Uk Silver - VATquestion

4 posts / 0 new
Last post
#1 Sun, Jul 17, 2011 - 9:42am
American Oligarch
Offline
Joined: Jun 16, 2011
35
221

Uk Silver - VATquestion

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.

Edited by: American Oligarch on Nov 8, 2014 - 5:09am
Sun, Jul 17, 2011 - 10:09am
snoochieboochies
Offline
-
Cardiff
UK
Joined: Jun 14, 2011
79
160

I think you're liable for

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.

I'm a noob, please don't take anything i say as trading advice!!
Sun, Jul 17, 2011 - 10:47am (Reply to #2)
American Oligarch
Offline
Joined: Jun 16, 2011
35
221

Thanks

Ok thanks for the information.

Sun, Jul 17, 2011 - 10:52am
daveyboy
Offline
-
UK
Joined: Jun 19, 2011
780
2432

Just to elaborate on this,

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

Notice: If you do not see your new comment immediately, do not be alarmed. We are currently refreshing new comments approximately every 2 minutes to better manage performance while working on other issues. Thank you for your patience.

randomness