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VAT on rare metals

My client has been offered a 'once in a lifetime' chance to invest in Chinese rare metals. These will be delivered to him in physical form in London. He has been told that VAT is payable if he invests personally, but not if he invests via a SIPP. Is this correct,please?

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To answer the question we would need to know:0

 

a. Are these actual metals that are being bought and sold?

 

b. Are they spot future contracts, or though an investment fund?

 

c. What are the full details of what the SIPP will hold?

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By noradh
17th Aug 2012 20:14

Physical

As I said, these are PHYSICAL. They will be delivered to him in a big parcel. No futures involved. The SIPP has normal equity investments.

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That is the difeerance then! If the metals are being supplied in te Uk, then they are goods!

 

If it is an invesetment then it is equities, financial instruments

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03rd Sep 2012 14:00

The importation of metals...

...into the UK will be liable to import VAT at 20%, irrespective of whether they are imported personally or in the name of a SIPP. Incidentally, customs duties may also be payable, in which case the VAT is calculated on the value including such duties.

It may be possible to defer payment of duty and VAT - potentially indefinitely - if the metals are not imported into the UK per se but are entered into a customs warehouse, i.e.are not be entered into free circulation and are stored there.

Hopes this helps.

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