One of the biggest benefits of investing in gold is that many physical gold products are tax-free, exempt from both Value Added Tax (VAT) and Capital Gains Tax (CGT).
What is Value Added Tax (VAT)?
VAT is a tax collected on behalf of HM Revenue & Customs by UK businesses. All goods and services available in the UK are either VAT-rated or VAT-free. The current standard rate of 20 per cent is applied to most items, though there are different levels.
Businesses must register for VAT and pay HM Revenue & Customs after their sales exceed a certain amount. For those items that are VAT-rated, businesses will pass on the cost of VAT to their customers.
Find out more: VAT on Gov.UK
What is Capital Gains Tax (CGT)?
CGT is a tax on the profit when you sell (or swap, give away, gift, transfer or are compensated for) something that has increased in value.
CGT is paid to HM Revenue & Customs and applies to individuals, self-employed sole traders and those in a business partnership. Other businesses, like limited companies, will pay Corporation Tax on the profits they make from selling assets.
Some assets you hold will be CGT-free, meaning you won’t have to pay CGT regardless of the profit you make. There’s also a threshold, meaning you’ll only pay CGT on eligible items if your total gains are above an annual tax-free allowance.
Find out more: CGT on Gov.UK
Which gold products are tax-free?
Gold bullion bars are exempt from VAT if they have a purity of .995 or more.
Gold bullion coins must have a purity of at least .900 and have been minted after 1800 to be exempt. Coins must also be or have been legal tender in their country of origin and be normally sold at a price that does not exceed 180 per cent of the value of the gold contained within the coin.
Typically, bullion coins that are considered legal tender in the UK are both VAT and CGT-free. Gold Sovereigns minted in or after 1837 and gold Britannia coins are exempt. This means that the following coins can all be traded with any profits realised remaining unaffected by VAT and GCT:
Browse our full range of tax-free gold coins now.
How do you know if a gold bullion product is tax-free?
On The Gold Bullion Co. online shop, you’ll see a stamp next to each listed product that is VAT- or CGT-free. On the page featuring our collection of British gold coins, for example, you can clearly see that all of the products listed here are free from both VAT and GCT.
We offer competitive, real-time pricing and fast, fully insured delivery. To make a tax free investment in your future today, browse the wide range of tax free gold bullion products available on The Gold Bullion Co. online shop now.
Buy VAT free gold from The Gold Bullion Company, a reputable and well-known UK-based family business.
Our outstanding customer service team - who have received a 99.6% positive rating in independent reviews from over 10,500 customers - backs every purchase with pre-sales advice and post-purchase support. Every purchase features fully insured delivery and our unique buy-back guarantee.
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