Capital gains fears

I agree that the application of capital gains tax to any profit generated from selling our beloved classics would have an effect on the industry (Quentin Willson, The Insiders, February 2021).

However, it would, I hope, only be applied to the profit over and above the cost of any restoration and maintenance cost for the car. For anyone buying a car to either flip it for a profit or to buy just to restore it and then sell it on for a profit, I think a tax on this would be appropriate.

Only genuine enthusiasts restore and keep them and they do not worry about any profit gained over the years. I can speak from experience in that I have only ever sold a classic after years of ownership and expense, and I have only recouped the money spent – or less in some instances – when I came to sell it.

Steve Richardson I think that applying capital gains tax on classic cars could have a devastating effect on owners wishing to change their classic once in a while and it may put them off entirely. Any rise in the value of a classic helps lock the owner into the market, for better or worse, in the same way that it works with housing. If that gain were taxed as profit each time an enthusiast sold and bought again, their spending power would reduce drastically with each transaction. Phil Bell