Question about UK gov & CGT

[Chundor]

Hi guys,

I am giving serious thought to putting my investments into gold and silver.

I have a friend who lives in Tallinn, Estonia - so I could easily purchase silver Britannias with zero VAT (which would be nice!). I like the Britannias, as they are currently CGT exempt.

My question: If/when fiat money explodes and PM's increase - what do you think of the chances the UK government would re-instate and/or increase CGT on Britannia? Would they likely confiscate and outlaw ownership of PM's in that kind of scenario? I realise nobody knows what will happen, but given history etc., what do you think?

I'm not interested in getting rich, only protecting what relatively little I have

[Bumble]

Confiscating silver would be difficult because there is so much of it; also, it is bulky and not highly valuable for its size or weight. Imposing CGT on Britannias is possible, though I doubt it would bring in much tax revenue.

Gold is another matter. The government could impose VAT on it - it is something of an anomaly that there is no VAT. CGT could be imposed on Britannias and sovereigns. If there was a large increase in its price, there could be a windfall tax. Confiscation is unlikely, but a possibility would be a law restricting the amount of gold a person is permitted to own. From 1966 to 1979 it was illegal for UK citizens to own more than four gold coins. These days there are lots more ways to own gold, so a simple restriction on coins would be useless, but some kind of limit by mass would be possible.

Holding gold outside the UK is another option, e.g. through an account with a company like GoldMoney or Bullion Vault, or through Perth Mint certificates. A mix of this and some physical coins is not a bad idea.

If the government goes broke and wants your money, they are more likely to raid your bank account or nationalise pension schemes. It is far easier to do and there is more money to be had from it. Private ownership of gold is fairly small by comparison.

[MaxShiraz]

8 hours ago, Bumble said:

Confiscating silver would be difficult because there is so much of it; also, it is bulky and not highly valuable for its size or weight. Imposing CGT on Britannias is possible, though I doubt it would bring in much tax revenue.

Gold is another matter. The government could impose VAT on it - it is something of an anomaly that there is no VAT. CGT could be imposed on Britannias and sovereigns. If there was a large increase in its price, there could be a windfall tax. Confiscation is unlikely, but a possibility would be a law restricting the amount of gold a person is permitted to own. From 1966 to 1979 it was illegal for UK citizens to own more than four gold coins. These days there are lots more ways to own gold, so a simple restriction on coins would be useless, but some kind of limit by mass would be possible.

Holding gold outside the UK is another option, e.g. through an account with a company like GoldMoney or Bullion Vault, or through Perth Mint certificates. A mix of this and some physical coins is not a bad idea.

If the government goes broke and wants your money, they are more likely to raid your bank account or nationalise pension schemes. It is far easier to do and there is more money to be had from it. Private ownership of gold is fairly small by comparison.

Agreed. If and when the government wants to steal from you, they'll just reach into your bank accounts and/or retirement funds which they can do electronically. So in a sense PM's seem to me to be more safe from these thieves. Unlike 1933 when FDR stole citizen's gold, it's a different world with more investment options, and physically stealing gold is the harder option. But you have to physically hold it - no certificates or "paper" gold.

[KevjustKev]

The UK government cannot get hold of your gold or silver even if they wanted to, it will far to expensive for them to even try (that being the main point).

 They have to prove how much you have, if somehow they can, can they prove that that was not a gift (look up the value of gifts on the Gov.uk website).

  Gifts are not counted as any kind of inheritance, so give the money to others in your family so they can buy it for your birthday or Christmas, no CGT on these gifts. On amounts under £3,000 a year are not taxed, either by the giver of those that recive that gift.

 Everyone 'gives' you X amount, as long as it's not over £250, each item, each. So, mum, dad, brother, sister, well you get the idea. Each family member can give you £500, at least, worth of gold or silver each year, no CGT.

This is not what you should or shouldn't do. This is not advice, just my take on what I can find out I very well maybe totally wrong. See a financial advisor, even your bank may be able to help you out.