Kind advice required regarding sale of a personal digital asset.

Unsure100

Hello everybody.  

Apologies if this is being posted to a wrong section of the forum, first time poster here.

I have been on UC for a couple of years now and also claim carers allowance for caring after my mother.  I have a question in relation to the sale of a digital personal asset to a international friend living in Dubai.  I have worked for 25 + years in the chemical industry and have chemical formulations which this person is intersted in buying off of me.

The sum in question is for 3000 Gbp which would be paid as a direct transfer into my bank account once he is in receipt of the digital formulation.  I have checked with a financial advisor and capital gains tax would not be an issue as it is does not surpass the threshold allowance for the 2024-2025 tax year.  

It should also not affect carers allowance as the sum broken down would not pass the allowed weekly earnings threshold for the year.  As far as I know the sum would also not push me over my yearly tax exempt allowance of 12574 Gbp either.

As far as I can tell, the only issue I can potentially see would be with universal credit.  I am unsure how this would be affected or if I have to report it in anyway should I go through with the sale.

The amount is small enough that I would only proceed with the sale if it does not affect or impact things in any significant way.  It would simply not be worth having to register for self assessment, possible Vat or to take a financial hit in any way from deductions to UC not to mention a real hassle for such a small amount which I am doing as more of a courtesy than anything else.  I certainly do not want to land in hot water or have to fight the powers that be over such an amount.

There is very little information online that I can find when it comes to the sale of a personal digital asset to somebody internationally and how it would affect things.  

Is there anybody knowledgeable who could advise?

poppy123456

Selling personal items is not treated as earnings. It will be treated as capital. If your total capital is less than £6,000 after that sale then there’s no affect on your UC.

For Carers allowance, it’s not treated as earned income.