Gold

[Moscow Mule]

Are there any rules/laws preventing myco from holding gold?

If not, how do you account for it? It's value is obviously linked to the spot price, but do you change this value in your balance sheet regularly or just count it as an asset like computer equipment (I assume you can't get your gold to depreciate ).

It also seems like a great way to defer corp tax if you plan to hold the gold for a long time.

Googling "Gold accounting rules" hasn't proved very helpful so far....

[BrilloPad]

twas a fine song.

always reminds me of the 1984 olympics

[Moscow Mule]

twas a fine song.

always reminds me of the 1984 olympics

Take your facetiousness back to general, where it belongs

[BrilloPad]

Apologies - I missed the forum name

[QwertyBerty]

Buying gold is no different from say buying shares, with CGT to pay when you sell. As for accounts, you take the value on the day on the balance sheet.

QB.

[ratewhore]

Myoldco held gold in bullionvault. My accountant at the time stated it had to be declared as a dividend until I pointed out that Bullionvault will only pay back into the account the money came from initially, i.e. the company bank account.

I held my CT liability in bullionvault and when it came to the accounts it was an absolute ballache because Bullionvault statements were in troy ounces, not the sterling value...

HTH

[Nixon Williams]

Are there any rules/laws preventing myco from holding gold?

If not, how do you account for it? It's value is obviously linked to the spot price, but do you change this value in your balance sheet regularly or just count it as an asset like computer equipment (I assume you can't get your gold to depreciate ).

It also seems like a great way to defer corp tax if you plan to hold the gold for a long time.

Googling "Gold accounting rules" hasn't proved very helpful so far....

Gold would not normally be held in a physical form, but "on deposit" with a bullion dealer. This is certainly easier to sell on when you wish to do so. If you do choose to do this, the account would be in the name of the company.

Note that you would not defer Corporation Tax by investing in gold, this would not be an allowable expense but an investment.

Not sure I would recommend it, personally I am not in favour of any investment that does not produce an income!

Alan