Buying GOLD instead of Silver, due to VAT in UK.

[dicker]

VAT on imported silver. 

[securitizones]

Looks like I'll have to move to gold 😭

[Drawga]

10 minutes ago, securitizones said:

Looks like I'll have to move to gold 😭

Think I'm gonna do the same, I just need to be mega frugal every few months.. or once a year, get a 10th or Q.
🤷‍♂️ VAT doesnt seem to be worth the investment if you know what I mean..

[dicker]

Hi @securitizones 

Agree - I think Sovs are great and the best thing to do is save for a whold Sov over a period of time.  Then use the forum Comparison tool to work out where to get the cheapest.

To be honest collect the cash and then buy on the forum - thats where I get really good prices

Cheers

Dicker

[securitizones]

@dicker

Thanks. Good idea. Never used forum comparison tool. Only joined in December. Will have to have a look. Agree would much prefer buying on here to support the forum and make friends and trade. Much more exciting and I will learn more than just buying from dealers. 

[dicker]

Hi @securitizones

Yes - I agree - the key reason to buy on the forum for me at least is the price and the ability to see what you are buying.

If I buy from say HGM or Atkinsons, I cant see a pic of the coin.  On the forum, people are only to happy to send good pictures!

Also, people on the forum have been fantastic to deal with.  One instance where my payment had an issue (not a problem on my end) and the forum member was such a gent about it.

Best

Dicker

 

 

 

[RiverbankSilver]

Now that Silver is not looking that attractive in the UK anymore, I wonder if we will see higher premiums for Sovs in the future?

If the demand increases for Sovs maybe the price will increase too?

Just a thought 💭 

[dicker]

Just now, RiverbankSilver said:

Now that Silver is not looking that attractive in the UK anymore, I wonder if we will see higher premiums for Sovs in the future?

If the demand increases for Sovs maybe the price will increase too?

Just a thought 💭 

I think there are just too many Sovs i.e. they are super liquid. 

Silver in the UK will still be desirable - but perhaps with people selling silver that is already in the UK.

Cheers

Dicker

[Silverman2U]

2 hours ago, securitizones said:

@dicker

Thanks. Good idea. Never used forum comparison tool. Only joined in December. Will have to have a look. Agree would much prefer buying on here to support the forum and make friends and trade. Much more exciting and I will learn more than just buying from dealers. 

The tool includes the prices at a lot of dealers too from what I recall. 

[Silverman2U]

On 04/01/2021 at 20:12, BackyardBullion said:

No tax needs to be charged on private sales unless the person or business selling them is registered for VAT with HMRC and they will have a checkable VAT number. 

The threshold for registration is £85,000 turnover per year as a business or a private individual that just acts as a seller is also deemed a business. 

@BackyardBullion Is that based on a tax year April to April, or from when the actual sale is made? I assume that includes the sales of CGT free coins too? And I suspect its turnover too? Not just profit?

e.g. if someone build a big stack of CGT free coins over years, then one day they just sold (say to pay off their mortgage) would they have to pay VAT? 

[BackyardBullion]

22 minutes ago, Silverman2U said:

@BackyardBullion Is that based on a tax year April to April, or from when the actual sale is made? I assume that includes the sales of CGT free coins too? And I suspect its turnover too? Not just profit?

e.g. if someone build a big stack of CGT free coins over years, then one day they just sold (say to pay off their mortgage) would they have to pay VAT? 

The following is not formal VAT advice, just my understanding on the subject. 

VAT registration thresholds apply to people who sell as a business. If you are just a private investor and you make some one off sales then it won't count. 

VAT threshold is based on Turnover, not profit. 

VAT is any rolling 12 month period, not April to April and is completely separate to the regular tax year. 

HMRC would apply the following "badges of trade" if they suspected you were trading: https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim20205

If you decide to sell your 500 silver coins one at a time on eBay or say your own e-commerce website over a long period of time then HMRC might think you are trading as a business - but even then it isn't cut and dry - just look at the badges of trade above. 

So in your example, no - you would not have to worry about VAT or registering or anything other than just recording any capital gains that are not exempt (if any) if you sold all your stack in one go to a dealer. 

One last thing to mention - Investment Gold Coins are VAT EXEMPT - which is very important, it means they don't count towards the threshold for VAT registration. You could sell £100,000 worth of gold investment coins in a 12 month period as a business and not have to register for VAT. You might very well get a letter from HMRC at some point asking for some evidence you are only trading in VAT exempt goods but in theory this is fine. 

Last thing to add - if you are deemed to be "trading" then you have to declare you profits to HMRC on a self assessment tax form and pay income tax and National insurance accordingly. 

[ChrisSilver]

Posts moved to a new topic as promised yesterday that I would move today. 

Please start new topics for new discussions as to not let a topic go off course, there are many different sections of the forum to cater for different subjects. Please help to keep the forum tidy as it is ultimately a much better viewing/reading experience for others  

[Hunter87]

Silver doesn’t even get me excited anymore! Now it’s gold gold gold baby!!!!

[StackemHigh]

I'll still be making my regular silver purchases for sets, collections and nice pieces i like the look of, but for stacking purchases i'm already gold  for nearly two years now and more recently for platinum.