Reply to: Buying gold via Ltd?

[agility]

for me I only buy gold sovereigns.
They are VAT free and no CGT needs to be paid when you sell. That's the only gold like that.
Buy it direct from the Royal Mint.

Thanks Lance

[Lance]

Did any of you end up buying gold? if yes, how did you go about? was it bullionvault or was it physical gold that you went with?

for me I only buy gold sovereigns.
They are VAT free and no CGT needs to be paid when you sell. That's the only gold like that.
Buy it direct from the Royal Mint.

[agility]

Hello,

Can I please ask how did you avoid turning your trading company into investment company?
Unlike trading company, investment company doesn't have the 10% ER (Entrepreneurs relief) on tax when closing the company.

I would like to also buy gold and/or silver, but my accountant told me:

"We would not typically recommend investing directly through the limited company.

This is because if 20% or more of the company’s assets/income/expenses/time is involved in investments, the company’s status will change from a trading company to an investment company. As an investment company you would lose your entitlement for entrepreneur’s relief upon closure (on which our tax planning is based)."


Did you find some alternative way to do this please?
Or anyone else?

Thanks,
Peter

Did any of you end up buying gold? if yes, how did you go about? was it bullionvault or was it physical gold that you went with?

[pdanek]

I bought gold through my company using bullionvault. Confused the hell out of the accountants who tried to tell me it was personal and I had to declare it as a dividend. That was before I pointed out that you can only pay back into the account it came from i.e. the company bank account so they were talking out of their hoop!!

Hello,

Can I please ask how did you avoid turning your trading company into investment company?
Unlike trading company, investment company doesn't have the 10% ER (Entrepreneurs relief) on tax when closing the company.

I would like to also buy gold and/or silver, but my accountant told me:

"We would not typically recommend investing directly through the limited company.

This is because if 20% or more of the company’s assets/income/expenses/time is involved in investments, the company’s status will change from a trading company to an investment company. As an investment company you would lose your entitlement for entrepreneur’s relief upon closure (on which our tax planning is based)."


Did you find some alternative way to do this please?
Or anyone else?

Thanks,
Peter

[northernladuk]

Cannot remember correctly on UK position on bullion investments, but i think you need to pay VAT on Silver, hence it never took off in the UK as an investment vehicle for the common peasant. Need Swiss accounts etc.

This is why I questioned the difference earlier. You pay VAT on silver as it is a commodity but not on gold as it is currency, you are effectively just swapping money not buying anything? Is that right or am I just being a numpty. I am sure gold was different somehow

[oilyrag]

Whoa!!

There are court cases ongoing at the moment that stemmed from the attempt on the life of the Goldman Sachs trader who reported HSBC and JPMorgan alleged manipulation of the bullion markets. The ETFs are subscribed at a ratio of 100/1, just takes a tiny run on precious metal, ie a few bods rocking up to the bank and demanding physical delivery and all kinds of hell will ensue.

The mainstream press tried to supress this for ages, but it eventually broke through rumour then financial press, then mainstream:

Ex-Goldman trader blows whistle on silver and gold manipulation by JPMorgan, HSBC - NYPOST.com
Silver price manipulation: 'public deserves answers' - Citywire
Sunday NY Post Publishes Maguire Silver Manipulation Evidence - DaveInDenver - Seeking Alpha

Cannot remember correctly on UK position on bullion investments, but i think you need to pay VAT on Silver, hence it never took off in the UK as an investment vehicle for the common peasant. Need Swiss accounts etc.

[xchaotic]

I think gold will still have most perceived value in a time of a real crisis.
It's certainly heavy and it 'feels' expensive, so I'll stick to gold, thank you and like I said one that my Ltd physically has.

[ratewhore]

Can't you buy 'real physical' gold without having to ever see it... aren't there companies who will hold it for you so the asset is real but not in your house?

As for silver... you'd need a lot more for the same value which might be a pain for storing.

What about platinum?

The economic doom-mongers suggest buying silver to use as currency when the fiat money system completely collapses.

Just a thought...

[d000hg]

Can't you buy 'real physical' gold without having to ever see it... aren't there companies who will hold it for you so the asset is real but not in your house?

As for silver... you'd need a lot more for the same value which might be a pain for storing.

What about platinum?

[Wanderer]

You can invest in Gold funds that hold physical Gold for you and you just buy a share of the Gold ...

What if the fund doesn't actually hold enough gold bullion to back up their deposits? I've got a concern that they might use the money on high risk bets elsewhere in the hope of outperforming the price of gold and therefore making a profit. If the fund goes titsup then you have bugger all chance of getting your "gold" off them.

I'd want to "see the money" so to speak.

[ratewhore]

I bought gold through my company using bullionvault. Confused the hell out of the accountants who tried to tell me it was personal and I had to declare it as a dividend. That was before I pointed out that you can only pay back into the account it came from i.e. the company bank account so they were talking out of their hoop!!

[sal626]

AFAIK, silver is traded the same way as gold. Traditionally gold bullion is held to back up currencies. But from an investment point of view, you can buy any precious metal (or property, etc)…they should be treated the same way.

Like I said, I’m buying from savings, so not looked into the company aspects of it…

[northernladuk]

I’m looking to do the same, this very week in fact…except from personal account…

So not the same then

Another option you have is to get a locker at a bank to store the gold.
Also, consider silver – this is predicted to rise sharply as well…[/QUOTE]

Isn't silver different? I thought gold was considered a currency whereas other commodities are not which makes a difference to something or other to do with tax/profits etc? Just something I remember but don't know the details hence the question.

[sal626]

I’m looking to do the same, this very week in fact…except from personal account…

Another option you have is to get a locker at a bank to store the gold.
Also, consider silver – this is predicted to rise sharply as well…

[xchaotic]

Thanks for the valuable answers, looks good so far.

You can invest in Gold funds that hold physical Gold for you and you just buy a share of the Gold ... I think they are ETF funds. I'm thinking of doing the same as the Gov\BoE are deliberately devaluing the pound

I thought about this too, but if you spread your portfolio and treat Gold as a safe part, you should be able to get your hand on the physical stuff easily. Even with good ETFs, it could be tricky to get your gold in a real crisis (think riots etc), how do you get 1/3rd of the gold brick that ETF has collectively bought etc...
I haven't yet looked into setting up a share dealing account for my Ltd Co either...
But one day I will have a big enough portfolio to use these too