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Atkinsons Bullion & Coins
Back to March 2021

In times of global political and financial uncertainty, investors traditionally turn to gold and silver to protect their wealth. This last year has seen people flock to precious metals like never before, with investors looking for the best way to make the biggest return on their investment and, with the end of the tax year looming, looking to avoid a hefty tax bill when selling their gold and silver.

The best and easiest way to do this is to choose the tax-free option.

Tax-Free Gold & Silver: CGT

Capital Gains Tax (CGT) is a tax applied on the profit when you sell, give away, or dispose of an asset you own that has increased in value. These assets can include shares, bullion & real estate property.

CGT is payable if an investor realises over a certain amount of profit in one financial year and are then taxed on the gain that is made (not the total amount of money that is received). The tax rate that you pay varies - you can find the exact rate from the HMRC website.

However, there is a way for gold and silver investors to avoid paying Capital Gains Tax on their coins. The tax is not applied to British legal currency, which means that all coins produced by The Royal Mint that qualify as British legal currency are exempt from Capital Gains Tax, regardless of how much they increase in value.

This includes both pre-owned and new gold Britannia and silver Britannia coins, as well as post-1837 gold Sovereign coins (including Proof sets), and Queen’s Beasts coins. For individuals looking to gain large profits from their investment, these CGT free coins could well represent the best value. While the initial purchase price of some gold bars, for instance, may be slightly lower than the same weight in gold Britannia coins, the tax break means a long-term saving can be considerable.

Tax-Free Gold: VAT

Value Added Tax (VAT) is a tax of 20% charged on most goods and services.

Gold products that are deemed ‘bullion’ or ‘investment gold’ are free from VAT. All gold coins and gold bars on our website, both pre-owned and new, unless stated otherwise, will be VAT free.

Tax-Free Silver: VAT

All new silver bars and silver coins are subject to VAT at the standard rate of 20%.

However, there is a way for investors to avoid paying VAT on many pre-owned silver coins, due to the Margin Scheme. This scheme, run by HMRC, allows us to re-sell second-hand silver coins that we have bought from the public without charging any VAT to the client. The VAT is paid by us, on the profit that we make from the sale of these coins.

Investors can pick up an excellent bargain with these VAT-free second-hand silver coins, especially Britannias and Canadian coins. The lack of VAT can obviously make a big difference to the retail price, meaning great savings for silver investors – so if you see any of these VAT Free silver coins, it is a good idea to grab them as they tend to sell out quickly due to their popularity with our clients. These are updated constantly, so it’s a good idea to keep checking back with us.

Any other silver, including bars and rounds etc. will be charged with VAT.

Where to Buy Tax Free Gold & Silver

If buying tax free gold and silver is something that is of interest to you, then it’s important to look for products that are free from VAT or CGT. These are marked clearly across our website.

All silver coins that are free from VAT will include ‘VAT Free’ in the title and will be found on our ‘Pre-Owned Silver Coins’ page.

All gold coins that are free from Capital Gains Tax can be found on our ‘CGT Free Gold Coins’ page.

All silver coins that are free from Capital Gains Tax can be found on our ‘CGT Free Silver Coins’ page.

Secure Your CGT Free Gold

Shop CGT Free Gold

Secure Your CGT Free Silver

Shop CGT Free Silver

This blog represents one person’s opinion only. Customers should conduct their own research and take advice before making an investment. We do not offer investment advice.

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