Curious about the maths

[Gozzle]

Hey Good Folks

As a stacking newbie, I'm wondering if anyone who is better at maths than me would be willing to share their findings. 

I am UK based, and before I make my first purchases I'm curious to know the maths behind VAT and CGT, and which purchases will be more beneficial in that regard. So far my findings are as follows:

1. Gold is VAT exempt, Silver is not
2. Silver has a higher premium than Gold 
3. Coins of legal British tender are exempt from capital gains tax, bars are not

At this point my brain has exploded. So I'm wondering, is it more beneficial to focus on gold which has a lower premium and is exempt from VAT, or do I focus on silver at a higher premium, and subject to VAT. With coins of legal tender being exempt from CGT would it be better to prioritise them over bars?

That said, I do intend to diversify between them but need some of your wisdom and experience to decide a ratio/percentage. 

Sorry, total newb so I appreciate your grace. 

Gozzle

 

[Rll1288]

That's not an easy question to answer as it would probably be "depends"

Yes Silver and Platinum attract VAT but premiums can depend on the pieces you buy. Especially if you get through TSF then premiums are generally lower and VAT is (to a degree and I know I will get pulled up on this) in the price being offered.

CGT is something to think about and it is not applied to legal tender cons in the UK  and therefore not on buying Silver or Gold that have a denomination. To me though I have bars, coins in both PM's and to be fair the CGT is not something I would worry about at this moment in time anyways. I am sure someone can give you a better answer but in my mind it doesn't affect my purchase decision as much as the price I can get so i.e. if I can get closest to spot (silver and gold) at the time of purchase

[Gozzle]

2 hours ago, Rll1288 said:

That's not an easy question to answer as it would probably be "depends"

Yes Silver and Platinum attract VAT but premiums can depend on the pieces you buy. Especially if you get through TSF then premiums are generally lower and VAT is (to a degree and I know I will get pulled up on this) in the price being offered.

CGT is something to think about and it is not applied to legal tender cons in the UK  and therefore not on buying Silver or Gold that have a denomination. To me though I have bars, coins in both PM's and to be fair the CGT is not something I would worry about at this moment in time anyways. I am sure someone can give you a better answer but in my mind it doesn't affect my purchase decision as much as the price I can get so i.e. if I can get closest to spot (silver and gold) at the time of purchase

Thanks. It's actually helpful to know that it's not clear cut. Confirms what I have been thinking in a few ways.

[HawkHybrid]

for me the maths is simple.

1. if in doubt, choose bullion gold sovereigns(slowly replace with more suitable items when required).

2. buy based on need and not based on greed.

 

HH

[Booky586]

2 hours ago, HawkHybrid said:

the maths is simple

I totally agree.

If you remove the items of greater expense (i.e. a high premium, attract VAT and CGT) then you're left with gold, namely sovereigns and britannias. Of these two, the sovereign is readily available, highly collected and easily sold.