Tax Considerations
When deciding to buy silver or gold, depending on the type or metal and form of metal you are buying, there will be various tax considerations. We will focus on physical gold and silver in this guide and have categorised them by their most common forms:
Jewellery
When buying jewellery, you will be paying VAT on any items that you buy here in the UK. If you sell that jewellery at a later date, there may be some Capital Gains Tax considerations. These depend on a variety of factors including whether a profit was realised between the buy and sale, whether the profit exceeds the CGT threshold, whether the seller is also disposing of any other assets within that same year.
Coins
The type of coin will help determine the relevant tax considerations. Gold Britannia coins and Gold sovereigns minted in 1837 or later are both considered sterling currency and as such are exempt form CGT and are also VAT exempt.
Bullion bars
When it comes to gold bullion bars, investment grade 24kt bars in the UK are VAT exempt. So whether it’s a 5g 24kt gold bar or a kilo bar, you currently do not pay VAT on them. However on Silver bullion you will need to pay VAT on them. For both gold and silver bullion, there may be CGT considerations as they are not exempt.
This article is intended as a guide and not to be taken as financial advice. We encourage seeking the advice of a qualified financial advisor.