Investment Gold Definition VAT Exempt in UK & EU

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What is Investment Gold?
From January 1st 2000, the VAT rates on "Investment Gold" in the UK and the rest of the EU were harmonised by making it exempt. Exemption has a similar effect o making it zero rated, although there are minor technical differences, which do not need to concern the investor.

For the purpose of the new VAT exemption, investment gold is defined as:

Gold of a purity not less than 995 thousandths that is in the form of a bar, or a wafer, of a weight accepted by the bullion markets;

A gold coin minted after 1800 that-
is of a purity of not less than 900 thousandths,
is, or has been, legal tender in its country of origin, and
is of a description of coin that is normally sold at a price that does not exceed 180% of the open market value of the gold contained in the coin; or

A gold coin of a description specified in UK Customs Notice 701/21A Investment gold coins, and subsequent amendments. This list is basically an expansion of (b) above, but stated in a more long-winded and bureaucratic way.

Capital Gains Tax
In addition to Value Added Tax exemption for investment gold, legal tender sterling gold coins, including sovereigns and Britannias are also exempt from CGT Capital Gains Tax.

About the Author
Lawrence Chard is a director of Chard Coins of Blackpool, England, and has over 42 years experience in numismatic and bullion coins.
Chard have maintained a dealing service for both collectors and investors in bullion and numismatic coins. During the period from 1965 to 1971, we were one of only a small number of dealers who were granted a dealers licence.

All our images and text are copyright.

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