In the UK, silver, platinum and palladium bullion attract standard 20% VAT. Investment-grade gold is the only precious metal that’s completely exempt. That single difference is the biggest reason gold dominates the UK retail bullion market — and the biggest gotcha for new silver buyers.
Why gold is VAT-exempt
HMRC’s VAT Notice 701/21A defines “investment gold” as:
- A bar or wafer of an accepted weight and a purity of at least 995/1000, or
- A gold coin minted after 1800, with at least 900/1000 purity, that has been (or is) legal tender in its country of origin, and whose normal selling price doesn’t exceed the open-market value of the gold by more than 80%.
If your gold meets that definition — and virtually every modern Britannia, Sovereign, Krugerrand, Maple Leaf or Eagle does — it’s zero-rated for VAT. You pay the spot price plus the dealer’s premium, no VAT line.
Why silver doesn’t get the same treatment
Silver, platinum and palladium are classed as standard-rated commodities. A UK dealer selling you a 1oz Silver Britannia must charge 20% VAT on top of the spot price plus their premium. That’s why a Silver Britannia coin you’d expect to cost £45 at spot often retails for £55–£60.
You can verify the effect for yourself by toggling the Ex VAT / Inc VAT switch in the status strip on the dashboard — it multiplies the silver/platinum/palladium price by 1.20 and leaves gold alone.
The legal ways to reduce VAT on silver
There are three legitimate paths UK silver buyers use:
1. Buy on the “margin scheme”
Some UK dealers run the VAT Margin Scheme on second-hand silver coins. Instead of charging 20% on the full sale price, they charge 20% only on their margin (the difference between buy and sell). On a coin where the dealer makes £3 of margin, the VAT charge is around 60p instead of the full 20% of the coin’s price.
Margin-scheme silver is usually older second-hand coins — Pre-2013 Britannias, Maples, Eagles. New coins direct from a mint can’t normally be sold under the margin scheme.
2. Buy LBMA-vault stored silver
If you buy silver and leave it in an LBMA Good Delivery vault (such as via BullionVault or GoldMoney), the transaction often qualifies as investment silver and avoids UK VAT. The catch: you don’t take physical delivery — the silver stays in the vault.
3. Buy outside the UK
Bringing silver into the UK from another jurisdiction can mean VAT and import duty at the border. The cross-border maths usually only works for institutional quantities.
Platinum and palladium
The same 20% VAT applies to platinum and palladium. They have no “investment-grade exempt” carve-out at all — even pure 999.5 PAMP Suisse platinum bars carry VAT.
Browse platinum bars → · Browse palladium bars →
Quick reference table
| Metal | VAT on coins | VAT on bars |
|---|---|---|
| Gold (investment grade) | Exempt | Exempt |
| Silver | 20% (or margin) | 20% |
| Platinum | 20% (or margin) | 20% |
| Palladium | 20% (or margin) | 20% |
Putting it together
When you compare silver vs gold premiums, always work in inc-VAT terms if you’re a UK retail buyer. A 1oz Silver Britannia at £55 inc-VAT is buying ~£42 of silver and ~£13 of VAT-plus-premium. A 1oz Gold Britannia at £2,650 is buying ~£2,520 of gold and ~£130 of premium — no VAT at all.
For a working calculator with the VAT toggle baked in, use the bullion value calculator.
Not financial or tax advice. Always confirm current VAT treatment with a qualified UK tax adviser before transacting at material size.