The short answer
Investment gold is exempt from VAT. That covers gold bars and wafers at least 995 parts per thousand pure, and gold coins minted after 1800 that are at least 900 parts per thousand pure and are, or have been, legal tender. Sovereigns and gold Britannias qualify.
Silver, platinum and palladium bullion are standard-rated, so 20% VAT is part of the price. That includes silver Britannias, even though they are legal tender.
What counts as investment gold
HMRC sets out the rules in VAT Notice 701/21. Gold qualifies as investment gold, and is exempt from VAT, if it is one of the following.
- A bar or wafer of gold at least 995 parts per thousand pure, in a weight accepted by the bullion markets. This covers the usual sizes from 1 g to 1 kg, and the 12.5 kg London Good Delivery bar.
- A gold coin minted after 1800, at least 900 parts per thousand pure, that is or has been legal tender in its country of origin, and is normally sold for no more than 180% of the value of the gold it contains.
- A gold coin on HMRC's published list of coins recognised as investment gold (VAT Notice 701/21A).
Which items carry VAT
Gold that does not meet the investment gold rules is standard-rated. So is all silver, platinum and palladium bullion, whatever its form. The table shows the usual position for the items we sell and some common others.
| Item | UK VAT |
|---|---|
| Gold bars and wafers, 995 fine or better | Exempt |
| Full and half Sovereigns | Exempt |
| Gold Britannias | Exempt |
| Krugerrands, Maple Leafs and other qualifying gold coins | Exempt |
| Gold jewellery and scrap gold | 20% |
| Silver bars | 20% |
| Silver Britannias and other silver coins | 20% |
| Platinum and palladium bars and coins | 20% |
What this means for silver prices
Because VAT is added to silver, a silver bar or coin costs noticeably more than the value of the metal in it. On our shop, silver prices include VAT and are marked "incl. VAT"; gold prices are marked "VAT free".
When you sell silver back to a dealer, the price is based on the metal, not on what you paid including VAT. The VAT is not refunded, which is one reason silver tends to suit longer-term buyers.
Selling investment gold
Selling investment gold back is also exempt, so there is no VAT to account for when you sell bars or qualifying coins. Capital Gains Tax is a separate question, covered in our guide to Capital Gains Tax on gold and silver.
Common questions
Do I pay VAT on Sovereigns?
No. Sovereigns are 22 carat (916.7 fine), were minted after 1800 and are legal tender, so they are investment gold coins and exempt from VAT.
Do I pay VAT on silver Britannias?
Yes. The investment exemption covers gold only. Silver Britannias carry VAT at 20%, even though they are legal tender and free of Capital Gains Tax.
Are your shop prices shown with VAT?
Yes. Silver prices include 20% VAT. Gold bars and coins that qualify as investment gold are VAT free, and the price shows that.
Is a 22 carat gold bar investment gold?
No. A bar must be at least 995 parts per thousand pure. A 22 carat bar (916.7) would be standard-rated. The lower purity rule of 900 applies to coins only.
Sources
- HMRC: Gold acquisitions, imports, investments and VAT (Notice 701/21)
- HMRC: Investment gold coins and VAT (Notice 701/21A)
This guide is general information, checked against HMRC guidance in October 2026. It is not tax advice, and rules can change. For your own circumstances, speak to a qualified tax adviser.