Download - 2013-12-05 BULLIONROCK 3
![Page 1: 2013-12-05 BULLIONROCK 3](https://reader035.vdocuments.mx/reader035/viewer/2022062304/55d519e2bb61ebb0228b45ef/html5/thumbnails/1.jpg)
Taxation & Precious Metals
Tony Mancini
5 December 2013
HOW DO YOU HOLD YOURS?
![Page 2: 2013-12-05 BULLIONROCK 3](https://reader035.vdocuments.mx/reader035/viewer/2022062304/55d519e2bb61ebb0228b45ef/html5/thumbnails/2.jpg)
© 2013 KPMG Channel Islands Limited, a Jersey Company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.
2
HOW DO YOU HOLD YOURS?
Physical Ownership
Investment Fund
Partnership
Coins
BullionRock Gold Fund
VAT
![Page 3: 2013-12-05 BULLIONROCK 3](https://reader035.vdocuments.mx/reader035/viewer/2022062304/55d519e2bb61ebb0228b45ef/html5/thumbnails/3.jpg)
© 2013 KPMG Channel Islands Limited, a Jersey Company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.
3
DIRECT OWNERSHIP & PHYSICAL ASSETS
Gold Silver
Platinum Palladium
Metal = asset for capital gains tax
CGT on profit of sale
Chattel exemption may apply if an individual bar is sold for less
than £6,000
Watch out for “trading”
![Page 4: 2013-12-05 BULLIONROCK 3](https://reader035.vdocuments.mx/reader035/viewer/2022062304/55d519e2bb61ebb0228b45ef/html5/thumbnails/4.jpg)
© 2013 KPMG Channel Islands Limited, a Jersey Company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.
4
INVESTMENT FUND
Asset for CGT = interest in fund
Underlying investment less relevant
Open-ended offshore structure =
offshore income gain
Applies to companies and unit trusts
Precious Metal Fund
![Page 5: 2013-12-05 BULLIONROCK 3](https://reader035.vdocuments.mx/reader035/viewer/2022062304/55d519e2bb61ebb0228b45ef/html5/thumbnails/5.jpg)
© 2013 KPMG Channel Islands Limited, a Jersey Company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.
5
Transparent for tax purposes
Same as ownership and physical assets
PARTNERSHIP
Partnership
![Page 6: 2013-12-05 BULLIONROCK 3](https://reader035.vdocuments.mx/reader035/viewer/2022062304/55d519e2bb61ebb0228b45ef/html5/thumbnails/6.jpg)
© 2013 KPMG Channel Islands Limited, a Jersey Company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.
6
COINS
Coins that are legal tender = currency
asset for CGT
British coins are not an asset for CGT:• Gold Britannia• Silver Britannia• Gold Sovereigns (post 1837)
Foreign coins = foreign currency
CG on exchange movements and actual gain• Krugerrands• US Eagle
![Page 7: 2013-12-05 BULLIONROCK 3](https://reader035.vdocuments.mx/reader035/viewer/2022062304/55d519e2bb61ebb0228b45ef/html5/thumbnails/7.jpg)
© 2013 KPMG Channel Islands Limited, a Jersey Company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.
7
BULLIONROCK GOLD FUND
BullionRock Gold Fund is a partnership.
Investors treated as owning gold coins.
Gold Britannias = legal tender
Investors are holding currency directly
No CGT on disposal of partnership interest
BRGF
Gold Britannias
![Page 8: 2013-12-05 BULLIONROCK 3](https://reader035.vdocuments.mx/reader035/viewer/2022062304/55d519e2bb61ebb0228b45ef/html5/thumbnails/8.jpg)
© 2013 KPMG Channel Islands Limited, a Jersey Company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.
8
VAT ON PRECIOUS METALS
Precious Metals sold by EU/UK business liable to VAT.
Investment Gold is exempt from VAT in UK (includes investment gold coins).
Silver Coins not exempt but collectors’ items qualify for reduced rate of 5%.
No VAT in Guernsey.
![Page 9: 2013-12-05 BULLIONROCK 3](https://reader035.vdocuments.mx/reader035/viewer/2022062304/55d519e2bb61ebb0228b45ef/html5/thumbnails/9.jpg)
ContactTony Mancini
Executive Director, Tax
Tel: +44 (0) 1481 741845
Fax: +44 (0) 1481 722373
Email: [email protected]
Web: www.kpmg.com/channelislands
Thank you
![Page 10: 2013-12-05 BULLIONROCK 3](https://reader035.vdocuments.mx/reader035/viewer/2022062304/55d519e2bb61ebb0228b45ef/html5/thumbnails/10.jpg)
© 2013 KPMG Channel Islands Limited, a Jersey Company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The KPMG name, logo and ‘cutting through complexity’ are registered trademarks or trademarks of KPMG International Cooperative (KPMG International).