Capital gains tax on gold
Jan 26th 2009, 2:53 pm
#1
Just Joined
Thread Starter
Joined: Jan 2009
Posts: 16
Capital gains tax on gold
I have a bit of a strange question but hopefully someone might be able to help me.
I am a UK citizen and live and work in Spain. I have some savings in pounds in the UK and was planning to buy property in Spain. But given the current economic climate have decided to wait a while.
The problem is I have little faith in Sterling and would like to get out of it as soon as possible, but I don’t think any other currency is any more secure. I am planning on buying gold and waiting for a year or so. The vault that I’d buy from say that when I liquidise the gold I can change it directly into Euros in a Spanish account (they have vaults in London, new york and Zurich).
What would be the situation for paying tax on this?
From what I can gather, investment-grade gold is exempt from VAT and IVA (in both Spain and UK). But I think I would have to pay capital gains tax on any profits made (assuming there are any).
Would I pay the tax in Spain and UK? (With a tax deduction on whichever is worth less)
In Spain, I think there are deductions if you immediately re-invest any capital gains in a property. Could this apply here, if I bought a flat directly?
Thanks,
T
I am a UK citizen and live and work in Spain. I have some savings in pounds in the UK and was planning to buy property in Spain. But given the current economic climate have decided to wait a while.
The problem is I have little faith in Sterling and would like to get out of it as soon as possible, but I don’t think any other currency is any more secure. I am planning on buying gold and waiting for a year or so. The vault that I’d buy from say that when I liquidise the gold I can change it directly into Euros in a Spanish account (they have vaults in London, new york and Zurich).
What would be the situation for paying tax on this?
From what I can gather, investment-grade gold is exempt from VAT and IVA (in both Spain and UK). But I think I would have to pay capital gains tax on any profits made (assuming there are any).
Would I pay the tax in Spain and UK? (With a tax deduction on whichever is worth less)
In Spain, I think there are deductions if you immediately re-invest any capital gains in a property. Could this apply here, if I bought a flat directly?
Thanks,
T
Jan 26th 2009, 8:40 pm
#2
Democracy advocate
Joined: Mar 2006
Posts: 12,460
Re: Capital gains tax on gold
Can't help you on the CGT issue, but I think you need to be clear what you are wanting to do;
(a). Play on the commodity market to make money
(b). Buy a property is Spain
If (b). then you want your money in Euro's, the only issue is when to change from Sterling - I suggest you research things like the Big Mac index to help decide which currencies are over/undervalued.
If (a). then good luck, gold is at its highest for nearly 30 years, buying at a peak might not be a good idea http://goldprice.org/30-year-gold-price-history.html . It could conceivably come down in value in this slump due to a substantial reduction in electronics manufacturing in Asia.
My experience of trying to trade in commodities or currency is that you need to be either a professional with a band of researchers to-hand, or just plain lucky.
Good luck
(a). Play on the commodity market to make money
(b). Buy a property is Spain
If (b). then you want your money in Euro's, the only issue is when to change from Sterling - I suggest you research things like the Big Mac index to help decide which currencies are over/undervalued.
If (a). then good luck, gold is at its highest for nearly 30 years, buying at a peak might not be a good idea http://goldprice.org/30-year-gold-price-history.html . It could conceivably come down in value in this slump due to a substantial reduction in electronics manufacturing in Asia.
My experience of trying to trade in commodities or currency is that you need to be either a professional with a band of researchers to-hand, or just plain lucky.
Good luck
Jan 27th 2009, 2:56 pm
#3
BE Enthusiast
Joined: Nov 2005
Location: In your nightmares.
Posts: 834
Re: Capital gains tax on gold
Can't help you on the CGT issue, but I think you need to be clear what you are wanting to do;
(a). Play on the commodity market to make money
(b). Buy a property is Spain
If (b). then you want your money in Euro's, the only issue is when to change from Sterling - I suggest you research things like the Big Mac index to help decide which currencies are over/undervalued.
If (a). then good luck, gold is at its highest for nearly 30 years, buying at a peak might not be a good idea http://goldprice.org/30-year-gold-price-history.html . It could conceivably come down in value in this slump due to a substantial reduction in electronics manufacturing in Asia.
My experience of trying to trade in commodities or currency is that you need to be either a professional with a band of researchers to-hand, or just plain lucky.
Good luck
(a). Play on the commodity market to make money
(b). Buy a property is Spain
If (b). then you want your money in Euro's, the only issue is when to change from Sterling - I suggest you research things like the Big Mac index to help decide which currencies are over/undervalued.
If (a). then good luck, gold is at its highest for nearly 30 years, buying at a peak might not be a good idea http://goldprice.org/30-year-gold-price-history.html . It could conceivably come down in value in this slump due to a substantial reduction in electronics manufacturing in Asia.
My experience of trying to trade in commodities or currency is that you need to be either a professional with a band of researchers to-hand, or just plain lucky.
Good luck
Sound advice,
My experience is that when man in the street thinks its a good time to buy into something,smart money people are the one selling to you taking profit and getting out.
