Investment gold

V4.186 Exemption—investment gold

EU legislation

The exemption for investment gold is derived from Directive 2006/112/EC, arts 344–3561, which deals with the definition of investment gold, the exemption of supplies, the option to tax such supplies, the right of deduction2 and special obligations for investment gold traders3.

UK legislation—VATA 1994, Sch 9, Group 15, items 1 and 2

With effect from 1 January 2000, supplies of 'investment gold' are exempt from VAT4. Also exempt are:


    (1)     the grant, assignment or surrender of any right, interest, or claim in, over, or to, investment gold if the right, interest, or claim is, or confers, a right to the transfer of the possession of investment gold5, and


    (2)     the supply, by a person acting as agent for a disclosed principal, of services consisting of:


      (a)     the effecting of a supply falling within the above provisions that is made by or to his principal, or


      (b)     attempting to effect such a supply that is intended but is not in fact made6

The 'grant, assignment or surrender of any right, interest', etc does not include the grant of an option, or the assignment or surrender of a right under an option at a time before the option is exercised7. A supply of this description includes supplies of unallocated investment gold (ie gold which is an unidentifiable part of a larger stock held by the supplier), loans, swaps, and forward and future contracts concerning investment gold8.

The effect of the provisions concerning agents is that if

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial