Capital Gains Tax on Gold

dreem

Just looking at tax on gold where capital gains tax is concerned, does CGT only come into consideration on the increased value of the gold from the point when i purchased to when I finally sell or is it a percentage of the total sale value of the gold?

I've now found that British gold coins are tax free (Unfortunately not Krugerrands as i've now found!) but if the CGT free status on sovereigns etc is changed in the future would the tax free status still apply if i've purchased them before any future change to the rules?

antrobus

CGT will come into play when you sell the gold and you will be assessed on the difference between the sale value and the purchase price of the gold. It is not possible to predict what any changes any future Parliament might implement regarding the tax free status of gold sovereigns.

dreem

So you would need to retain some formal documentation/receipt from the original purchase for review years later when you come to sell?

Are changes to tax generally retrospective or are changes usually implemented from date x onwards?

chrismac1

For future reference, there are many different vehicles for trading in gold which are outside CGT - so why use one which is inside it? For short term punts in gold and silver I like spread bets. For longer term holdings, physcial gold is often more expensive to hold than some of the alternatives.

Tax changes are almost always not retrospective.

antrobus

dreem wrote: »

So you would need to retain some formal documentation/receipt from the original purchase for review years later when you come to sell?

Yes that would help.