Investment gold coins (VAT Notice 701/21A)

1. Overview

1.1 What this notice covers

This notice:

• explains that an investment gold coin is exempt from VAT and explains which coins can be considered as investment gold coins (in section 2)

• provides a list of investment gold coins whose supply is exempt from VAT (in section 3)

You should read this notice alongside Gold imports and exports (VAT Notice 701/21) which gives further information about dealing in gold coins.

1.2 Who should read this notice

You should read this notice if you’re a trader dealing in investment gold coins.

2. Investment gold coins

2.1 Definition of an investment gold coin

An investment gold coin is either:

• 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
  • 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

• a gold coin on the list in section 33.

You should treat coins outside these definitions as subject to VAT at the standard rate.

2.2 Coin types

All gold coins that have the same denomination (face value), size and gold fineness (purity) as those described at paragraph 2.1 and section 3, are exempt from VAT.

The definition for VAT purposes is wider than the one which coin experts (numismatists) normally use. This is because changes of superficial design do not alter the gold coin type or description.

A gold coin type may be a single issue for one year, or may have been produced for almost 2 centuries, as in the case of the British sovereign.

2.3 Selling price

Of the first 3 criteria in paragraph 2.1, only the selling price of the coin is subjective.

Coins are minted in various finishes and will be sold at a variety of prices. ExemptionIf exemption depended on the actual selling price of an individual coin this would lead to inconsistency. Administration of the exemption would become burdensome for traders and HMRC alike. For this reason, exemption depends on the ‘normal’normal selling price.

2.4 The ‘normal’ selling price

This is the price that can most usually be demanded for a particular type of coin.

IfIt does not matter that an individual coin is of special interest to collectors, if the usual price of the coin type falls within 180% of the value of the gold itcontained contains,therein, all coins of that type will be exempt.

If a coin type is usually valued at more than 180% of itsthe gold value, because of its interest to collectors, but an individual coin is in such poor condition that it is worth less than 180% of its gold value, that coin (like others of its type) will be subject to VAT at the standard rate.

2.5 Conditions affecting the ‘normal’normal selling price

The finish influences the normal selling price of coins. Investment gold coins fall into 2 broad classes:classes.

1. CoinsThe producedfirst consists of relatively older issues made to circulate as currencycurrency. —These will normally be worn from circulation.

2. CoinsThe second, generally more recent, are primarily produced as a store of wealth.

Coins canThese bemay have been issued in differenta finishes.number Ifof finishes and if the majority of a type of coin are in thefor sameexample condition,‘brilliant thatuncirculated’ valuecondition willthen, reflectother thethings normalbeing sellingequal, price.

Example 1

If a coin is in ‘brilliant uncirculated’ condition, then the ‘brilliantbrilliant uncirculated’uncirculated value will bereflect the normal selling priceprice.

On ofthe thatother coin.

Examplehand, 2

Ifif mostthe majority of a particular coin are in ‘proof’ condition, then the value of the proof coin willis more likely to reflect the normal selling price.

The test of normal selling price must:

• considermust take into account these factors

• and be based on the condition in which the gold coin type is most frequently tradedtraded.

2.6 Investment gold coins and the marginMargin schemeScheme

You cannot sell investment gold coins (read paragraph 2.1) under the marginMargin scheme.

Scheme. If you’ve mistakenly included investment gold coins as purchases in marginMargin schemeScheme stock records, delete the entry and makenote ait note.accordingly.

If you’ve included investmentthe gold coins in Global Accounting purchases, remove the coinsitems from the scheme and adjust the total purchases in the period. You must also deduct the value ofyou have attributed to the coinsitems from your Global Accounting purchase record.

Guidance on correcting errors is in How to correct VAT errors and make adjustments or claims (VAT Notice 700/45).

You can read morefurther guidance on:

• margin schemes

• the global accounting VAT margin scheme

2.7 Record keeping requirements for dealers in investment gold coins

There are specific record keeping and notification rules for dealers in investment gold and investment gold coins. These are in Gold imports and exports (VAT Notice 701/21).

3. List of investment gold coins

The following list is in alphabetical order by country name, then by denomination of the country’s coins.

When the category of coins is the same, the list shows the increasing value of the currency.

The denomination of each coin matches the currency shown on the coins. However, if the currency on the coin is not shown in roman script, the list will show its denomination in brackets, when possible.

Read the UK list of coins recognised as investment gold coins (ODS, 16.716.6 KB).

Your rights and obligations

Read the HMRC Charter to find out what you can expect from us and what we expect from you.

Help us improve this notice 

If you have any feedback about this notice  email: customerexperience.indirecttaxes@hmrc.gov.uk. 

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If you need general help with this notice or have another question, contact VAT general enquiries.

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