25 May 2012
Press ReleasesOlympic torch bearers rushing to sell their torches on eBay could find they are greeted by the taxman at the finish line.
As the Olympic flame winds its way around the country, the iconic metre-long golden torches are appearing on the online auction site for offers in excess of £100,000, as those selected to take part in the relay seek to cash in.
However, torch bearers who gain personally from the astronomical prices being achieved are in for a surprise as the profits on the torches typically sold to the bearers by organisers LOCOG for between £199 and £215 might be liable to tax.
Stephen Barratt, private client director at accountants and business advisers James Cowper Kreston explained: “Subject to specific exemptions, profits on the sale of chattels are generally taxable to Capital Gains Tax unless they are wasting assets. Arguably an Olympic torch is a wasting asset but this does not mean that income tax is not payable; the Taxman might look for income tax on the profit if the torch was acquired with the intention to sell it. The Taxman is obtaining details of sales made via eBay so such transactions might well come to light.”
Stephen concludes: “Gifting the proceeds to charity will reduce the tax bill but it will not remove it altogether, so if the Taxman is waiting at the tape, advice should be sought.”
LOCOG have declared that the torches are the torchbearer's to do what they want with.
