Is silver subject to VAT and capital gains tax in the UK?

Investment gold is exempt from VAT in the UK, but silver is not. New silver bars and coins bought from a UK dealer for delivery normally include VAT at the standard rate of 20%, which is a large hurdle before any price gain covers your costs.

Some dealers offer secondary-market coins sold under the VAT margin scheme, where VAT is charged only on the dealer's margin rather than the full price. Others offer storage in bonded vaults outside the UK, where VAT may not apply while the metal stays in storage. Both options have their own costs and conditions, so read the terms carefully.

Coins that are UK legal tender, such as the silver Britannia, are exempt from capital gains tax on any profit when sold. Silver bars and foreign coins do not share this exemption, so gains on those may be taxable once your total gains for the year exceed the annual exempt amount.

This is why the Britannia is a common choice for UK investors despite carrying a higher premium than a bar of similar weight.

• Silver Britannia: CGT-exempt as UK legal tender
• Silver bars: potentially subject to CGT on gains
• Foreign coins (e.g. Maple Leaf, Eagle): potentially subject to CGT
• All new silver from UK dealers: usually includes 20% VAT

Save invoices showing what you paid, including VAT and delivery, and the date of each purchase. If you ever need to work out a taxable gain, those records make it straightforward.

Tax rules and allowances change, and personal circumstances differ. Check current guidance from HMRC or speak to a qualified adviser before making decisions based on tax treatment.