Gerrards Bullion - Your guide to investing in gold and silver

17 Value Added Tax (VAT) VAT on investment Gold Since January 1st, 2000, all investment gold in the UK is exempt from VAT. This covers gold bars and qualifying gold coins that: • Have a purity of at least 995/1000 (bars) or 900/1000 (coins), • Are legal tender in their country of origin (coins), • Are sold at a price not exceeding 180% of their market gold content. The exemption was introduced to harmonise UK rules with those of the European Union, ensuring a level playing field for investors and dealers. This means investment gold is treated similarly to other financial assets, like stocks and shares, and investors do not pay VAT when purchasing most gold bars or coins (as long as they meet HMRC’s definitions). VAT on Silver and other precious metals Unlike gold, silver bullion is still subject to VAT at the standard 20% rate in the UK. This must be factored into the purchase price, making silver generally less tax- efficient compared to gold for UK investors. However, it is possible to avoid paying VAT on your silver investment by utilising Gerrards Bullion’s oversees storage options – see page 18 for further details. Claiming Back VAT Private individuals cannot reclaim VAT on silver. Businesses may be able to, depending on their VAT registration and specific circumstances, but such claims should only be made after seeking professional advice.