Pre-owned asset tax ― excluded transactions and exemptions

Produced by a Tolley Personal Tax expert

Personal Tax

Guidance

This guidance note considers the exclusions, exemptions and de-minimis limits for pre-owned asset tax (POAT).

For discussion of the regime generally, see the Pre-owned asset tax overview guidance note.

Excluded transactions

If a transaction qualifies as an excluded transaction it cannot fall within the POAT. By contrast, where POAT applies, it may still be covered by an exemption.

Excluded transactions are not relevant to the charge to pre-owned asset tax in respect of intangible property.

No charge to pre-owned assets tax can arise in respect of land or chattels if:

•
the disposal condition would otherwise be met but the transaction whereby the chargeable person disposed of their interest in the asset was an ‘excluded transaction’, or
•
the contribution condition would otherwise be met but for the fact that the chargeable person provided the consideration given by another person for the acquisition of the asset by means of an ‘excluded transaction’

FA 2004, Sch 15, para 10; IHTM44030

See the Pre-owned land and Pre-owned chattels guidance notes for full details

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