Pre-owned chattels

Produced by a Tolley Personal Tax expert

Personal Tax

Guidance

This guidance note considers the pre-owed asset tax (POAT) as it applies to chattels, where an individual has made a gift, or funded the purchase of a chattel, from which they now benefit. It applies to disposals since March 1986.

Chattels include, for example, paintings, antiques, furniture, vehicles, boats, racehorses, jewellery, musical instruments, computers, wines and spirits and collectible items.

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

Chattels are defined as ‘any tangible moveable property (or, in Scotland, corporeal moveable property) other than money’.

The conditions

The residence and domicile conditions

In order for pre-owned asset tax (also known as POAT) to apply to the individual for any tax year, they must be resident in the UK during that year, see the Residence ― overview guidance note.

Where the individual is UK resident but is domiciled outside the UK (before 6 April 2025), or is UK resident but is not a long-term UK resident (6 April 2025 onwards), the pre-owned asset tax applies only if the asset is situated in the UK.

Before

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