What are the rules of sale or transfer of equipment

Farm Money Advice: What's involved when buying or selling machinery

Understanding the rules can help avoid unnecessary tax bills. Picture: iStock

Understanding the tax rules that apply to the sale and transfer of equipment can help avoid a lot of headaches and unnecessary tax bills.

Firstly, while it might seem obvious, it is nonetheless worth outlining that the sale of personal equipment which has not been used for trading (or rental) purposes is not subject to income tax, and neither would such equipment be liable for capital gains tax under rules which deal with “wasting chattels” excluding commodities.