STOP PRESS: The remittance basis is abolished from 6 April 2025, although this only applies to foreign income and gains arising on or after that date. The remittance basis rules still apply to unremitted income and gains arising before that date but remitted later. The legislation is included in FA 2025. For more details, see the Abolition of the remittance basis from 2025/26 guidance note.
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