Is There a Capital Gains Tax on Watches?

Capital Gains is a tax on the profit of the re-sale of a tangible or non-tangible asset.  It is worked out by subtracting the original cost of the asset from the final selling price, and a percentage of this profit, over a certain amount, is then payable. The percentage will be determined by the type of asset, how long you have owned it and your existing income.

 A current and comprehensive guide to the rules, exemptions and rates of taxation should be sought from HMRC https://www.gov.uk/capital-gains-tax  but prospective sellers may be put off the idea of disposing of assets if a substantial tax on any profit is imminent.

^{A Rolex Sea-Dweller Submariner 2000}

^{Sold for £31,500}

However, it is good to know that watches are an exception to the rule because they are regarded, along with machinery, as expected to have a lifespan of less than fifty years. Therefore, any gain on the disposal of a watch is exempt from Capital Gains Tax.

As a result there is a vibrant and enthusiastic market for pre-loved watches, not only for collectors, but because they are regarded as investment pieces. Brands such as Audemars Piguet, Rolex, and Patek Philippe can realise a significant return on investment, and can sometimes be said to outperform the stock market, especially when models are rare, interesting, and in excellent condition. For example, Audemars Piguet has such a limited output that only 40,000 – 50,000 watches are made by the firm every year, maintaining brand exclusivity and ensuring resale prices remain high.

^{A 1982 Rolex Oyster Perpetual Date Explorer II}

^{Sold for £25,000}

Dawsons have extensive experience selling luxury branded watches at auction. With over 20 years’ experience in fine watch sales our experts are ideally placed to accurately inspect and appraise your watch or watch collection. With a London valuation office in Hampstead and a purpose-built showroom in Maidenhead, if you are considering selling a luxury brand watch, our Valuers would be delighted to provide a complimentary valuation either in person or virtually, via video call.

Specialising in the sale of luxury timepieces, our experts market the provenance and condition of the watches to a global audience, in order to secure the best possible price at our international auctions. Recent success includes an Audemars Piguet Royal Oak Dual Time Tantalum which commanded £24,000 at a Dawsons’ Fine Jewellery, Silver and Watches sale in September 2024.

^{Patek Philippe Nautilus Automatic Steel & Gold Watch}

^{Sold for £19,000}

When one considers that investment pieces, family heirlooms, or simply luxury watches that you no longer love are exempt from Capital Gains Tax, it makes good financial sense to sell your watch through a reputable auction house such as Dawsons Auctioneers, who will be happy to help you at every step of the valuation, marketing and selling process.

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Are you thinking of selling a luxury branded watch?

With access to a global audience of over 10 million known bidders, Dawsons can secure the best prices.

Get in touch with an expert Valuer for confidential sales advice, we would be delighted to help you:

0207 431 9445 / info@dawsonsauctions.co.uk