How do VAT-free silver coins work?
Physical silver coins purchased for delivery in the UK are generally subject to 20% VAT.
Physical Gold’s VAT-free solution works differently. The Silver Britannias are purchased for storage in Switzerland and remain within the offshore bonded storage arrangement rather than being imported into the UK.
As a result, UK VAT is not charged on the initial purchase while the coins remain within this arrangement.
The coins are still physical silver. They are allocated to you and stored securely on your behalf rather than being represented by a fund, ETF or other financial instrument. + Read more
Why silver Britannias?
The Silver Britannia is one of Britain’s best-known investment silver coins and is produced by The Royal Mint.
Each standard 1oz Silver Britannia contains one troy ounce – 31.103g – of fine silver, with modern coins produced to 999 fineness. The coin has a nominal face value of £2.
Silver Britannias also have an important tax characteristic for UK investors. Because they are British legal-tender coins, they are exempt from Capital Gains Tax for UK residents.
When purchased through Physical Gold’s offshore storage arrangement, Silver Britannias therefore combine no UK VAT on the initial qualifying purchase with the existing CGT exemption associated with British legal-tender coins.
VAT-free silver Britannias or UK-delivery Britannias?
The principal difference is where the coins are stored and whether you want to take physical delivery.
Standard Silver Britannias for UK delivery are generally subject to 20% VAT. Once delivered, you have physical possession of the coins and can choose how and where to store them.
VAT-free Silver Britannias are instead purchased specifically for offshore storage at Brink’s in Zurich. Because they remain within the qualifying storage arrangement, UK VAT is not charged on the purchase.
If you want to hold your Silver Britannias personally in the UK, choose our standard Silver Britannia coins.
If your priority is owning physical Silver Britannias without taking UK delivery, the VAT-free storage option provides an alternative.
How are my silver coins stored?
VAT-free Silver Britannias are stored at Brink’s in Zurich, Switzerland.
Your silver is held on a fully allocated and segregated basis, meaning you retain legal ownership of identifiable physical bullion rather than having an unsecured claim against Physical Gold. The holdings are also insured.
You can view the value of your stored holding through your Physical Gold account.
Storage charges apply to the arrangement. See our delivery and storage page for current charges and further details.
Can I take delivery of VAT-free silver Britannias?
VAT-free Silver Britannias are specifically sold as storage-only products.
They cannot be delivered into the UK while retaining their VAT-free status. If the silver is subsequently imported and delivered into the UK, VAT becomes applicable.
If you want silver coins delivered to your home or another UK address, browse our standard silver coins instead.
How many VAT-free silver Britannias can I buy?
The current VAT-free Silver Britannia product has a minimum order quantity of 25 coins.
Multiples of 25 are supplied in Royal Mint tubes, while quantities of 500 are packaged in Monster Boxes containing 20 tubes.
Each coin contains one troy ounce of fine silver, so 25 coins represent 25 troy ounces of physical silver.
For buyers looking to acquire silver in larger individual units rather than coins, Physical Gold also offers VAT-free silver bars.
VAT-free silver coins or VAT-free silver bars?
Physical Gold offers both Silver Britannias and silver bars through its offshore VAT-free silver solution.
VAT-free Silver Britannias provide the divisibility of individual 1oz coins and benefit from CGT exemption for UK residents because of their British legal-tender status.
VAT-free silver bars provide a way to acquire physical silver in larger individual units and may offer a lower premium per gram.
The appropriate choice will therefore depend on factors including the amount of silver you want to buy, premiums, divisibility and Capital Gains Tax considerations.
Understanding the costs
Although UK VAT is not charged on qualifying silver purchased through this offshore arrangement, there are other costs to consider.
The purchase price consists of the underlying value of the silver plus the applicable coin premium. Secure storage charges also apply while the coins remain within the Zurich facility.
You should therefore consider the overall cost of ownership, including the purchase premium and ongoing storage charges, rather than looking at the VAT saving in isolation.
You can check the underlying live silver price before comparing the available products.
What happens when I want to sell?
You do not need to take physical delivery of your VAT-free Silver Britannias before selling them.
Silver held within Physical Gold’s Zurich storage arrangement can be sold directly from storage, avoiding the need to transport the coins back to the UK first.
Contact our team when you are ready to sell to obtain a live price and instructions for completing the sale.
For silver already held personally in the UK, see our sell silver coins page.
Why buy VAT-free silver Britannias from Physical Gold?
Physical Gold is a specialist precious-metals dealer based in London’s Hatton Garden and an authorised Royal Mint distributor.
Our VAT-free silver solution provides a way to own allocated physical Silver Britannias without paying UK VAT on the initial purchase, provided the coins remain within the qualifying offshore storage arrangement.
Your silver is held on a fully allocated and segregated basis at Brink’s in Zurich, with secure storage and insurance included within the storage arrangement.
For assistance with VAT-free Silver Britannias, call 020 7060 9992 or email info@physicalgold.com.