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Guide to buying lower priced Silver bullion without VAT

britannia 1oz silver bullion coins vat free

Covered in this silver buyers guide:

  • Buying VAT free silver Coins in the UK 
  • How you’re probably paying too much for your silver
  • Why buying silver from VAT restricted dealers isn’t always the best idea
  • What are the pro’s & cons of investing in silver
  • Where and how to re-sell your silver coins for the best prices

You’ve probably figured out that silver bullion has been an underpriced commodity, but how do you buy the precious metal at the best available price per ounce whilst minimising the dreaded VAT aspect of investing in silver bullion!? 

Making silver trade fair and easy

Here’s my CoinsUK quick buyers guide to help you discover how the retail silver trade works and how you can get a price advantage stacking silver bullion coins and bars vat free

As a silver coin buyer myself, I have had those same frustrations “where to buy and sell silver bullion coins at the best price?”

Do you always pay VAT on buying silver coins in Britain? and when Is VAT charged for retail customers and the general public when buying silver bullion in the UK?

NO VAT is not automatically payable on all silver bullion purchases, it isn’t that silver attracts the VAT, it’s more a case that the larger retailers have to charge VAT on silver themselves, simply because they’re trading beyond a VAT threshold.  Therefore the first thing we can do as retail buyers is shop around for coin dealers with smaller turn-over, perhaps part-time specialist silver re-sellers like CoinsUK, or private coin collectors who are totally free to sell their own silver without charging any added VAT. Different Countries within the EU have their own VAT rates and rules, regardless of which you will only pay the vat tax once – in the Country of sale, although this may change post the UK’s departure from the EU.

The most cost effective method of buying physical silver coins is almost certainly buying from sellers who are not required to be UK vat registered.

Where to buy low cost VAT free investment silver

This is the reason why many coin buyers choose to re-sell their own coin collections on auction sites like ebay and ebid (ebid generally has lower sales fees & hence can also be a good place to find an occasional silver bargain!)  The slight downside with auction sites can be the sales commissions of up to 10% plus Paypal fee’s which can bump up the sales costs for collectors and silver stackers.  

Tips – advice for buying & selling silver bullion coins and bars

Top tip:  A technique I’ve used myself whilst accumulating much of my own CoinsUK silver stock and special silver offers, net of any VAT and tax, is once I’ve found good reliable, honest coin sellers who are reducing their own silver stack, it is beneficial to keep in regular contact and gradually make direct offers to buy their silver, perhaps agreeing a set rate, or a fixed rate over spot.  Even paying say 20-25% over spot can result in finding a good source of VAT free silver, significantly lower priced than the UK retailers since many of the larger UK coin dealers will be adding 20% VAT on top of their own buying cost and sales margins.

How the coin trade pricing works; Silver coin retailers add a coin re-sale premium on top of the Mint production and resale premiums, on top of which 20% UK Vat is also added, unless it’s a secondary market Margin scheme sale, in which case the tax is paid on the profit margin.

Sourcing reasonable quantities of silver bullion from UK margin scheme sellers can be a time consuming challenge, especially at times of bullion price appreciation because there simply isn’t a lot of quality silver coins and bars coming onto the second hand market. Linking buyers directly with silver sellers on the secondary silver market is something I am actively engaged with to help silver investors find reputable sources for accumulating silver bullion at fair trade prices.

Coinsuk and SilverHubs is evolving into a fair trade community for silver appreciation and will enable silver stackers to trade together in a safe, trusted environment whereby everyone can benefit from sharing silver resources and information to make the buying and selling process clear and fair for all.

Why are the larger coin dealers & the UK Royal Mint so expensive to buy physical silver bullion coins from? 

The simple answer is that A/ they have significant retail overheads to cover, typically larger premises to facilitate their staff, various taxes on premises, rates, insurances as well as staff and wage costs, pension contributions etc etc plus of course the need to make a higher profit to justify their capital allocations.  Smaller coin dealers, rural shops, work from home specialist collectors and private sellers are typically able to trade much more nimbly with lower fixed costs and of-course often under the threshold for which we have to add in the UK Govs 20% VAT rate!

UK VAT free silver coins from the EU

In recent years there has also been a rise in European dealers who are selling silver bullion coins on a EU VAT margin scheme at a reduced VAT & tax rate.  Reduced VAT Margin dealers can be worth exploring especially if you are looking to buy significantly large volumes of bulk priced silver bullion, which is often needed to justify the extra costs of shipping and insurance from Europe.  You will also need to consider any foreign currency exchange rate costs, typically UK Pounds Sterling to Euro.  There’s also still going to be some element of added tax, relevant to the overseas retailer plus their profit margins on the retail silver coins as well as any post Brexit tax implications.

Simple solutions to saving money when buying silver bullion coins in the UK

A/ Search out private sellers – and negotiate their best price – deal directly person to person.

B/ Find smaller retail sellers, shops and online coin sellers – who are reducing silver stock and can sell without VAT

C/ Consider negotiating larger orders at a fixed price and pay a deposit to lock the silver rate, which is something that I’m always happy to look at with on my own silver sales

Why is paying VAT on investment silver not a good idea for private buyers? 

Simple – you’ll rarely be offered any of the 20% VAT element back when you come to re-sell your silver to a VAT registered bullion dealer or scrap merchant! 

Do an online search of the larger coin retailers including The number 1, 2 and 3 silver retailers! They’ll all typically offer you the net silver spot price per ounce with at best a small premium of perhaps spot +1%, maybe very slightly higher if it’s a scarcer coin, if you’re lucky!  No matter how coin dealers phrase their buy-back offers, it’s still a signifiant loss if you’ve paid a 20% tax on your purchase!  i.e. A dealer might say something like ‘we pay 100% spot plus 1%’ – it sounds good right!! wow – we get the whole 100% plus an extra %! In reality – the  99% or 101% is simply based on the industry spot price, NOT the VAT inclusive price.

Private coin collectors, silver stackers or small trade buyers do not suffer this pricing limitation and are therefore free to offer lower priced silver when selling PLUS higher buy back prices when you come to re-sell. 

Private silver buyers tend to pay a reasonable premium for good silver coins which will still typically mean that the coins are priced below a dealers vat inclusive price.
i.e – At CoinsUK I will often pay 15, 20, even 25% above the spot silver price to re-buy certain silver coins,  which equates to a fairer trade deal all-round, for both buyer and seller.  Selling your silver coins privately will also enable you to find coin collectors who are paying a higher price per ounce simply because they’re buying direct and cutting out the middle-man as well as the dealer and tax.

Are there any other ways to make buying investment silver in the UK cheaper without VAT? 

Yes – coming soon! CoinsUK are launching our own CoinHubs to enable you to trade directly between buyers and sellers, with zero commissions, that’s zero % sales fees.  This new facility launches in Autumn 2019, if you’d like to hear more and join CoinsUK CoinHubs, drop me a line – contact Steve at CoinsUK

As a fellow coin collector and silver stacker, I’ve experienced the same frustrations of where and how to buy fair priced silver bullion in the UK as well as “how and where to re-sell silver without paying high sales commissions and loosing the investment gain”! 

Are the Britannia coins legal tender and CGT free? what’s the benefit of buying British Mint issued silver coins? CGT Free is great – so long as you actually make a gain on your silver investment!

The Britannia 1ounce silver coin as minted by the UK Royal Mint is legal tender for it’s face value of £2 (two Pounds Sterling) Legal tenders true meaning is that the coinage can be used to pay debts or fines in a UK Court! It does not mean that banks, post offices or shops are obliged to accept these coins for payment. Likewise it does not mean that we can’t use the value contained within the precious metal of the coins to trade them ourselves for goods or services at their derived or intrinsic value should we wish to.

The face value of a Britannia 1oz coin is two Pounds, although the market value far exceeds this and is determined by; A/ The silver spot price plus a premium for production, mintage, delivery and selling costs. B/ The intrinsic value, or any premium assigned by the buyers perceived value.

Do CGT free silver coins make better coin investments? The UK Britannia coins legal tender nominal value means that the Britannia 1 ounce £2 silver bullion coins are CGT free, but what advantage is “Free of Capital Gains Tax” if any gain has already been wiped out by the high purchase cost in relation to a net VAT sales price, less sellers fee’s. Remember that to first benefit from any CGT advantage, you first have to make a gain!!

It is also worth exploring your own liability to Capital gains and current tax rules before you go rushing to simply buy British minted Britannia silver coins. If indeed you aren’t going to use your current CGT free allowance, you may well benefit more by buying coins with greater collector appeal as well as similar or lower premiums than the Britannia. Good examples of investment bullion coins include the newer South Africa Mint Krugerrand and the increasingly desirable more limited issue 1oz silver Dragon bars which are minted by the Perth Mint and are also authenticated legal tender coins with a $1 face value.

Generally speaking CGT free is not always a significant benefit, if any benefit at all! to UK buyers who would not be using up their current Capital gains tax free allowance. (always seek advice and do your own research if in doubt about your own tax situation)

There are increasingly vocal counter arguments to the UK Royal Mints assigned Legal tender status to certain coins and their counter move of giving coins with a much lower actual precious metals content – an actual higher ‘legal tender amount’ At face value coins like the £50 silver might look to be good value and many UK buyers have been fooled and annoyed to subsequently discover that no-one will actually accept these coins at face value! because they are not actually ‘circulating legal tender’ which is something the Royal Mint conveniently seem to omit from their sales promotions! A further downside is that the actual precious metal content – pure silver bullion is exactly the same as the £2 Britannia!

What looks the best value – a RM coin sold for £50 containing 1 ounce of silver or a £2 Face Value Britannia currently retail at under £20 each, also containing the same 1 ounce os silver!?

Silver certainly looks to be undervalued at mid 2019 prices with extreme gold to silver ratios, however it’s still important be do your research and aim to buy fair priced silver coins without added VAT and then look to establish a plan for re-selling the coins easily without dealer or sales commissions.

It’s for these reason – I’ve been working hard to help fellow coin collectors and silver investors get access to their very own Coin Hubs trading platform which they can use commission free, with unlimited buying, selling and trading, whilst also exchanging tips, information and the best buy prices directly between buyer and seller – ‘cut out the middle man’.  CoinsUK – Coin Hubs will also be incorporating lots of new facilities to make the whole process of buying and selling silver bullion coins and bars a simple, fair, safe and trusted experience in the UK as well as the USA, Canada, Australia – as we expand the facilities to coin sellers Worldwide.

Be the first to find out more about lowering your costs to buy / sell and exchange silver at CoinsUK: contact@coinsuk.co.uk

UK silver coins benefiting from lower direct peer-to-peer re-sale costs;  Pre-1920 .925 Sterling silver, Britannia collectable .958 silver coins, Britannia £2 1 ounce 999 silver bullion, Royal Coat of Arms 999 silver 2019 silver bullion coin.

Pre-owned and margin scheme secondary coin sellers: The British Government have a Margin scheme whereby dealers can re-sell coins that are not legal tender coins in the UK.  Many non UK minted Legal Tender coins can be sold in the UK on the VAT margin scheme whereby the dealer will pay VAT on the profit margin, these types of coin sales are often good value, although at times hard to find in reasonable quantities!  typical coins which we’d see come up for re-sales on a margin scheme include; USA American Eagles, Canadian Maple-Leafs, Kangaroos, legal tender 1oz coin bars, Mexican Libertad and more recently the limited issue Perth Mint Dragon $1 coin bars.

Finding dealers who will happily re-sell second hand silver on the UK margin scheme can be a good source of cheaper priced silver bullion coins and bars. In theory many of the UK Royal Mints silver bullion coins would not be applicable for the margin scheme since they are in fact classed as Legal Tender – i.e the UK Britannia is Two Pounds Sterling and Legal tender for the sum of £2 – all be it, non circulating.  Having said that, the Britannia and coins like £5 Queen’s Beasts do still occasionally come up for sale on the reduced tax Margin scheme for secondary sale silver!   Off-course if you buy your silver privately or from a dealer who isn’t required to be registered for charging VAT – you will not need to pay any VAT at all, not even the VAT on a profit margin, because VAT just won’t be applicable, that’s the significant benefit of buying silver from smaller retailers and private re-sellers.

If you’re a UK bullion dealer or re-seller offering cheap fair priced silver, or using the margin scheme and would like to offer your silver direct to UK CoinHubs buyers, we’d like to hear from you; contact Steve at CoinsUK


Private re-sellers of silver bullion and collectors coins looking to get the best prices, sales commission free for your silver, can also register your interest and be amongst the first to get free access to our CoinsUK CoinHubs.

A fair trade place to buy and sell silver coins – CoinsUK CoinHubs – The platform for silver coin appreciation

I hope you found the silver insights useful and if you have more interest in the silver trade I am always pleased to hear from you ‘Steve Hotson’ – you are welcome to get in touch anytime

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How to buy silver coins without UK VAT

silver bullion uk coins

Price perspectives for silver bullion coins

As a fellow silver bug I have compiled useful information learned from my own experiences collecting silver bullion coins and bars since 2009 when I purchased a first significant batch of Sterling 925 silver bullion. More silver tacking followed in 2011, although with silver doubling in price from around £10 per ounce to over £21 per ounce – I was then paying around £29 per ounce for the China Mints 3-999’s silver Panda coins to join my existing collections of older pre-1920’s .925 Sterling silver. 2014 saw good bullion prices with further purchases of VAT free silver; the 2014 Britannia which the UK Mint released to the VAT free US and European wholesale bullion trade coin markets.

In 2011 with silver at £21 / $27 per ounce – there was strong interest and growing demand for real physical silver bullion. What followed was almost constant short selling of paper derivatives and paper futures contracts on the comex market which constantly drove the spot silver price back towards the £10-£13 ($13-$16) levels, ultimately creating another unique opportunity to accumulate physical silver at historically attractive prices.

Silver in 2019 looks to resume the physical silver bull market as prices re-break the trend line and clear $16.80 – there’s a lot of clear chart space above for silver to re-target a return to more historical silver/gold ratios of 60/1

At $1500 gold – a relatively modest 70/1 ratio makes silver over $21
With silver mined and in the ground naturally at 11/1 – I believe we will once again see physical silver bullion trade over its $50 previous high.

With the growing popularity of the newer .999 pure silver bullion coins It can appear a complex market when it comes to sourcing these silver bullion coins in GB at a fair price in relation to the global silver spot price and that’s before UK dealers add in their selling margins and the VAT!

Tip No.1 – keep it simple, trade direct, deal with trusted sellers with reliable reputations supplying fair priced priced silver bullion coins. Silver is a natural element symbol Ag. which has performed a perfect role as a natural, reliable, trusted form of money for over 4000 years, enabling people to conduct trade directly between buyer and seller, person to person. Aim to eliminate as much of the supply chain and complexity from buying your silver coins as possible and you’ll discover how to lower your overall silver costs per ounce.

Tip 2. Silver Premiums always disappear with time, in the long run most value investors tend to price silver in relation to the spot market bullion price plus a reasonable coinage premium. Unless the coins are really scarce and sought after, the lower the initial premium bullion you pay, the higher your gain on resale. As a general rule you will make more money on silver bullion from buying coins as close to ‘bullion spot’ as possible, than simply hoping that a huge rally in silver prices will help you recover higher priced, taxed premium coins.

There are ways to buy cheaper silver and if your aim is to build a profitable investment collection, it pays to reduce your costs per ounce by dealing with fellow silver sellers directly and learn how to confidently accumulate tax free silver directly from trusted sellers. My evolving silver coin hubs will enable you to do just that; deal p2p person-to-person, tax and vat free, buying your silver coins at the lowest prices by eliminating un-necessary complexity and overheads.

After all – you just want low priced, cheap affordable silver bullion right! which you can use to store your purchasing power, investment value and have a trusted unit of internationally recognised currency with which you can freely trade.

The silver market has evolved a lot over the last 10 years with plenty of new releases joining the pure 999 silver scene! I’ve got some exciting projects underway to help fellow silver-stackers gather accurate up to date information as well as share my insights into buying silver at the best possible prices whilst always keeping a fine eye on what to buy and just as importantly how and where and to re-sell your silver coin investments without loosing a good proportion of your investment to taxes, commissions and selling fees!

2019 Silver bullion buyers & sales hub

As I develop a silver coin resource hub there’s lots of silver knowledge and trading tips that I’m alway happy to share and help fellow UK coin buyers with, as more than ever in 2019 the silver bullion market has huge choice and price variation. The good news is that it really doesn’t need to be complicated, keep things simple, gather and share trusted information, experience and sales facilities – all things I’m working hard to share whilst I work with both the silver industry and retail to improve silver’s appreciation and hopefully a steady return to more awareness for silvers true role as the ultimate global ‘sound money’ and store of value.

Dealing with me at COINSUK has several advantages over the larger GB based bullion dealers, which enables you obtain fair priced silver coins competitively in the UK without adding un-necessary VAT and sales taxes to the sale prices.

I buy silver bullion in trade bulk, both new issues directly from official Mint suppliers, as well as second hand silver which is usually just as new, safe stored in original Mint tubes. As a small business with an active interest in the silver industry, I share the savings with fellow collectors enabling you to deal person to person sharing my resources and experience to help lower your own silver bullion costs.

As a UK based SMB we can currently trade under the VAT fresh-hold, which means silver coin collectors benefit from silver bullion coins without added UK VAT = lower priced silver coins

How to buy silver coins without vat – COINSUK zero vat on UK silver coin sales

As a fellow silver coin fan – slightly frustrated by the Uk’s confusing silver coin market, I have compiled a guide to buying silver bullion coins and bars at fair low prices without Vat in GB.

COINSUK also trade with silver buyers and sellers of VAT free secondary market collectable silver bullion coins which we can sell at low margins. Our UK silver bullion coin stock includes a comprehensive selection of the main World Coin Mints, including; 1oz silver Britannia, Silver Maple-Leaf, 9999 Aus Silver Kangaroo, SA Silver Krugerrand, Dragon silver 1ounce bullion bars, plus various larger sized 5 ounce and 10 ounce silver bullion coins.

Specialists in VAT free UK Mint Britannia silver coins

COINSUK offer you a fast assured low cost source for your UK silver bullion coins. We have bulk silver bullion available for fully insured, free next day delivery. Assured quality checked and official Mint distributor sourced silver bullion coins.

Taking delivery of physical silver bullion saves storage costs & counter-party liabilities

There’s a saying in precious metals forums – “If you don’t hold it – you don’t own it!”
Whilst the lure of VAT free offshore stored silver coins and bars sounds appealing, it usually comes with a couple of significant catches; 1. There’s a monthly storage fee & 2. If you ever want to physically get hold of your silver in times of financial turmoil, they’ll be extra shipping costs as well as any relevant vat and taxes to pay once you opt to take delivery. Most ‘allocated platforms’ also have fees or a buy/sell spread.

The simplest, safest way to buy and hold silver bullion is to buy popular internationally recognised Minted coins which are easy to re-sell, small units of easily tradable silver like Britannia, Krugerrands, Dragon bars etc. Buy from a non registered or VAT free seller and take physical ownership at the lowest cost per silver ounce you can secure.

If you would like more information about lowering your silver bullion costs, or how I can help you trade your own silver and bullion coin collection, you’re welcome to get in touch with me for a friendly 1to1 chat by phone or email.

Further reading – info about buying vat free silver bullion coins and bars