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joeywoodland

How To Aviod Cgt On Gold/silver

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Hi my name is Joey, new to this forum and I’m seeking some general advice on whether it is possible to avoid or substantially reduce CGT on the sale of my gold and silver. I have quite a allot of Gold and some Silver which I plan on holding onto for while longer but since CGT is likely to go up to 40% I’m wondering how I can reduce the amount of tax I pay on the capital gain when i decide to sell. Does anyone have any advice for me in this area? I am aware that the Gold and Silver Britannia coins are CGT exempt as they are the legal tender but what about the Bars. I do have the coins but allot more weight in bars. Any help?

Thanks

Joey

Edit: spelt 'Avoid' wrong in the title.. sorry

Edited by joeywoodland

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You avoid CGT by not swapping it for paper money.

Yeah thanks for the help ... obviously i will one day want to swap it for paper money. Im just trying to find ways of reducing the CGT that would be payable.

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Yeah thanks for the help ... obviously i will one day want to swap it for paper money. Im just trying to find ways of reducing the CGT that would be payable.

Not easy. How much of a gain is your gold standing at? There is tax planning you can do to ensure that you will only pay at the 18% rate (even if you sell after the rate goes up) but you'd probably need to do it by Monday at the latest and it is quite expensive to implement.

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Hi my name is Joey, new to this forum and I’m seeking some general advice on whether it is possible to avoid or substantially reduce CGT on the sale of my gold and silver. I have quite a allot of Gold and some Silver which I plan on holding onto for while longer but since CGT is likely to go up to 40% I’m wondering how I can reduce the amount of tax I pay on the capital gain when i decide to sell. Does anyone have any advice for me in this area? I am aware that the Gold and Silver Britannia coins are CGT exempt as they are the legal tender but what about the Bars. I do have the coins but allot more weight in bars. Any help?

Thanks

Joey

Edit: spelt 'Avoid' wrong in the title.. sorry

As far as the gold goes, if you want to exchange for cgt exempt coins you may find sovereigns easier to obtain than brittanias. This will work unless the rules are changed so that past gold sales attract cgt at the higher rate (unlikely imo). The current rules are such that so long as sovs/brittannias are legal tender (as at present) when you buy them, they will never attract cgt at the point of sale, unless the legal tender cgt exemption rule is itself changed. This would also amount to a retrospective taxation so again is quite unlikely imo.

Edited by salamander

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As far as the gold goes, if you want to exchange for cgt exempt coins you may find sovereigns easier to obtain than brittanias. This will work unless the rules are changed so that past gold sales attract cgt at the higher rate (unlikely imo). The current rules are such that so long as sovs/brittannias are legal tender (as at present) when you buy them, they will never attract cgt at the point of sale, unless the legal tender cgt exemption rule is itself changed. This would also amount to a retrospective taxation so again is quite unlikely imo.

Exchanging gold bars for sovereigns would give rise to a CGT charge.

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Not easy. How much of a gain is your gold standing at? There is tax planning you can do to ensure that you will only pay at the 18% rate (even if you sell after the rate goes up) but you'd probably need to do it by Monday at the latest and it is quite expensive to implement.

Thanks for the replies guys. The gain is around £250,000. The problem is i dont want to sell just yet in order to avoid the new 40% CGT. I would like to hold on to these for a few more years and then sell. Only problem is i will then have to pay CGT at 40% if the rates go up. I have thought about trading for gold britannias but they are so much in demand that most places have sold out. Plus im not sure if i would actually be able to simply trade a bar of gold for gold coins without paying capital gains on the bars (i think).

Does anyone know of any tax planning stratagies that would allow me to pay a lower rate of CGT. Im new to the whole tax scene. What about if i store the gold offshore where CGT doesnt apply ... i guess that might not work since i purchased it while i was here in the UK. Anyone know of any Tax Advisors that could help me with this ?

Thanks

Joey

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Are silver Britannia coins CGT exempt? If so why are they vatable?

as far as im aware the silver coins (britannia's) are except from CGT as they are a legal tender. Im not sure about the VAT though

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  • 261 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
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      • up 5%



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