Bullion rounds vs Bullion silver coins.

[Sharron]

Hi... I wanted to know if Bullion coins 1 0z silver I.e Britannias are better to collect and easier to sell than Bullion rounds without Prince Charles on the reverse? Thankyou for your advice.

[SilverPlatinum]

Bullion Coins are always better selling and hold more value later in life than bullion rounds.

[SilverPlatinum]

Look for the Britannia 2023 with the Queen effigy. I think this will hold more value later in life considering it's the last Britannia with the Queen effigy on it:

[Petra]

Silver Britannias will always be a great coin to collect and sell on, however, there are obviously loads of different types of silver rounds and some of those become quite collectible, just a matter of finding the right ones. Personally I think that some of the rounds look terrible and wouldn’t give them house room, but some people obviously love them and there will always be a market for them. Perhaps, stick to Britannias and if you see any silver rounds you like, then buy some, just a little mix and match.

[Scuzzle]

There's always the capital gains tax free aspect to official UK coinage to consider as well.  The Britannias will be capital gain tax free where gereric rounds are not which helps if they ever do increase in price massively and / or you intend to leave them to your kids one day.

[sixgun]

It depends on the rounds.
Rounds are not as common in the UK. If you go to dealer sites you will see that rounds are a lot sparser. This means they can go for good prices in the aftermarket.
Atkinsons have quite a few on offer at the moment - i think this is unusual - they are a touch more than KCIII coins.

Silver Coins | Atkinsons Bullion

If the round has a pleasing design it will probably do better than the run of the mill coin, b/c the coin is run of the mill.

As far a CGT goes - we have talked about this a lot. You are a collector. These items are part of your collection - they are your personal private property. Take a look at this post (below) and my post a couple of posts after this. I believe rounds (which are not legal tender or else they would be coins) are Chattels. As long as when you sell them each sale is not more than £6000 then it is you selling your private personal property and there is no requirelemt to declare this. If you split the lots you sold to one person into multiple £5999 lots to get round declaring the sales, HMRC says you must declare these sales. By the looks of things you should have UK coins or silver rounds / bars. Non-UK coins are chargeable under CGT.  

 

[Silverlocks]

13 hours ago, Sharron said:

Hi... I wanted to know if Bullion coins 1 0z silver I.e Britannias are better to collect and easier to sell than Bullion rounds without Prince Charles on the reverse? Thankyou for your advice.

Britannias are legal tender in the UK, as are other coins such as the Queen's beasts.  Pretty much any coin produced by the Royal Mint will fall under this category, but not coins produced by other manufacturers.  For example, American Silver Eagles aren't legal tender in the UK.

The important thing about UK legal tender is that under British law it is exempt from capital gains tax.  Coins from other domiciles don't get this distinction, so from the perspective of UK law, coins vs. rounds is a moot point.  'Rounds' is a distinction mainly arising from U.S. law, in which items that are not legal tender cannot be sold as coins.

The other aspect of tax to consider W.R.T. UK law is VAT.  Investment gold (There is a specific definition in the UK, which includes most gold coins) is not subject to VAT, although gold jewellery and all other applications of gold are.  All other metals, including silver and platinum, are subject to VAT in the UK.  This makes silver less cost effective as an investment in the UK than in other countries where VAT does not apply to silver.  In particular, the U.S. does not have VAT, so investment advice about silver from U.S. Youtubers should be taken with a pinch of salt.

https://www.gov.uk/guidance/gold-acquisitions-imports-investments-and-vat-notice-70121

https://www.gov.uk/guidance/investment-gold-coins-and-vat-notice-70121a

 

Edited August 19, 2023 by Silverlocks

[srh2023]

14 hours ago, SilverPlatinum said:

Look for the Britannia 2023 with the Queen effigy. I think this will hold more value later in life considering it's the last Britannia with the Queen effigy on it:

Not only is it the last Britannia with the effigy of QEII on the obverse but it is dated 2023, a year in which QEII was not actually the reigning monarch at any point. 

[sixgun]

There isn't really a moot point when looking at rounds. Rounds aren't legal tender - they aren't coins - they are shiny things with patterns stamped on them that people collect. As long as you are acting as a collector, as a private individual, not involved in commerce, they are private possessions and that means chattels.

So collect away UK coins, rounds foreign and domestic, along with bars (other than non-UK coins bars).

UK coins are CGT exempt and rounds / bars are chattels. You can sell lots of chattels of less than £6000 - as many as you like in a tax year and you don't declare this.

As your accountant - look it up. Members get too bothered about CGT. Most of us are private individuals, we are collectors rearranging our private collections - non of HMRC's business.

Edited August 19, 2023 by sixgun

[Napo]

Before, the CGT aspect on UK gold and silver coins did not mean that much to me. Because the CGT threshold is quite high (£12,300) until which CHT applies. In practice you are not very likely to reach it when selling your gold / silver Britannias to cash out your profit.

So if you are purely declaring Capital Gains in a tax year in the future (let’s say in 10 - 15 years), and the price of silver went up, in practice to reach such threshold when you have to declare and pay CHT:

- how much profit per coin would it need to be?

- how many coins would you have to sell to reach this scenario?

- what the silver price would have to be?

 

That being said, the CGT threshold has apparently decreased, and will likely decrease again. So it might be important to keep this in mind stackers! ☝🏻

https://www.thetimes.co.uk/money-mentor/article/guide-capital-gains-tax/#:~:text=How much you can earn,this amount will be taxed.