Strategy, I don't like Silver, am I wrong?

[Anteater]

1 hour ago, LawrenceChard said:

Most people seem to misunderstand the CGT rules on coins, and misquote them or omit parts.

CGT – Capital Gains Tax
Most British legal tender coins are exempt from UK capital gains tax, so it may be worth larger investors paying slightly higher premiums when buying. Other coins and bars are not exempt from CGT, but this might not matter for many smaller investors. 

This includes platinum, and base metal coins, not just silver and gold ones.

This guide is comprehensive, even though it mentions gold in its title, but might still benefit from further review:

https://www.chards.co.uk/blog/capital-gains-tax-on-gold-and-silver-bullion/4

Of course, you can read the HMRC website if you prefer a real challenge!

😎

If you wanted to spend even more time doing research you could tell us what happens when you barter or part-exchange CGT-exempt for non CGT-exempt bullion (and vice-versa)

[Pete]

I am sure a lot of old-timers ( I include myself ) are less concerned about paying tax on capital gains - more looking for ways to offset capital losses if selling their silver now. Remember spot at round £30 and the scramble to buy anything that was on the shelves as silver was forecasted to be heading so much higher. 

[ZRPMs]

2 minutes ago, Anteater said:

If you wanted to spend even more time doing research you could tell us what happens when you barter or part-exchange CGT-exempt for non CGT-exempt bullion (and vice-versa)

When bartering, both parties should assign a value to their item/ items. Usually both parties end up having a similar value for their goods. It's then up to the individuals to then declare to HMRC the value they had for their item. Any increase then on CGT exempt items would not be included in your capital gains for that tax year. However, non CGT exempt bullion, Any increase would be included and would be taken from your allowance. Care has to be taken that the value that is assigned is reflective of the market value should the items have been sold instead of swapped or exchanged.

Not a tax expert or adviser. This is only how I understand it. I could be wrong, But I have asked the question in the past and its how the accountant explained it to me. Please do your own research as things change and my understanding may be at fault.

[Anteater]

2 minutes ago, ZRPMs said:

When bartering, both parties should assign a value to their item/ items. Usually both parties end up having a similar value for their goods. It's then up to the individuals to then declare to HMRC the value they had for their item. Any increase then on CGT exempt items would not be included in your capital gains for that tax year. However, non CGT exempt bullion, Any increase would be included and would be taken from your allowance. Care has to be taken that the value that is assigned is reflective of the market value should the items have been sold instead of swapped or exchanged.

Not a tax expert or adviser. This is only how I understand it. I could be wrong, But I have asked the question in the past and its how the accountant explained it to me. Please do your own research as things change and my understanding may be at fault.

This makes sense and I guess value for bullion is fairly easy to establish (harder for numismatics). I guess you'd just keep the message history/logs as records?

Edited December 20, 2022 by Anteater

[LawrenceChard]

1 hour ago, ZRPMs said:

Thanks

Thanks Lawrence. I hadn't intended on giving a concise Tax position on gold and silver. It was only a 2:00am ramble. Sorry to all for missing out bits but I Mostly wanted to point out the VAT status of silver. I know there are some exemptions as well. I suppose I went at it from a personal point of view for why I thought gold was my preference, even though I have silver, also when pointing out CGT it was only that it should be taken in to consideration as we all have annual allowances also. I've been selling a couple of properties lately and my allowance has been gobbled up so it was more on my mind.

I have used a lot of your info recently. I have called Chards recently. I'll leave it until the new year but I do have some purchases in mind. I can't sing their praises enough. Always very helpful on the phone and amongst the most reasonable on price. 

That's great to hear, but...

No wonder I have to make my own cup of tea, because everybody is too busy to make me one!

😎

[LawrenceChard]

41 minutes ago, Anteater said:

If you wanted to spend even more time doing research you could tell us what happens when you barter or part-exchange CGT-exempt for non CGT-exempt bullion (and vice-versa)

I  can tell you without needing to do any further research.

When you barter or part-exchange, you are deemed to have made a "disposal", therefore any profit should be calculated based on the price or value at the time of disposal.

😎

[nunoelias]

Cheers!

To add my 2 cents, I only own silver bars and pretty happy about them (I really can't afford gold at this point).

However I always buy them from second hand markets and avoid vendors + VAT. Sometimes I find pretty decent deals, my first 1kg silver bar was 750€ total cost.
Then my second purchase was a 100g silver bar, which cost me 85€ in total. 

There are people (at least in my country, Portugal) trying desperately to liquidate their assets right now. And most of them have to wait months until someone buys their silver pieces, even at fair prices, also because very few portuguese are interested into precious metals. Therefore I feel that good prices aren't hard to find or negotiate.

IMO Vendors are only useful if you want to gift a brand new piece to someone special.