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)

YouRead should read this notice alongside Goldgold 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 3

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 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. Exemption depends on the ‘normal’ selling price.

2.4 The ‘normal’ selling price

This is the price usually demanded for a particular type of coin.

If the usual price of the coin type falls within 180% of the value of the gold it contains, all coins of that type will be exempt.

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

2.5 Conditions affecting the ‘normal’ selling price

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

• Coins produced to circulate as currency — normally worn from circulation.

  circulation

• Coins primarily produced as a store of wealth.

  wealth

Coins can be issued in different finishes. If themost majority of a type of coin are in the same condition, that value will reflect the normal selling price.

Example 1

If a coin is in ‘brilliant uncirculated’ condition, then the ‘brilliant uncirculated’ value will be the normal selling price of that coin.

Example 2

If most of a particular coin are in ‘proof’ condition, then the value of the proof coin will reflect the normal selling price.

The test of normal selling price must:

• consider these factors

• be based on the condition in which the gold coin type is most frequently traded

2.6 Investment gold coins and the margin scheme

You cannot sell investment gold coins under the margin scheme.

If you’ve included investment gold coins coins:

• as purchases in margin scheme stock records, delete the entry and make a note.

  If you’ve included investment gold coins note

• in Global Accounting purchases, remove the coins from the scheme and adjust the total purchases in the period.period You— you must also deduct the value of the coins from your Global Accounting purchase record.
  record

GuidanceRead onabout correcting errors is in Howhow to correct VAT errors and make adjustments or claims (VAT Notice 700/45). for information about correcting errors.

You can read more guidance on:

• the 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. TheseRead areabout in Goldgold 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, 16.115.9 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. 

You’ll need to include the full title of this notice. Do not include any personal or financial information like your VAT number. 

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

Putting things right

If you’re unhappy with HMRC’s service, contact the person or office you’ve been dealing with and they’ll try to put things right.

If you’re still unhappy, find out how to complain to HMRC.

How HMRC uses your information

Find out how HMRC uses the information we hold about you.