Taxes
When investing in bullion it is important to consider the Tax implications. We cannot offer Tax or Personal Investment advice or recommendations.
As we are a UK company, we offer some general information applicable to bullion investments in the UK with regards to VAT and CGT (Capital Gains Tax).
Other Countries, States and Principalities have their own individual Tax laws and requirements.
Before investing in bullion you should seek your own independent advice from an appropriately qualified adviser.
VAT
GOLD
Currently, investment Gold, including bullion bars and coins that are purchased in the UK and EU is exempt from VAT.
Since the 1st January 2000 there investment Gold has been exempt from VAT, to fall in line with the EC Council Directive 98/80 EC, harmonising regulations between the UK and the rest of the EU.
Investment gold is either:
(a) gold of a purity not less than 995 thousandths that is in the form of a bar, or a wafer, of a weight accepted by the bullion markets
(b) a gold coin minted after 1800 that is:
● of a purity of not less than 900 thousandths
● or has been, legal tender in its country of origin
● of a description of coin that is normally sold at a price that does not exceed 180 per cent of the open market value of the gold contained in the coin
(c) an investment gold coin.
Reference: The HM Revenue and Customs Gold imports and exports (VAT Notice 701/21)
https://www.gov.uk/guidance/gold-acquisitions-imports-investments-and-vat-notice-70121
SILVER
Investment Silver is not currently exempt in the UK and is subject to 20% VAT.
Capital Gains Tax (CGT)
Capital Gains Tax (CGT) is a Tax that you pay on profit when you sell, or give away, an asset that has increased in value since buying, acquiring it.
CGT is applicable to a wide range of assets including Shares, Bullion and Second Homes.
Individuals in the UK have a CGT allowance where any gains/profits realised in a single year will go towards the individuals own
CGT allowance
Profit that are below the individuals allowance limit are exempt from CGT and gains over your allowance limit are subject to Tax in line with the appropriate HMRC rates.
Note: The CGT allowance for the 2019/20 financial year is £12,000, however, you should consult a financial advisor or HMRC for up to date information.
CGT Exempt GOLD and SILVER
Sovereign Coins minted from 1837 onwards and Britannia Gold Coins are classed as currency, therefore (like sterling currency) they are both exempt form CGT because of TCGA92/S21 (1) (b); this states that sterling is not an asset for capital gains purposes.
CGT Exempt Coins include: Britannia Gold Coins, Silver Britania Coins, Gold Sovereigns, Gold Lunar Coins and Gold Royal Arms Coins.
Reference: The HM Revenue and Customs Capital Gains Manual
https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg12602
Declaring CGT
Please be aware that we do not give any information on our website shop listings, or on invoices as to what purchases are subject to CGT and this is the responsibility of the buyer.
Before investing in bullion you should seek your own independent advice from an appropriately qualified adviser.