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Investment guide
VAT on Gold and Silver
Investment gold is VAT-exempt in the UK. Silver is not. What qualifies, what does not, and why it changes the maths on silver.
Investment-grade gold is exempt from VAT in the United Kingdom. Silver, platinum and palladium are not — they are charged at the standard rate, currently 20%. For a UK buyer this is the single biggest practical difference between buying gold and buying anything else in the bullion cabinet.
What counts as investment gold
The exemption is not automatic on anything gold-coloured. HMRC applies specific tests, and they differ for bars and for coins.
Bars and wafers
Gold of a purity of not less than 995 thousandths, in the form of a bar or wafer of a weight accepted by the bullion markets.
In practice, any cast or minted bar from an LBMA-approved refiner at 999.9 fineness comfortably clears this.
Coins
A gold coin qualifies as an investment gold coin if it:
- is of a purity of not less than 900 thousandths;
- was minted after 1800;
- is, or has been, legal tender in its country of origin; and
- is normally sold at a price not exceeding 180% of the open market value of the gold it contains.
HMRC also publishes a list of coins it accepts as investment gold. A coin on that list qualifies regardless of the four tests above, which makes the list the practical reference point for most buyers.
The 180% rule, and what it catches
This is the condition that surprises people. A coin can be gold, legal tender and modern, and still fall outside the exemption if it habitually sells far above its metal value — because of rarity, presentation packaging or collector demand.
It is a useful line to keep in mind when comparing a bullion coin against a limited-edition or proof version of the same design. The bullion coin tracks the metal price; the proof carries a premium that may take it outside investment gold altogether.
What does not qualify
- Silver in any form — coins, bars or rounds. Standard rate.
- Platinum and palladium. Standard rate.
- Jewellery, whatever its carat.
- Gold below the purity thresholds, or coins normally priced above the 180% ceiling.
Why this matters so much for silver
VAT on silver is charged at purchase and a private individual cannot reclaim it. In plain terms, the silver price has to rise appreciably before a holding is back to what it cost — and that is before the dealing spread is counted.
This does not make silver a poor holding. It does mean silver suits a longer horizon than gold, and that anyone weighing the two should compare after-VAT figures rather than headline metal prices. Our gold versus silver guide goes into the practical consequences.
Storage is a service, and services carry VAT
The exemption attaches to the metal, not to what you do with it. Vaulted storage is a service, so VAT applies to the storage fee in the normal way — whichever metal is being stored, and regardless of whether the metal itself was VAT-exempt when you bought it. Your invoice shows the split.
VAT and Capital Gains Tax are separate questions
These get conflated constantly. VAT is charged when you buy. Capital Gains Tax applies to a gain when you sell. They are decided by different tests:
| VAT on purchase | CGT on gains | |
|---|---|---|
| Gold Britannia or Sovereign | Exempt | Exempt |
| Gold bar | Exempt | Chargeable |
| Krugerrand, Maple Leaf | Exempt | Chargeable |
| Silver Britannia | Charged at 20% | Exempt |
| Silver bar | Charged at 20% | Chargeable |
The CGT side turns on UK legal tender status, not on the metal. Our Capital Gains Tax guide covers it.
Sources
Gold imports and exports (VAT Notice 701/21) — GOV.UK
Investment gold coins (VAT Notice 701/21A) — GOV.UK
VAT rates — GOV.UK
Last reviewed 21 August 2026.
Important
This is general information, not tax advice. VAT treatment depends on the specific item and your circumstances, and the rules can change. Please take advice from a qualified accountant or tax adviser before acting.
Related products
This guide is general information, not personalised financial, investment, legal, accounting or tax advice. Tax treatment depends on your individual circumstances and may change. Please take independent advice before making a decision.
