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Buying Gold as a Christmas Gift? Make Sure Itís Tax Free

Tuesday, December 19, 2017

If you’re a new or casual gold investor, and want to get the best deals on gold for your friends, relatives, or even yourself this Christmas, it might surprise you to hear that tax exemptions are available on a range of gold products.

With both gold coins and gold bars, tax free gold is available on various beautiful products, meaning you can get your gold investment for less – both for Christmas and throughout the rest of the year.

Here’s a look at the different taxes that might affect the price of your gold, and which products you can secure an exemption on.

VAT & tax free gold

VAT, or value added tax, is a flat tax rate which is charged on most goods and services at the point of purchase. Since it’s usually included in the price of products, you don’t always necessarily notice when you’re paying it, but chances are if you buy something online or on the high street, 20 per cent of the price is VAT.

Luckily, there’s an EU-wide VAT exemption on ‘investment gold’, which, in effect is the majority of gold coins and all gold bars available on our website and a significant contingent of those commonly traded elsewhere.

CGT & tax free gold

Where VAT is charged on the purchase of a product, CGT, or Capital Gains Tax, is charged at the point of sale. Specifically, it is charged on any profits you make from the purchase. Luckily, CGT won’t affect the vast majority of small time gold investors, since there’s a personal allowance, which currently stands at of £11,300. Any profits made under this allowance remain CGT free.

If you bought gold worth £10,000, for example, and subsequently sold it for £21,300, you wouldn’t pay any CGT tax. If you sold it for £21,400, you would only pay CGT on the £100 profits you made over the allowance. This will likely be £10 or £20, depending on the income tax bracket you fall under.

There are some gold products that remain exempt from CGT, even over the tax free allowance. These, in general are legal tender gold coins produced by the Royal Mint, principally the Gold Sovereign and Gold Britannia.

Buy tax free gold with The Gold Bullion Company

There is a wide range of tax free gold products available on our website, all of which are clearly marked with the exemption they’re subject to.

Browse of our wide range of gold bar and gold coin products, and make sure any special gifts you’re buying for Christmas this year are tax free where possible.