Incorrect. You pay tax on any gains. If you bought a watch for
personal
use for £300 and sold it later for £500 you would be liable for tax on
the
£200 difference. The chances are though that most things bought new
and
later sold are not likely to be sold for more than you paid for them.


Better make that a watch bought for £30,000 and sold for £50,000 given
the chattels limit. To quote from the SA helpsheet
http://www.hmrc.gov.uk/helpsheets/IR293.pdf

"You do not need to calculate any gain on the disposal of any single
chattel if the disposal proceeds did not exceed £6,000."

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|Robin