CGT vs currency collapse

[MetalNoob]

Sorry, very new to this. I'm looking to buy some silver coins and weighing up which to get. I am based in the UK, so annoyingly I have to pay VAT on silver.

 

However, I can also pay CGT later unless I buy coins that are legal tender. Now buying such coins is way more expensive than buying bars or non-CGT exempt coins.

 

 

But many people buy physical coins as a hedge against currency collapse. If you have faith in the system, you'd just buy a leveraged ETF or something instead.

 

So my question is this.

If I buy Silver Britannia's which are expensive but CGT exempt because they are legal tender (have '2 pounds' stamped on them), should the British pound go pop and be replaced by some evil NWO global fiat currency, does my silver Britannia cease to be legal tender being as the nation is no longer accepting Sterling as a currency?

 

In other words, is there any point at all in buying coins? Bars cost less, an EFT is easier, coins can only be for collapse, and if they are, will you get the CGT anyway being as the legal tender you opted for no longer exists?

[Shamatti]

If the pound goes pop I don't think CGT will be a consideration you need to worry about.

 

And you would have to buy ship loads of Britannias (or other silver) and have silver sky rocket before CGT became an issue I would have thought. I Understand the first £10,000 odd is tax free any way.

 

As far as legal tender goes - Perth mint coins are legal tender - are they CGT exempt? I don't know. Actually that is a good side point for someone. Is it only UK legal tender which is CGT exempt in the UK? I'm not sure it is, can anyone confirm?

 

So my advice is buy what you like the look of and can afford. Unless you plan to warehouse a ton of the stuff, I don't see CGT as an issue.

[MetalNoob]

Thank you for your reply.

 

Only UK coins are CGT exempt in the UK. Foreign coins are not. So an Austrian Philharmonic is legal tender in Austria as it has a 1.50 Euro denomination. But not CGT exempt in the UK. Interestingly that Austrian coin isn't legal tender in any other country. Not even say France who also use the Euro. Only Austria.

 

Regarding CGT threshold, If I spent as little as £2000 on silver and then silver adjusted from 60/1 with gold to a more reasonable 9/1, then I'd get a hammering from George Osborne. In fact he'd probably come to my house personally to collect it.

 

My head is telling me there is no reason on earth why I'd buy a bunch of Britannia's as an investment despite e-shops promoting its CGT benefits. My heart says they are pretty. My wallet says listen to your head.

[MetalNoob]

I think the distinction I am driving at is fiat currency is distributed and allegedly backed by the Bank of England. And if that got destroyed or became a euro or something else, that would be that.

 

But silver coins are issued by the Royal Mint. The mint doesn't issue notes. Only the BofE. Only coins come from the mint. And the Royal mint is owned by the treasury, not the Bank of England. A currency pop would likely be the end of the bank of England ... but not the treasury. My head hurts.

[silversword]

Only my opinion, but buy what you like. The CGT angle is (unless you have absolutely huge amounts of assets to offload) not really a big deal. 

 

If the world goes all to hell, then it wont even matter.

[HawkHybrid]

if we do get to a gsr of 9/1(which I doubt any time soon) simply

sell enough coins each year so that your capital gains on it is

below that of your yearly allowance.

 

HH

[HelpingHands]

The answer to almost all questions is buy from silver-to-go.com

Brits are almost as cheap as other bullion options. CGT free and almost Vat free.

Also, yes CGT laws could be changed to suit the future so its possible all coins become non-except. For example, if we started using the euro instead of the pound then the Brit would no longer be legal tender with £2 face value. Maybe more to consider for the Scottish.

[Danny-boy]

Don't forget CGT is only on "gain" or profit.

CGT allowance is per year, so as long as you didn't make more than the allowance of profit in a single year, you don't pay CGT.

Not sure what the CGT allowance is, but if it was £20k then you could split it over the financial year to £40k.

If you make £40k on £2k of maples, CGT would be payable but I for one wouldn't mind paying it with those returns!!!!

[lightjaw]

CGT really isnt an issue. Its more of a marketing ploy.

Buy coins from silver to go...no vat on them.

Buy what you like.

It doesnt really matter anyway, because give it a few weeks/months and you will probably find yourself buying the newest low mintage flibbitygibbet from bobs mint for 2000% over spot because you like the look of it.....

[MetalNoob]

Well that is interesting. I hadn't seen VAT free silver coins anywhere. The royal mint bullion site, bullion by post etc.

 

How can they sell silver coins without VAT? Are they all second hand coins? I'm assuming they must be.

 

 

Follow up question. Has anyone destructively tested any silver from 'silver to go'?

 

I can believe there are only 3 youtube videos on such a competitively priced company. The no Vat, lack of google returns etc has me a little suspicious. You know, 'if something is too good to be true ...'

 

 

Thanks for all the advice by the way. It has been very helpful.

[morezone]

Well that is interesting. I hadn't seen VAT free silver coins anywhere. The royal mint bullion site, bullion by post etc.

 

How can they sell silver coins without VAT? Are they all second hand coins? I'm assuming they must be.

 

 

Follow up question. Has anyone destructively tested any silver from 'silver to go'?

 

I can believe there are only 3 youtube videos on such a competitively priced company. The no Vat, lack of google returns etc has me a little suspicious. You know, 'if something is too good to be true ...'

 

 

Thanks for all the advice by the way. It has been very helpful.

 

http://www.gold.de/silbermuenzen.html

 

Bucket loads of dealers here for silver too.  Like STG, they're all from Germany and work on the marginal VAT scheme rather than full VAT.  

[mr-dead]

Dont forget you can also make use of wifes £11,000 CGT limit too

 

So a potential of £22k in gains before any CGT payable.

[MetalNoob]

Thanks for all the advice. Glad I posted.

 

I haven't yet diversified my portfolio to include acquiring a woman yet. I still view them as a depreciating asset with high maintenance costs and due to high volatility, it is easy to half your portfolio overnight if you don't invest wisely. There will be a time when women are a more investible commodity, but right now I think we are at the top of the bubble. I need a crash in their expectations first.

[Paul]

Thanks for all the advice. Glad I posted.

 

I haven't yet diversified my portfolio to include acquiring a woman yet. I still view them as a depreciating asset with high maintenance costs and due to high volatility, it is easy to half your portfolio overnight if you don't invest wisely. There will be a time when women are a more investible commodity, but right now I think we are at the top of the bubble. I need a crash in their expectations first.

 

In the words of Felix Dennis, the British publishing tycoon

 

“If it flies, floats or fornicates, always rent it.” 

[MetalNoob]

It is unpleasant enough when you rent an aircraft and someone else has left their rubbish in the back of it.

 

Anyway I suspect I will incur the wrath of the moderation team if this isn't brought back to talking about silver.