Atkinsons Bullion & Coins
Back to May 2022

Investors traditionally turn to gold and silver to protect their wealth in times of global financial or political uncertainty. The last few years has seen people flock to precious metals in great numbers, with most looking for the best way to make a return on their investment whilst avoiding a hefty tax bill when they decide to sell their gold and silver coins and bars.

This article will cover the best and easiest way to choose the tax-friendly option when investing in precious metals.

What is Capital Gains Tax?

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. This includes assets such as shares, bullion, and real estate property.

CGT is payable if an investor makes over a certain amount of profit in one financial year, and is taxed on the gain that is made, not the total amount of money that is received. The tax rate payable can vary and is displayed in full on the HMRC website.

Value Added Tax

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

Can I buy & sell gold and silver without paying tax?

Investors can avoid paying Capital Gains Tax on their gold and silver by purchasing coins that are produced by The Royal Mint. CGT is not applied to British legal currency, including all gold Britannia and silver Britannia coins, post-1837 gold Sovereigns, and Queen’s Beasts coins, and more, regardless of how much they increase in value.

Also, all gold products that are deemed ‘bullion’ or investment gold are also free from Value Added Tax. All gold coins and bars on our website will be VAT free, unless stated otherwise.

Can I buy VAT-free silver?

Investors can 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 passing on any VAT to you. The VAT is paid by us on the profit that we make from the sale of these coins.

Investors can pick up some great bargains with these VAT-free silver coins, especially if these coins are also exempt from CGT too. The lack of VAT can make a large difference to the retail price, meaning great savings for silver stackers – so it is a good idea to grab them as they tend to sell out quickly due to their popularity with our clients. However, they are updated constantly so it’s a good idea to keep checking back.

Any other silver, including new coins, and all bars and rounds will include VAT at the standard rate of 20%.

Buying tax free gold and silver

For those looking to gain profits from their investment, CGT exempt, and VAT free coins could well represent the best value. While the initial purchase of some gold bars, for instance, may appear slightly lower than the same weight in gold Britannia coins, the tax break on coins means a long-term saving could be considerable.

If buying tax free gold and silver is something that is of interest to you, then its important to look for products are free from VAT and/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 can be found on our ‘Pre-Owned Silver Coins’ page.

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

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

Our team are here to help advise which may be the best physical gold or silver option to buy for your portfolio and to answer any questions you may have about buying tax-free precious metals.

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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