Published 4 February 2026
The chattel rule, in one paragraph
Jewellery is a "chattel", a tangible movable personal possession, for UK Capital Gains Tax purposes. Each chattel disposed of for £6,000 or less per item is generally exempt from CGT. For disposals above £6,000, marginal relief limits the chargeable gain to five-thirds of the excess over £6,000, which often results in a smaller chargeable amount than the headline gain. Above the annual CGT allowance, the chargeable gain is taxable at the applicable CGT rate.
When sets matter
HMRC anti-avoidance rules treat connected disposals of items that form a "set", such as matching earrings and a necklace from the same designer, as a single chattel, so the £6,000 limit applies to the set as a whole rather than each item. This stops splitting a high-value set across separate sales to repeat the exemption.
Inherited jewellery and base cost
For inherited items, the CGT base cost is generally the probate value at the date of death, not the original purchase price. If the eventual sale price is below the probate value, there is no gain at all; if above, ordinary chattel and allowance rules apply. This is part of why a proper probate valuation matters at the time the estate is administered.
A practical checklist
- Keep the written, itemised valuation from the sale. It is the cleanest record.
- Know the base cost: purchase price if you bought it, probate value if you inherited it.
- For items potentially over £6,000, get tax advice before disposing.
- Treat matching sets as one chattel rather than several.
- Use the current HMRC annual CGT allowance figure, not a remembered one.
Common questions
Is a wedding ring CGT-exempt?
If it is sold for £6,000 or less, generally yes. It falls under the chattel exemption. The same applies to most household jewellery.
What counts as a "set" for CGT?
Matching items intended to be used or worn together, a necklace and earrings as a suite, a tea service, a flatware canteen. HMRC has specific guidance on connected disposals.
Does the £6,000 figure ever change?
The current chattel exemption sits at £6,000 per item but figures are set by Government and can change, confirm the current threshold on the HMRC website before relying on it for a material sale.