How Many of Us Knew That VAT Used To Be Charged on Gold ?

[Pete]

I learned something today from the Royal Mint website - copied below

Before 1^st January 2000, gold sales in the UK were subject to VAT. This changed because of the disparity between rules in the European Union. For example, some countries in the EU didn’t charge VAT on gold at all or charged it at a very low rate, which meant that the UK was at a disadvantage compared with other EU member states. The introduction of the exemption meant that for VAT purposes, gold would be treated the same as other investments, such as stocks and shares.

Now that we are outside of the EU and looking at WORLDTRADE perhaps there is an argument for lowering or eliminating the punitive 20% VAT on investment silver and platinum to which there is no tax applied in many countries. The old statement above falls flat on its face when you could source both silver and platinum VAT free, or at a very low rate, whilst we were in the EU up until January 01 this year.

HOWEVER ...

What is the chance of our government deciding to change the status of gold and add 20% VAT ?
The argument would go along the lines that it would be taxing the "rich" to pay for the "poor" and let's be honest we could all live without gold .... etc..  blah ...  blah !!

[modofantasma]

Removing the tax would proably be about as popular as giving landlords some tax breaks with the gen public 😂 

Possibly more concerned about vat being reintroduced. 

 

[modofantasma]

Can only imagine the news reports on that if it came for discussion.... 

Rich people who can afford to splurge on the luxurious metals of Kings wanting a reduction of the vat on their precious metals like solid silver coins and bars whilst xxx% of people can't even afford basic amenities.

We spoke to one reader who is struggling to even buy their newborn the latest £3k smartphone despite working part time in a shop and only eating out 6 nights a week "they're greedy pigs" "how dare they" 

🤣🙄

[KevinFlynn]

Taking a source of income from a government? Good luck.

[Pete]

2 hours ago, KevinFlynn said:

Taking a source of income from a government? Good luck.

In reality you are only asking to take back some of your own money as the government doesn't have any money as it all originates from the tax payers - the same people who would like some back please. Maybe someone needs to write an article stating that he/she would like to buy more precious metals rather than burn fossil fuels ( gas for heating and petrol for the car ) and at the same time save the planet from a climate crisis. Maybe GRETA and Extinction Rebellion can lend support ??

[KevinFlynn]

Maybe 😁

I do hope they never touch the no VAT on gold.

Ancedote: we introduced a tax on champagne 120 years ago to finance imperial warships - it's still in place...

[Arganto]

Brown sold the UK's reserves for a half drunk pint of cider and a promise of a wet weekend, I'm not sure they know what gold is.

[Coverte]

The Government do pretty well out of VAT already and indeed, purchase tax before that.

Their ability to mismanage it thereafter becomes a bigger mystery with each new year, it's a great shame so few in power have never had to run a business IMO.

[dicker]

The first foray into PM’s for investment was spurred by a website called taxfreegold thanks to @LawrenceChard

Not only did it explain the background to Tax free gold, but it also contained a wealth of information.

The website has some fantastic articles, photographs and information.  I particularly liked the articles which bullion to buy - I think the article was titled “Buy circular bars” or something similar.  

I also greatly enjoyed the fight against the theft of photographs used by sellers on eBay.  
 

So yes, I did know, but only because someone explained and promoted tax free gold.  
 

Best

Dicker

[GoldStatue]

I knew we had to harmonize our VAT rules on gold with the EU and basically that is why they got rid of it.

It looks like the government are going after income tax rises at the moment to fill their treasure chest, so VAT on gold probably wouldn't bring in enough to fill any budget holes.

They'd probably tax peoples pensions if they were really desperate.

I can see them re-introducing VAT on gold if peoples behaviour changed and everyone stopped spending and started saving in gold instead of currency.

[LawrenceChard]

10 hours ago, Pete said:

I learned something today from the Royal Mint website - copied below

Before 1^st January 2000, gold sales in the UK were subject to VAT. This changed because of the disparity between rules in the European Union. For example, some countries in the EU didn’t charge VAT on gold at all or charged it at a very low rate, which meant that the UK was at a disadvantage compared with other EU member states. The introduction of the exemption meant that for VAT purposes, gold would be treated the same as other investments, such as stocks and shares.

Now that we are outside of the EU and looking at WORLDTRADE perhaps there is an argument for lowering or eliminating the punitive 20% VAT on investment silver and platinum to which there is no tax applied in many countries. The old statement above falls flat on its face when you could source both silver and platinum VAT free, or at a very low rate, whilst we were in the EU up until January 01 this year.

HOWEVER ...

What is the chance of our government deciding to change the status of gold and add 20% VAT ?
The argument would go along the lines that it would be taxing the "rich" to pay for the "poor" and let's be honest we could all live without gold .... etc..  blah ...  blah !!

 

3 hours ago, dicker said:

The first foray into PM’s for investment was spurred by a website called taxfreegold thanks to @LawrenceChard

Not only did it explain the background to Tax free gold, but it also contained a wealth of information.

The website has some fantastic articles, photographs and information.  I particularly liked the articles which bullion to buy - I think the article was titled “Buy circular bars” or something similar.  

I also greatly enjoyed the fight against the theft of photographs used by sellers on eBay.  
 

So yes, I did know, but only because someone explained and promoted tax free gold.  
 

Best

Dicker

How Many of Us Knew That VAT Used To Be Charged on Gold ?

Anyone who read this page of one of our heritage sites:

VAT Abolished on Investment Gold

https://taxfreegold.co.uk/newsaboutinvestmentgold.html

As for the Royal Mint, I don't think they realised that "Sterling" was exempt from Capital Gains Tax until they read it here:

https://taxfreegold.co.uk/capitalgainstax.html

Which is probably where most UK journalists and dealers also read it.

😎