a tax year must declare the income. 'Whether you get cash in hand or money paid straight to your bank account, you’ll need to tell HMRC so you can avoid any tax surprises,' the authority said.
The £1,000 threshold applies to gross earnings before expenses, not profit, and is separate from the personal allowance of £12,570. If total income exceeds the allowance, tax may be due on side hustles. For those earning £1,000 or less, no declaration is needed.
Additionally, sellers of high-value items may face Capital Gains Tax. HMRC noted: 'It’s only if you’ve sold a single personal item or collection for more than £6,000 that you need to tell us.' This applies to items that have increased in value since acquisition.
HMRC directed people to its website for full guidance, urging caution to avoid unexpected tax bills. Most casual sellers of unwanted gifts will not be affected, but the rules on side hustles and capital gains remain in force.
