If VAT does get reduced, what happens to silver/platinum?

[Slam]

Hi All,

As there is chatter about VAT being reduced have you stopped buying silver/platinum?

If VAT is reduced what will happen to silver/platinum? Would if be a simple reduction of VAT or do you see premiums increasing?

Previous years when VAT was reduced for a year what happened with PM? did they increase/decrease in value?

I assume its not as simple as one would think it would be?

Thanks

Slam

 

 

[modofantasma]

Interesting topic I'm keen to hear what others say.

If premiums on silver did not increase to fill the void and we were seeing current retail prices minus 20% the cost Vs spot price still seems incredibly high compared to gold for eg. 

2nd hand sellers would surely need to bring prices down to make sales or else why not just go to a dealer? 

[Rains]

1 hour ago, Slam said:

Hi All,

As there is chatter about VAT being reduced have you stopped buying silver/platinum?

If VAT is reduced what will happen to silver/platinum? Would if be a simple reduction of VAT or do you see premiums increasing?

Previous years when VAT was reduced for a year what happened with PM? did they increase/decrease in value?

I assume its not as simple as one would think it would be?

Thanks

Slam

 

 

Depends how much its reduced by if premiums stay the same but vat is 5% i would be keen on both silver and plat where did you hear this from ?

[Slam]

3 minutes ago, Rains said:

Depends how much its reduced by if premiums stay the same but vat is 5% i would be keen on both silver and plat where did you hear this from ?

Due to cost of living crisis the government have been considering it I believe, 

https://www.reuters.com/world/uk/uks-liz-truss-considers-5-cut-vat-if-she-becomes-pm-telegraph-2022-08-27/

there has been other articles. Might be a no go at the moment though but thought if this will be in the plans for the future and somewhere I did read the current chancellor is considering it. It was in the same article where it mentioned he just got rid of the cap to bankers bonuses. 

Be interesting to know what previously happened with PM when this happened. I assume the VAT reduction would be on certain items to help cost of living and not PM?

 

[HerefordBullyun]

1 minute ago, Slam said:

Due to cost of living crisis the government have been considering it I believe, 

https://www.reuters.com/world/uk/uks-liz-truss-considers-5-cut-vat-if-she-becomes-pm-telegraph-2022-08-27/

there has been other articles. Might be a no go at the moment though but thought if this will be in the plans for the future and somewhere I did read the current chancellor is considering it. It was in the same article where it mentioned he just got rid of the cap to bankers bonuses. 

Be interesting to know what previously happened with PM when this happened. I assume the VAT reduction would be on certain items to help cost of living and not PM?

 

Considers is political speak for broken promises - spin n BS..... Shes in the chair now....

[Slam]

There has been talks about 10% reduction but I believe whatever the reduction they will counter it the year after anyways so long term we will be paying more.

ie Reduction to 15% but then year later VAT will be 22.5% and stay there. Just like it was reduced before to 15% but then now at 20%. Previously Im sure it was constant at 17.5%?(I wasn't old enough to care so didn't take note of that. Correct me if Im wrong.)

[Rains]

3 minutes ago, HerefordBullyun said:

Considers is political speak for broken promises - spin n BS..... Shes in the chair now....

 

This pretty much unless they can profit it 

[HerefordBullyun]

2 minutes ago, Rains said:

 

This pretty much unless they can profit it 

Here you go more spin, in todays telegraph - note COULD - she cant cut everything - its all psychological operations to try and win favour and grace!

[Slam]

4 minutes ago, HerefordBullyun said:

Considers is political speak for broken promises - spin n BS..... Shes in the chair now....

Definitely, but this could be a tool soon enough as there will be uproar in the next few months to years, this to make the masses settle down and then this will be a reality. I'm just thinking about recent energy prices uproar, this has quiet down a little bit even though prices are still higher than last year and profits/tax are still higher than ever. Its a quick slight of hand tactic I see. That's my opinion though

[LawrenceChard]

On 21/09/2022 at 09:04, Slam said:

Hi All,

As there is chatter about VAT being reduced have you stopped buying silver/platinum?

If VAT is reduced what will happen to silver/platinum? Would if be a simple reduction of VAT or do you see premiums increasing?

Previous years when VAT was reduced for a year what happened with PM? did they increase/decrease in value?

I assume its not as simple as one would think it would be?

Thanks

Slam

Most dealers would maintain the same VAT exclusive price, but charge the new lower VAT rate.

So if we were selling 2022 silver Brits for £20 plus VAT @ 20% = £24 before, they would be:

£20 plus VAT @ 15% = £23 after.

Secondary market prices would move closer to that.

Gold would still be better for investment!

😎

Edited September 25, 2022 by LawrenceChard

[LawrenceChard]

6 minutes ago, HerefordBullyun said:

she cant cut everything

I own up to misreading that at first glance.

No prizes for guessing what I thought it said!

 

[HerefordBullyun]

Governments are very good at  telling you there's more jam tomorrow. Tomorrow never comes.

Having worked in the army, the amount of ministers came up to us backslapping us saying how great we are. Because we were achieving something with nothing, then telling us there was more jam tomorrow. Not once did I see said jam. The yanks used to call us borrowers on operations. 

We used to call civil servants, the SA80, why? because its doesn't work and you cant fire it! Loads of them on high paid jobs or consultants milking the MOD for overpriced c**p. Its a farcical gravy train!

[Petra]

2 hours ago, Slam said:

There has been talks about 10% reduction but I believe whatever the reduction they will counter it the year after anyways so long term we will be paying more.

ie Reduction to 15% but then year later VAT will be 22.5% and stay there. Just like it was reduced before to 15% but then now at 20%. Previously Im sure it was constant at 17.5%?(I wasn't old enough to care so didn't take note of that. Correct me if Im wrong.)

They can now do what they like with VAT. Previously it was a European wide tax and was (is) governed from Brussels 

[Shinus73]

30 minutes ago, Petra said:

They can now do what they like with VAT. Previously it was a European wide tax and was (is) governed from Brussels 

VAT is entirely controlled by individual member states - hence the different VAT rates across the EU.

[StackemHigh]

I would expect no change in pricing.

Lower VAT = higher premiums = same price.

[Pete]

I would like to see a reduction in VAT for basics as costs continue to rise.
I will however be p!ssed if there is a reduction in the next week or so having just paid full VAT on Tudor Beasts silver and platinum coins that have yet to be delivered.

[JunkBond]

38 minutes ago, Shinus73 said:

VAT is entirely controlled by individual member states - hence the different VAT rates across the EU.

Not quite true my old fruity.

"Under EU rules, countries must apply a minimum standard VAT rate of 15%. They have an option of applying one or two reduced rates, no lower than 5%, to certain specified goods on a pre-approved list."

[dicker]

My guess is that food, energy and fuel will get a 10percent VAT cut.

[Shinus73]

2 hours ago, JunkBond said:

Not quite true my old fruity.

"Under EU rules, countries must apply a minimum standard VAT rate of 15%. They have an option of applying one or two reduced rates, no lower than 5%, to certain specified goods on a pre-approved list."

True enough - 'Although VAT is charged throughout the EU, each EU country is responsible for setting its own rates'. 

[Petra]

4 hours ago, Shinus73 said:

VAT is entirely controlled by individual member states - hence the different VAT rates across the EU.

Apart from being irrelevant as we are no longer in Europe, there were rules and minimum VAT etc. rules that had to be followed

[SidS]

Pity we can't just scrap VAT altogether.

[GoldStatue]

2 hours ago, SidS said:

Pity we can't just scrap VAT altogether.

Truth is you'll just get taxed another way instead. I've heard that in the states in the US that don't have a sales tax they just have lots of other taxes or higher rates.

I'm not convinced the government wants you to save in precious metals, they prefer you to spend, save in shares or buy government bonds.

I just can't see that they have any incentive to lower taxes on precious metals for the average joe and for most companies it doesn't make much of a difference anyway.