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The short answer: investment gold coins and bars are free from VAT in the UK. New silver coins and bars carry 20% VAT, and so do platinum and palladium. You don’t get VAT back when you sell, so silver has to rise further in price than gold before you make a profit. All the silver we sell is sold under the VAT margin scheme, so VAT is charged only on our margin, not on the full price.
VAT on precious metals at a glance
| What you buy | VAT in the UK |
|---|---|
| Investment gold coins, such as Sovereigns, Gold Britannias and Krugerrands | None |
| Investment gold bars | None |
| Gold jewellery and other gold that isn’t investment gold | 20% |
| New silver coins and bars | 20% |
| Silver coins sold under the VAT margin scheme, as all our silver is | VAT only on the dealer’s margin, included in the price |
| Platinum and palladium coins and bars | 20% |
| Selling your own coins to a dealer as a private person | No VAT to pay |
What counts as investment gold?
HMRC treats gold as investment gold, and so VAT-free, if it meets these rules:
- Coins: at least 90% pure gold, minted after 1800, legal tender now or in the past in their country of origin, and normally sold for no more than 180% of the value of the gold they contain. Sovereigns, Gold Britannias, Krugerrands, Maple Leafs and Philharmonics all qualify.
- Bars: at least 99.5% pure gold, in a weight accepted by the bullion markets.
Gold jewellery, and gold items valued mainly for their design rather than their metal, are not investment gold, so they carry 20% VAT.
Why VAT matters more than it looks
When you sell silver back to a dealer, the price is based on the silver spot price, which doesn’t include VAT. Any VAT you paid when you bought is gone. With new silver at the full 20%, the price has to rise by roughly that much before you break even, before you even count the dealer’s premium.
£1,200 on new silver coins
£1,000 of silver
£200 of what you pay is VAT, which you won’t get back when you sell.
£1,200 on gold coins
£1,200 of gold
No VAT, so all your money goes into the coin itself.
The example uses new silver at the full 20% VAT and leaves out dealer premiums, which apply to both metals. Under the margin scheme, the VAT included in the price is much smaller.
That doesn’t make silver a bad buy. It costs far less per ounce, so it’s easier to start small, and many buyers expect its price to move more than gold’s. It just means silver usually suits people planning to hold for longer.
Ways buyers reduce VAT on silver
- Buy silver sold under the margin scheme. Under the VAT margin scheme, VAT is charged only on the dealer’s margin rather than the full price. All the silver we sell is sold this way, so you never pay 20% VAT on the full value.
- Storage in a bonded vault. Some investors buy silver held in a bonded vault, where VAT isn’t charged while it stays there. If you take delivery in the UK, VAT is due.
- Buy gold instead. If avoiding VAT matters most to you, investment gold has none at all.
VAT and Capital Gains Tax are different taxes
VAT is charged when you buy. Capital Gains Tax is charged on your profit when you sell. A Silver Britannia carries VAT when you buy it, but any gain on it is free from Capital Gains Tax because it’s UK legal tender. Our guide Are Silver Britannias CGT-free? explains how that works.
Frequently asked questions
Is there VAT on silver coins in the UK?
Yes. New silver coins and bars carry 20% VAT. Coins sold under the margin scheme include VAT only on the dealer’s margin.
How is VAT charged on your silver?
We sell all our silver under the VAT margin scheme. VAT is included in the price you see and is charged only on our margin, so there is no extra VAT to add at checkout.
Is there VAT on gold Sovereigns?
No. Sovereigns are investment gold coins, so they are VAT-free.
Do I get the VAT back when I sell my silver?
No. If you sell as a private person, the buying price is based on the spot price without VAT, and you can’t reclaim any VAT you paid.
Do I pay VAT when I sell my coins to a dealer?
No. As a private seller you don’t charge or pay VAT on the sale.
Buying silver?
All our silver is sold under the VAT margin scheme, with UK delivery. Browse our silver coins and bars, or read our silver buying guide to compare your options.
Shop silver coinsSilver buying guideThis guide is general information about UK VAT as of October 2026, not tax or financial advice. Tax rules can change and depend on your circumstances. Sources: HMRC VAT Notice 701/21A (Investment gold coins) and HMRC VAT Notice 701/21 (Gold).