Non declared revenue limit

Stickjesus

A while back I remember seeing something about legally not having to declare income up to a certain limit. This is for things such as sales at a car boot sale and odd personal sales.

Am I just dreaming this or is this a thing?
If so what is the limit and can I have the official name for this?

Geuze

There is no such thing.

All income is taxable.

dogsears

Stickjesus wrote: »

A while back I remember seeing something about legally not having to declare income up to a certain limit. This is for things such as sales at a car boot sale and odd personal sales.

Am I just dreaming this or is this a thing?
If so what is the limit and can I have the official name for this?

You might have been thinking about an exemption that existed for people on a very low income. It covered total income, not just incidental income that a person had from sideline activities. Anyway it was abolished from 2008.

There is still a similar thing for elderly people whose income is below a certain limit, but I doubt that's what you're asking about.

Valetta

Geuze wrote: »

There is no such thing.

All income is taxable.

Definitely not true.

http://www.revenue.ie/en/tax/it/reliefs/exempt-income.html

relax carry on

Valetta wrote: »

Definitely not true.

http://www.revenue.ie/en/tax/it/reliefs/exempt-income.html

Should be the vast majority of income is taxable with some exemptions you must claim. You must declare all income.

adrianw

Perhaps the op is thinking of the €1,270 annual CGT exemption. If he/she is selling items at a car boot sale it wouldn't be classified as a trade and any 'profit' would be subject to CGT and not income tax?

barneystinson

adrianw wrote: »

Perhaps the op is thinking of the €1,270 annual CGT exemption. If he/she is selling items at a car boot sale it wouldn't be classified as a trade and any 'profit' would be subject to CGT and not income tax?

What makes you think that CGT would apply?

adrianw

It was purely a suggestion as he/she said they would be selling items at a car boot sale and other personal items - therefore i assume items not bought in the course of a business venture.
Also as they mentioned they heard of a minimum threshold, i think it is safe to assume the monetary amount derived will not be very high / frequent.
So most likely badges of trade would not deem it to be a trading activity.

Geniass

barneystinson wrote: »

What makes you think that CGT would apply?

I think he means CGT rules.

Do all disposals of assets give rise to CGT liability?

No, not all disposals (of assets) give rise to a charge of CGT. For example, any gains arising in the following circumstances are not regarded as giving rise to chargeable gains and hence are not liable to CGT
Gains from the disposal of Governmental Stocks and Securities.
Gains from the disposal of tangible movable property, where the amount or value of the consideration does not exceed €2,540.
Gains from the disposal of wasting assets, i.e. assets with a predictable life of less than 50 years, for example, a private motorcar, livestock etc.
Gains from the disposal of your principal private residence.
Prize Bond, Lottery and Gaming winnings.

barneystinson

Geniass wrote: »

I think he means CGT rules.

Yeah, I know what he means, but I don't understand why!

Geniass

barneystinson wrote: »

Yeah, I know what he means, but I don't understand why!

See above Ninja edit!

Geuze

Valetta wrote: »

Definitely not true.

http://www.revenue.ie/en/tax/it/reliefs/exempt-income.html

Okay, I should have said "all income is declarable, and may be taxed, subject to exemptions, allowances and tax credits"

seamus

Yeah, CGT is really the only thing I can think of here.

CGT is not chargeable on the disposal or personal possessions up to the value of €2,540 per transaction.

Also "wasting chattels" (i.e. things that lose value over time) are completely exempt from CGT, including cars, computers, etc.

You do need though to watch the fine line between incidental disposals and trading. If you're buying things with the intention of reselling them, then you would likely be considered to be trading, even if it is just a few hundred euro every other weekend at car boot sales.

Whereas buying something, using it and then selling it at a car boot sale would be considered a disposal.

Stickjesus

Thanks to everyone who replied. The CGT 2540 should cover me.