Buying/Selling Silver Bullion - VAT question.

[HaroldLloyd]

Hello again Consumer Action Forum!

Not sure this is the correct forum to place on, so feel free to move.

I've been given a (relative to me) large amount of silver bullion and I need to sell it to help service my debts, (see my previous thread!)

However, when my friend bought it they had to pay 20% VAT as silver is not CGT exempt, unlike gold. 

So the price they paid originally was slightly above spot price+ 20% VAT.

Now to sell it, it would be slightly below the spot price so a loss anyway, but when you add on the 20% VAT originally paid it's a MASSIVE loss.

Question - is there anyway I can sell and add the VAT back on to the buyer in the same way my friend had to pay when they bought it, so at least we break even?

 

 

[Ethel Street]

I'm not a tax expert of any sort but I don't think you are correct in saying that gold is exempt from CGT but silver is not. 

According to the Royal Mint - Bullion & Capital Gains Tax (CGT) | The Royal Mint - they are both treated the same.  The difference in CGT laibility depends not on which metal they are made of but whether they in the form of coins that are legal tender in the UK, or whether they are bullion held in other forms (gold/silver bars etc).  If they are gold or silver coins produced by the Royal Mint, and therefore technically legal tender in the UK, they are CGT exempt. But gold or silver held in any other form is liable to CGT, and CGT must be paid at the point of sale.

Is your silver held as legal tender coins, or is it subject to CGT?

As for VAT, not something I know much about, but surely only someone who is a trader registered with HMRC for VAT can add VAT to the price of what they sell? Are you a trader registered fo VAT?  If not I wouldn't have thought you had the option of adding VAT do you? 

[theoldrouge]

Only a VAT reg trader can add the VAT
Coins such as Gold/Silver Britannia and Gold Sovereigns are “legal tender”
There is a method of sale for you to obtain a price including the added on VAT
Will PM dx with the link 

[HaroldLloyd]

Thanks for advice. Much appreciated.