UK TAX - Buying gold and Silver via LTD

[DanTer]

LTD company (VAT exempt) 
We have a bit of spare cash 20k+ and would like to but silver and gold coins - how this looks like in UK from tax point of view ?
When I buy coins which are CGT exempt do I still need to pay corporation tax after the sale ?
Can I just take a cash from company buy coins today and get that amount trough the year via payroll or coins need to be booked as assets in the company ?
Anyone with any experience ?
Thanks

[dicker]

Have a look at this thread.

(1) I believe CGT is payable if owned by a company (even if Sov or Brittannia)

(2) I don't want PM's being recorded as an asset on my company accounts which anyone can read!

Best

Dicker

 

 

[BackyardBullion]

For the same reasons as dicker has pointed out I would steer clear of this. 

If you are buying silver coins and claiming the VAT back you are in grey murky water if those "assets" coins go missing from the company books at some point. 

There are probably a few different laws that restrict people from registering as a Ltd company, registering for VAT then buying a bunch of expensive equipment, claiming the VAT back and then closing down the company to walk away with the assets with a 20% price reduction. 

I suspect this would constitute VAT fraud. 

If, however, your company wants to buy silver and gold coins as an asset to hold on the companies books - at some point when you sell them you would have to declare capital gains taxes and then pay corporation tax on the profits. And as Dicker rightly pointed out, those assets would be recorded on the company accounts publicly. 

[DanTer]

@BackyardBullion - yes , I fully agree about VAT but we have food company which is VAT exempt - so we do not claiming any VAT.

Thanks for answer - I think it may be better just to get money out - pay off income tax buy CGT exempt gold - in current economic situation I may get back that 20% I paid for income tax  just from gold price increase sooner that I expect