Hi Just a quick question.
When I brought some silver bullion from a dealer in the UK I was charged 20% VAT.
Is that it or will I have to pay or collect a further VAT charge, if at any point in the future I sell it back to the bullion company??or someone else.
Thanks for your help.
I think you're liable for capital gains tax @20% if you make a profit on anything over £8,000. IE: if you bought 8K worth of silver and then sold it for 10K, you'd need to pay 20% capital gains tax on the £2,000 profit.
That's assuming that you are a UK Resident.
Just to elaborate on this, there are 3 routes to purchasing your silver, the first is through a bullion allocated holding. For this I use bullionvault but will hold off providing the referral code because I don't want to spam.
The second method is through purchasing it from the UK
Third route is to buy the physical from Germany where the VAT rate is 7%
As for the question of capital gains, subject to income, the current threshold is just over 10.000. Now I am not encouraging you to do so, but when you feel the time is right, you could sell to a private individual and with cash being exchanged. Other than that, you could sell in March, then when the tax year rolls over to April, it is classed as a new tax year and at that point, you could sell again.
So essentially 20.000 tax free
Hope that helps
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Ok thanks for the information.