Sharp Focus on Silver Special VAT Scheme
The Special VAT Scheme, or Margin Scheme, is a savvy way to purchase pre-owned precious metals, whilst benefitting from tax efficiencies the scheme offers. In this article we are going to outline what the scheme is, how it works and how investors can access products under the scheme.
What is the Special VAT Scheme?
The Special VAT Scheme is facilitated by HMRC and allows VAT-registered traders to sell-on goods they have bought from the public, whilst applying a special treatment on the VAT. This means that instead of charging consumers VAT on the full price of the second-hand goods (as used to be the case prior to the scheme’s introduction), VAT is only applied on the margin. This can constitute significant savings for the would-be investor, and products which are sold under the scheme tend to sell-out very quickly.
Which Metals Fall Under the Scheme?
All precious metals except ‘investment gold’ fall under the scheme. Investment gold in the form of bullion coins, or bars, is already exempt from VAT in the UK and therefore the benefits of the scheme cannot be applied. At Sharps Pixley, we periodically offer silver under the Special VAT Scheme. It should be noted that if the buyer decides to sell-on, they are unable to claim for VAT on second hand items purchased under the margin scheme.
How Can I Purchase VAT-free Silver Under the Margin Scheme?
From time to time, Sharps Pixley offers silver bars and coins under the Special VAT Scheme. Although items under the scheme would be classed as ‘pre-owned’ this in no way diminishes their value: Sharps Pixley performs a series of non-invasive assay tests to authenticate purity levels and ensures rigorous quality control. Simply put, if we don’t deem the items to be in resalable condition, they will be sent back to the refinery to be melted down. Investors can benefit from some alluring tax benefits in purchasing items offered under the Margin Scheme, particularly if the items are also classified as exempt from Capital Gains Tax.
Please visit our web shop to see all products we currently have available under the scheme.
If you’d like to find out more about benefitting from VAT relief when vaulting silver with Sharps Pixley, click here.
For further information, or to speak with one of our experts, please call us on +44(0)20 7871 0532 or email us at [email protected].
