Gold ― investment gold and gold coins

Produced by Tolley

The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Gold ― investment gold and gold coins
  • What is investment gold?
  • Investment gold coins
  • Margin schemes and investment gold coins
  • What supplies can be exempt from VAT?
  • Notifying HMRC
  • Opting to tax
  • Reclaiming input tax
  • Input tax partly attributable to exempt supplies
  • Invoicing
  • More...

Gold ― investment gold and gold coins

This guidance note provides an overview of the VAT treatment of supplies of investment gold and gold coins. For supplies of non-investment gold see the Gold ― supplies of non-investment gold guidance note for more information.

See the Flowchart ― is the supply of gold within the scope of UK VAT? for further assistance on determining the correct VAT treatment of the transaction.

What is investment gold?

Supplies of investment gold are exempt from VAT (subject to the option to tax explained below).

Investment gold is:

  1. gold with a purity of not less than 995 thousandths supplied either as a bar, wafer or of a weight acceptable to the bullion markets

  2. a gold coin minted after 1800 that meets these conditions:

    1. purity is not less than 900 thousandths

    2. is or has been treated as legal tender in its country of origin

    3. a coin that will not normally be sold at a price exceeding 180% of the open market value of the actual gold contained in the coin

      HMRC guidance describes the normal selling price as follows:

      ‘This is the price that can most usually be demanded for a particular type of coin. It does not matter that an individual coin is of special interest to collectors, if the usual price of the coin type falls within 180% of the value of the gold contained therein, all coins of that type will be exempt. Similarly, if a coin type is usually valued at more than 180% of the gold value, because of its interest to collectors, but an individual coin is in such poor condition that it is worth less than 180% of its gold value, that coin (like others of its type), will be subject to VAT at the standard rate.’

  3. Investment gold coin. See below

Investment gold coins

Investment gold coins are:

  1. a gold coin as described above

  2. a gold coin contained in the list produced by the EU commission (see below)

HMRC

Popular documents