Unlike investments in gold, which are VAT-free, purchases of silver and platinum are both subject to value-added tax (VAT). But why do you pay VAT on silver and platinum but not on gold and when are bullion coins subject to Capital Gains Tax?
Why do I pay Value Added Tax (VAT) on silver bullion?
Almost everything we buy in the UK is subject to VAT and there usually has to be a good reason for the Government not to add VAT to a product. Silver and platinum are no different. And gold used to be too, until very recently.
Why is VAT not charged on gold?
Before 1 January 2000 gold sales in the UK were subject to VAT. This changed because of the disparity between rules in the European Union. For example, some countries in the EU didn’t charge VAT on gold at all or charged it at a very low rate. This meant that the UK was at a disadvantage compared with other EU member states. The introduction of the exemption meant that for VAT purposes, gold would be treated the same as other investments, such as stocks and shares.
Which Royal Mint Bullion products are free from VAT?
All gold bullion and gold coins sold by The Royal Mint are free from VAT, including:
- Royal Mint Refinery Gold Bars
- Gold Britannia coins
- The Sovereign
- Gold Lunar Coins
- Gold Queen’s Beasts Coins
- Our Signature ranges of gold, silver and platinum
Which Royal Mint Bullion products are free from Capital Gains Tax (CGT)?
All UK legal tender is free from CGT. Including:
- The Sovereign
- Gold and silver Britannia coins
- Gold and Silver Queen’s Beasts Coins
- Gold and silver Lunar Bullion coins
What’s the difference between VAT and CGT?
VAT is the tax you pay on something you buy, which usually adds 20% to the price. But there is also a 5% VAT rate and a 0% rate.
CGT is the tax you pay on the profit you’ve made on an item when it’s sold. For example, if you bought a coin for £250 and sold it for £700, the CGT would be on the £450 you made from the sale. But you don’t have to pay CGT if all your gains in a year are under your tax-free allowance.
Customs and Import Duties – Tax on bullion
Any order may be assessed for import or customs fees, depending on the laws of particular countries. Customers must comply with all laws and regulations of the destination country.
For orders dispatched to countries outside of the EU, VAT will not be charged. These packages may, however, be assessed for import or customs fees, depending on the laws of particular countries. All invoices in respect of the products, services and storage or delivery (where applicable) for royalmintbullion.com will be subject to VAT where applicable. VAT charges will be clearly shown where applicable.
Customs or import duties are levied once the package reaches the destination country. Additional charges for customs clearance must be paid by the recipient; we have no control over these charges and cannot predict what they may be. Customs policies vary widely from country to country and you should contact your local customs office for more information.
Please be advised The Royal Mint are not tax advisers and any information provided on royalmintbullion.com in connection with the tax status of the Products is provided for general information only and should not be relied upon; in particular, the underlying tax legislation is always subject to change. You should obtain any specific advice from your tax advisers.