Last updated: 14 October 2026
Do you have to report money from selling CDs or other second-hand items?
Not usually. Selling your own unwanted possessions, such as old CDs, records, books or clothes, is not trading, so there’s no income tax to pay and nothing to report. You only need to tell HMRC if you buy items to resell, make things to sell, or sell regularly with a view to profit. Even then, the £1,000 trading allowance means you don’t need to report gross sales of £1,000 or less a year.
Clearing out or trading?
HMRC uses the “badges of trade” to decide whether you’re trading:
| Factor | Points to trading | Points to clearing out |
| Why you bought the items | To sell for profit | For personal use |
| How often you sell | Regularly, systematically | One-off or occasional |
| Repairs or improvements | Done to boost sale price | None |
| How you sell | Like a business, with stock | Personal listings |
| How long you owned it | Short time | Many years |
Platform reporting
Since January 2024, online platforms such as eBay, Vinted and Etsy report sellers’ details to HMRC if they make 30 or more sales or receive about £1,700 or more in a calendar year. Being reported doesn’t mean you owe tax. If you’re just selling personal items, you don’t need to do anything, but keep a note in case HMRC asks.
Capital gains on valuable items
Most CDs and everyday possessions sell for less than you paid, so there’s no gain. Valuable collectibles, such as rare vinyl, are “chattels”. A chattel sold for £6,000 or less is exempt from CGT. Above that, gains may be taxable after the £3,000 annual exempt amount.
Example
Liam sells 400 of his old CDs on an online marketplace over 2026 for £1,900. He bought them over 20 years for personal listening. This isn’t trading, so he has no tax to pay. The platform reports his sales to HMRC, and he keeps a note explaining they were his own collection. His friend Ben buys job-lot CDs at car boot sales and resells them for £6,000 a year with a £2,500 profit. Ben is trading and must register for Self Assessment.
If you are trading
- Register for Self Assessment by 5 October after the tax year
- Report sales and deduct costs, or claim the £1,000 trading allowance instead
- Pay income tax and, above £12,570 of profits, Class 4 NIC
Common mistakes
- Panicking about platform reports when only selling personal items
- Ignoring regular resale profits because each sale is small
- Claiming both trading allowance and expenses
- Forgetting CGT on high-value collectibles over £6,000
Records to keep
Keep a simple log of what you sold, when and for how much, plus any purchase receipts if you’re reselling.
Selling for friends and family
If you sell items on behalf of other people, the money is theirs, not yours. Keep a note of whose items you sold, as platform reports to HMRC will show the total under your name.
Frequently asked questions
Is selling on Vinted taxable?
Only if you’re trading.
Will HMRC send me a letter?
Possibly a nudge letter; reply explaining your position.
Does the trading allowance cover me?
Yes, if gross trading income is £1,000 or less.
What about selling my car?
Cars are exempt from CGT.
Related: whether you need a tax return, side hustles alongside a job and starting a side business.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with online selling income. See our sole trader accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
