Capital Gains Tax

[scubajunky]

HI all,

If Silver shoots to the moon someday if we have a global meltdown. How can Silver be sold avoiding paying tax on it ? 

[Pete]

11 minutes ago, scubajunky said:

HI all,

If Silver shoots to the moon someday if we have a global meltdown. How can Silver be sold avoiding paying tax on it ? 

Here I guess !!

[DarkChameleon]

28 minutes ago, scubajunky said:

HI all,

If Silver shoots to the moon someday if we have a global meltdown. How can Silver be sold avoiding paying tax on it ? 

If silver shoots to the moon you'll have more problems stopping the government and the military coming knocking for all of it and a promise never to fulfill restitution for it.

[Thelonerangershorse]

Always buy legal tender coins, they're CGT free    (for now)

[Martlet]

Sell only sufficient to remain under the allowance for the year.

[scubajunky]

I think the GTC free coins are the Britannia's and only 1oz.

I've bought all my Silver from the EU to avoid tax buying it. 

[sixgun]

@scubajunky there is more than Britannias - all the Queen's Beasts, the Lunar coins, the Valiant......... all are UK coinage - legal tender and CGT free.

https://www.royalmintbullion.com/Products/Silver-Coins/Silver

[scubajunky]

Bit late for me now I have only 150oz of legal tender and 250oz of other silver ! 

[silenceissilver]

2 hours ago, scubajunky said:

HI all,

If Silver shoots to the moon someday if we have a global meltdown. How can Silver be sold avoiding paying tax on it ? 

If you manage to bring it to a country where there is no capital gain tax, well that would be one possibility. Not sure if there would be an export tax to pay but I assume that would not be the case. In Germany there is no capital gain tax on PMs as long as you have hold it for at least a year. That's supposed to discourage short term speculation. For this you need to be able to show invoices for your purchases though. When I bought an Austrian Philharmonic 1 ounce gold coin on holidays in Austria, I have asked them about taxes - they said there is no tax, you would not need an invoice. I would assume it's similar in some Eastern European countries. Capital gain tax is only due after a profit of over £11600 and only for the part of the profit that exceeds this figure. For most silver stackers that would only ever be relevant in the case of strong inflation - which of course is part of your question. I think it unlikely that at a melt down of the global economy silver prices wouldn't go up in purchasing power but let's assume it. In that case if you had not made a gain in purchasing power but would get over the £11.600 - it would be interesting if you could argue you had no profit, even if you had a nominal one due to hyperinflation. I have the strong suspicion that bureaucrats would not bother about purchasing power but stick to the strict wording of the text book.

[sixgun]

16 minutes ago, scubajunky said:

Bit late for me now I have only 150oz of legal tender and 250oz of other silver ! 

Well considering the CGT allowance is £11 700 this year and £12 000 next, if you sold across two years then you would have £23 700 allowance -

over £23 700/250 = £94.80 capital gain per ounce - a bit more as you can index your purchase. So if you paid £16 per ounce on average you would only be bothered with selling prices over £111 per ounce on your non UK coinage silver. 

i don't think you have a problem but if you continue to stack it is something to bear in mind. If you sold online there is a scheme where you can sell £1000 of stuff a year and it does not need to be declared. In private sales who knows what you have and what you sold. i certainly don't worry about CGT. Don't let the pirates get you. 🏴‍☠️

[scubajunky]

Thanks for taking the time to do the calculation, I should have thought of that myself!

I'm hoping for $500usd silver though !!!!

Of course the other issue is that it will probably spike so might not hold it's price over two years.

I should have only bought legal tender from the EU. 

Never mind, live and learn, thanks again for taking the time to respond and to everyone else too!

[SiliconToad]

I find these sort of questions rather curious as the answer depends entirely on what you mean by "global meltdown." If you mean a recession/depression, your best option to maximize your profits tax-free are likely to be the same as it is today (person to person, silver for fiat).

If you are talking about a without rule of law scenario, then the tax man will be the least of your concerns. You will also not likely to have too many buyers for your stack as food, water and essentials will be more valuable for barter than any other means of exchange. The stack could be of use after things settle down and some order is established, but all bets are off on what the value of silver will be to you - the guys with the guns will let you know. 

[sixgun]

57 minutes ago, scubajunky said:

I should have only bought legal tender from the EU.

i see you are in the UK.
HMRC CGT rules only apply to UK silver coins - other coins in the EU are treated the same as anywhere else in the world and are not exempt CGT.

[vand]

Sell high premium non-CGT exempt coins first, during the main phase of the bull market and reinvest in low premium CGT-free coins.

However, I would expect the gold/silver ratio to also start to fall, so I would probably look at it as an opportunity to switch into gold which is CGT-free anyway.

And it's another another reason why diversifying with ETF holdings inside an tax-efficient wrapper might be a good idea.