A chattel is another name for a personal, physical possession or tangible good that is moveable between locations – e.g. a painting.
Jewellery, clothing and vehicles are all examples of chattels as these are all personal belongings which can be moved. More include:
We can definitely see where you’d confuse the two! But actually, an asset is something or even someone which is regarded as highly valuable. An asset, however, doesn’t have to take physical form – just look at Bitcoin!
Another difference between a chattel and an asset is that a chattel doesn’t have to be worth anything. They are usually solely for personal use rather than for investment purposes.
This is not to say your chattel cannot be worth a ton if you do one day decide to sell it – so you might want to hold onto that old Chinese porcelain set just in case!
If you’ve had a look at any of our Capital Gains Tax guides, then you probably have an inkling that disposing of a chattel may attract Capital Gains Tax (CGT). Whether you pay CGT solely depends on how much profit is made after the sale.