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Inheriting Sovereigns and other british coins and looking to sell


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Not sure if this is the right place to post this but I was just wondering if I was to inherit Sovereigns and other silver, gold coins, mainly british coins. Does anyone know if I would have to declare these on a self assesment if I was to look to sell these down the line. I know Sovs are capital gains tax free, but if i was to inheirt and sell these would I have to declare it?

If there is already a post on this can someone point me in the right direction.

Thanks again all

 

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By inheritance do you mean though the passing of someone or receiving as a gift ?
In a will you can receive anything but if the estate exceeds inheritance tax thresholds things get more complicated.

You are liable for capital gains tax on profits if in a given year your gains exceed a threshold.
You can also double this if you are married.

I believe ( but check accuracy ) that if you inherit or are gifted goods you can value them at current levels.
So say you received 100 sovereigns in a will.
On the date take a value by checking a few dealer sites.
Record this as a true value.
If selling later at a higher price then use the difference as your gain so unlikely to be caught by tax.

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10 minutes ago, Pete said:

By inheritance do you mean though the passing of someone or receiving as a gift ?

More as passing but say if I was to receive the sovereigns prior to passing and then sell them would this need to be declared as sovs are capital gains tax exempt?

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3 hours ago, darkninja1985 said:

More as passing but say if I was to receive the sovereigns prior to passing and then sell them would this need to be declared as sovs are capital gains tax exempt?

British coins are CGT free. 
Don't mention this elsewhere and if you do inherit and want to sell, then sell them here. 
https://www.thesilverforum.com/forum/13-united-kingdom-ungraded/

 

Edited by sixgun

Disclaimer: Everything I post is for entertainment purposes only - it is not to be taken seriously. There is no intent to incite violence or hate of any kind, nor do I have any intent to incite any other crime or non-crime in any country in the world. It is not my intent to slander, harass or defame anyone dead or alive. 

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5 hours ago, darkninja1985 said:

More as passing but say if I was to receive the sovereigns prior to passing and then sell them would this need to be declared as sovs are capital gains tax exempt?

Depends on value, there are limits to tax free gifting and a threshold on an estate becoming subject to inheritance tax

"It might make sense just to get some in case it catches on"  - Satoshi Nakamoto 2009

"Its going to Zero" - Peter Schiff 2013

"$1,000,000,000 by 2050"  - Fidelity 2024

 

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5 hours ago, darkninja1985 said:

More as passing but say if I was to receive the sovereigns prior to passing and then sell them would this need to be declared as sovs are capital gains tax exempt?

If someone gifts assets e.g. a collection of sovereigns other than to their immediate spouse, then dies shortly thereafter the gift, if found or declared, falls into the deceased "estate" for inheritance tax purposes. All assets transfer to a spouse without IHT becoming due on first death so who is the owner of the coins ? Transferring to a spouse before death can be smart in some situations. If the person goes into residential care the local authorities will also dig deep and want their pound of flesh.
The person making the gift needs to survive 7 years before the gift is excluded from the estate.
IHT is a complex topic and there are allowances including primary residence but with so many properties nowadays breaching the caps, many people are falling into this tax which is 40%.
If you are "inheriting" a significant value you need to take professional advice as there are methods to avoid being chased for IHT if an estate is taxable. You don't want to find that even after you have sold the sovereigns that the Revenue comes knocking on your door years later demanding 40% tax to be paid within a few weeks. You do not need to worry about capital gains tax as sovereigns are exempt but you really need to check out IHT liability if an estate is valued above the IHT threshold.
Who is aware of the coins and is there a paper trail ?
If not obvious then who needs to know ?

All my comments are made with very limited knowledge and must not be taken as financial advice.

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As far as I know the amount of Sovs equates to around £7k, the only people aware of the coins would be myself, the other party (father) and the bullion dealer from where these were purchased.

Is the IHT threshold £325k? If so I feel the estate would fall under this amount as he currenlty rents, I'm currently holding these as safe keeping for him.

 

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