That’s Tax Free Sir
05/09/2012Daniel Fisher
Free & fully insured UK Delivery. Learn more
Secure & flexible payments. Learn more
Buyback Guarantee Learn more
An interesting trend to note especially during our current economic climate is tax avoidance. With people generating less income from various asset classes, they are constantly seeking tax free solutions to minimise their overall tax liabilities to offset their losses.
In July 2012 the French government announced it was to increase taxes on foreign-owned second homes. Capital gains tax (CGT) on property sales would rise from 19 per cent to 34.5 per cent. The extra in each case was being labelled a “social charge”.
Clearly – Governments that are cash stricken are clutching at straws. Increasing taxes is only one way that a country can raise finance. The other prescription offered by the Fed is to simply print more money! But the two together is a way of the fiscal system having two bites of the cherry.
Download the FREE Ultimate Insiders Guide to tax free gold investments here
Ben Bernanke suggested last Friday that the bank might inject more money into the economy
via so-called quantitative easing (QE). As a result the dollar suffered further deterioration and this affected a 3 % rally in the gold price. People can see that any further QE will devalue currency thereby enhancing the value of gold and with the likes of Bank of America Merrill Lynch predicting that gold will reach $2,000 before year end – people are rushing in to pick up these price increases.
Some analysts refer to gold’s increase as a forgone conclusion, a question of when as opposed to if. These people of course expect to maximise growth but they also want to legitimately minimise tax exposure. What if in addition to QE, governments start to mimic France’s latest CGT ploy?
The most noticeable trend amongst Physical Gold Ltd’s (PGL) clients is the overwhelming demand for Sovereigns and Britannia’s over the last few months. Both of these coins are “investment grade” which means that no VAT is payable but the real distinction between these gold coins and all other gold is that they’re CGT Exempt!
Investors have found a way of not only using gold as a saving mechanism and an insurance policy but also as a further guarantee if gold continues to rally – No Tax liabilities!
A further trend demonstrates that owing to the tax implications of these coins, the increase in value can sometimes be higher than the rising price of all other gold. Who now has two bites of the cherry?
Live Gold Spot Price in Sterling. Gold is one of the densest of all metals. It is a good conductor of heat and electricity. It is also soft and the most malleable and ductile of the elements; an ounce (31.1 grams; gold is weighed in troy ounces) can be beaten out to 187 square feet (about 17 square metres) in extremely thin sheets called gold leaf.
Live Silver Spot Price in Sterling. Silver (Ag), chemical element, a white lustrous metal valued for its decorative beauty and electrical conductivity. Silver is located in Group 11 (Ib) and Period 5 of the periodic table, between copper (Period 4) and gold (Period 6), and its physical and chemical properties are intermediate between those two metals.