scrappycocco Posted February 11, 2013 Share Posted February 11, 2013 Just wondering, why are dealers required to inform the revenue about gold purchases over 10k? Say if you bought sovereigns, aren't they cgt exempt and therefore what would be the point informing the revenue? Quote Link to comment Share on other sites More sharing options...
pyracantha Posted February 11, 2013 Share Posted February 11, 2013 Just wondering, why are dealers required to inform the revenue about gold purchases over 10k? Say if you bought sovereigns, aren't they cgt exempt and therefore what would be the point informing the revenue? So they know who to take it off when gold is repossessed. Probably something to do with money laundering regulations etc... Quote Link to comment Share on other sites More sharing options...
Gone baby gone Posted February 11, 2013 Share Posted February 11, 2013 Probably something to do with money laundering regulations etc... Yes, presumably many people will be buying the gold with cash - they'll be wanting to make sure it came from a legit source. Quote Link to comment Share on other sites More sharing options...
Guest unfunded_liability Posted February 11, 2013 Share Posted February 11, 2013 Just wondering, why are dealers required to inform the revenue about gold purchases over 10k? Say if you bought sovereigns, aren't they cgt exempt and therefore what would be the point informing the revenue? They're not and they don't. They are required by HRMC to record customer documentation for single transactions over £5K or a total of £10K transactions in a twelve month period, but they are not required to pass them on to anyone. Do you notify HMRC about my purchases ? (UK clients only) According to HMRC's regulations we will ask you for certified and recent proof of address and certified proof of identity when you make gold purchases worth 5,000 GBP in a single transaction or worth 10,000 GBP in several transaction in the course of 12 months. We will not proactively send these documents to HMRC but keep them on file together with your order details and invoice in case HMRC wishes to check. http://www.coininvestdirect.com/en/faq.html Quote Link to comment Share on other sites More sharing options...
pyracantha Posted February 11, 2013 Share Posted February 11, 2013 Yes, presumably many people will be buying the gold with cash - they'll be wanting to make sure it came from a legit source. I'm sure you realise I was being a little facetious but cash has nothing to do with my comment about money laundering. One of my local EA's has the following on all their RM listings: "1. MONEY LAUNDERING REGULATIONS: Intending purchasers will be asked to produce identification documentation at a later stage and we would ask for your co-operation in order that there will be no delay in agreeing the sale." As unfunded_liability has said, it's more about notifying HMRC about the transaction (ie the seller's details if over £10k worth) not the buyer. See Section 3.1 of: http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_CL_000104&propertyType=document A simple solution would seem to be to keep transactions <£10k and from different suppliers if you are worried HMRC might come after you. Quote Link to comment Share on other sites More sharing options...
Guest unfunded_liability Posted February 11, 2013 Share Posted February 11, 2013 (edited) I'm sure you realise I was being a little facetious but cash has nothing to do with my comment about money laundering. One of my local EA's has the following on all their RM listings: "1. MONEY LAUNDERING REGULATIONS: Intending purchasers will be asked to produce identification documentation at a later stage and we would ask for your co-operation in order that there will be no delay in agreeing the sale." As unfunded_liability has said, it's more about notifying HMRC about the transaction (ie the seller's details if over £10k worth) not the buyer. See Section 3.1 of: http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_CL_000104&propertyType=document A simple solution would seem to be to keep transactions <£10k and from different suppliers if you are worried HMRC might come after you. HMRC is not automatically notified of bullion transactions. When HMRC limits have been met or exceeded documentation must be recorded and kept by the dealer, that is all. 7.1 Records to be kept for gold delivered or taken away by your customer There is no mention in the above document of informing HMRC, just of recording documentation. Edited February 11, 2013 by unfunded_liability Quote Link to comment Share on other sites More sharing options...
pyracantha Posted February 11, 2013 Share Posted February 11, 2013 HMRC is not automatically notified of bullion transactions. When HMRC limits have been met or exceeded documentation must be recorded and kept by the dealer, that is all. 7.1 Records to be kept for gold delivered or taken away by your customer There is no mention in the above document of informing HMRC, just of recording documentation. Sure. 7.1 is about record keeping. I was looking at 3.1 which is about notification. "The first time that you make an exempt supply of investment gold which exceeds £5,000, or when the value of your supplies of exempt investment gold to any one customer is over £10,000 in any 12 month period, you must notify us within 28 days at the following address:" Am I misunderstanding this? Quote Link to comment Share on other sites More sharing options...
Guest unfunded_liability Posted February 11, 2013 Share Posted February 11, 2013 Sure. 7.1 is about record keeping. I was looking at 3.1 which is about notification. "The first time that you make an exempt supply of investment gold which exceeds £5,000, or when the value of your supplies of exempt investment gold to any one customer is over £10,000 in any 12 month period, you must notify us within 28 days at the following address:" Am I misunderstanding this? The dealer i.e. the supplier of investment gold, must send notification of themselves to HMRC. Quote Link to comment Share on other sites More sharing options...
pyracantha Posted February 11, 2013 Share Posted February 11, 2013 (edited) The dealer i.e. the supplier of investment gold, must send notification of themselves to HMRC. Exactly what I said at 9:02 PM which agrees with the OP's comment about dealers having to inform HMRC for transactions >£10k... However what has not been answered is the OP's original question. Why are they obliged to do so? Edited February 11, 2013 by pyracantha Quote Link to comment Share on other sites More sharing options...
Guest unfunded_liability Posted February 11, 2013 Share Posted February 11, 2013 (edited) Exactly what I said at 9:02 PM which agrees with the OP's comment about dealers having to inform HMRC for transactions >£10k... One of us has had a long day... ...and it's probably me Bed time Edited February 11, 2013 by unfunded_liability Quote Link to comment Share on other sites More sharing options...
Bear Hug Posted March 5, 2016 Share Posted March 5, 2016 Just out of interest, does gold counts towards savings when claiming any benefits? If it does, does it depend on whether it's just jewelry, coin or bar? Thanks Quote Link to comment Share on other sites More sharing options...
GinAndPlatonic Posted March 29, 2016 Share Posted March 29, 2016 Same reason Banks can inform on you if you regularly deposit £10k cash..To stop money laundering Quote Link to comment Share on other sites More sharing options...
Locke Posted April 4, 2016 Share Posted April 4, 2016 Same reason Banks can inform on you if you regularly deposit £10k cash..To stop money laundering >he actually believes that's why they want the records Quote Link to comment Share on other sites More sharing options...
GinAndPlatonic Posted April 5, 2016 Share Posted April 5, 2016 (edited) >he actually believes that's why they want the records Ey? could you explain that in English please Edited April 5, 2016 by GinAndPlatonic Quote Link to comment Share on other sites More sharing options...
Wahoo Posted July 1, 2016 Share Posted July 1, 2016 HMRC have implemented a new system called CONNECT which trawls through an individuals life-style. It looks at social media, purchases, spending etc etc. It looks at your life-style in greater detail every day. It will throw up a miss-match for investigation. Basically if you get a letter, you will be guilty. So 10K today, 5K tomorrow, 1K next month. If you're self employed, probably best to get insurance against investigation. Quote Link to comment Share on other sites More sharing options...
jimmy2x3 Posted April 4, 2019 Share Posted April 4, 2019 te boe dont like competition. gold is competition to made up ptetend money that they can inflate as these please. Quote Link to comment Share on other sites More sharing options...
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