Taxation

From 1 January 2000, investment gold became exempt for VAT purposes in the United Kingdom in line with the EC Council Directive 98/80 EC – “Special scheme for investment gold”. However, under the revised VAT legislation, LBMA members will continue to zero-rate supplies of investment gold between themselves and enjoy the benefit of reduced documentation requirements. Supplies of investment gold between LBMA members and UK VAT-registered entities will be covered by the “Special Accounting Scheme for Gold”.

Within the UK, silver and non-investment gold continue to fall under the scope of the Terminal Markets Order and an agreement reached between the Commissioners of HM Customs & Excise and the LBMA. The resulting trading arrangements are often referred to as the “Black Box”. In brief, sales between a member and a non-member are zero-rated provided the member retains effective physical control of the metal or the member ships it outside the UK on behalf of the non-member.

For more details on tax arrangements, the LBMA recommends talking to a tax advisor.

Taxation

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