VAT and CGT FREE

Our experts at Hallmark Investments can assist you on how to gain the best value and avoid taxes. From 1st January 2000, VAT was stopped on gold of a certain purity by Her Majesty’s Revenue and Customs. British legal tender such as gold and silver Britannia coins, are exempt from Capital Gains Tax (CGT) entirely.

Capital Gains Tax

Capital Gains Tax

Tax is calculated on the gain that is made and not the total amount received.

Profits below the allowance limit are exempt from CGT, whilst gains over your allowance will be subject to tax in line with HMRC rates.

For example; over one financial year, an investor bought bullion for £20,000 and later sold it for £35,000. The investor made a gain of £15,000 and it is this particular amount they would be taxed on.

The tax rate payable varies from 18% to 28% - we recommend checking the exact rate from the HM Revenue & Customs website.

https://www.gov.uk/capital-gains-tax

All coins which are produced by the Royal Mint and qualify as British legal currency are exempt from Capital Gains Tax. This includes all silver and gold Britannia coins and gold sovereign coins minted from 1837, including proof sets. You can make unlimited tax-free profit on investments of any value on these coins making them a popular choice with our customers.

Please note it is the responsibility of the individual investor, and not that of Hallmark Investments, to declare any Capital Gains Tax that may be due.

We advise anyone who is unsure to get in contact with an accountant or qualified financial adviser for full legal advice.

Many investors choose to invest in smaller unit gold coins or bars giving them the added flexibility of being able to sell parts of their holding over more than one financial year.

For example, an individual could sell half the coins now and the remaining half in the next financial year minimising the amount of CGT they are charged on the profit released.

Ofcourse, CGT UK coins mentioned above provide peace of mind that the investment is exempt from CGT.

VAT

When investing in bullion, an important consideration is the potential VAT implications of your purchase. Currently, investment gold is exempt from VAT, this includes all gold bullion bars and coins purchases in the UK and EU.

It is a common mistake for investors to assume that all precious metals are exempt from VAT due to the VAT free status of investment gold. Each precious metal has its own merits and so individuals should consider the different investment opportunities of each specific metal.

Since the 1st January 2000 there has been no VAT payable on investment gold. This fell in line with the EC Council Directive 98/80 EC, harmonising regulations between the UK and the rest of the EU. Additional information on gold and VAT can be found on the link here.

VAT

Conversely, silver bullion is subject to VAT, presently at 20% in the UK.

Prices on our website will give you a clear breakdown of the amount of VAT you are paying on your silver investment. If you are VAT registered and believe you may be able to claim your VAT back on silver bullion, you will need to seek advice from your accountant.

An important point to consider is although investment gold is exempt from VAT this doesn’t apply all forms of the precious metal.

Investment gold is currently;

(a) Gold bars of a fineness not less than 995 of a weight accepted by the bullion markets.

(b) A gold coin minted after 1800 that:

Has a fineness of not less than 900

Is, or has been, legal tender in its county

Is of a description of coin that is normally sold at a price that does not exceed 180% of the open market value of the gold contained in the coin, or