Coin And Bullion Sales Tax Exemption 2024 Update
02.10.2024
Coin And Bullion Sales Tax Exemption 2024 Update

When considering a gold coin sale, understanding the tax implications is essential. While sales tax exemptions on precious metals are a hot topic in the US, you might wonder how this information is relevant to investors and collectors in the UK. This blog will provide an update on sales tax exemptions for 2024 and discuss their significance for UK residents interested in gold coins and bullion.

What Is a Sales Tax Exemption?

A sales tax exemption on precious metals means that buyers don’t have to pay sales tax on the purchase of gold, silver, platinum, or palladium bullion and coins. These exemptions are often seen as a way to encourage investment in precious metals by reducing the overall cost for buyers. While this is a prominent issue in the US, understanding these dynamics can be valuable for UK investors keeping an eye on international markets.

Current Sales Tax Exemptions in the US

As of 2024, 37 US states have enacted laws providing partial or complete sales tax exemptions on precious metal bullion and coins. This trend is driven by the recognition that such taxes can discourage investment and business growth in the bullion and numismatic sectors. States like Texas, Florida, and Arizona are among those that have implemented favourable tax policies, making them attractive locations for gold coin sales and other precious metal investments.

For UK investors looking to purchase from US dealers, these exemptions can impact pricing and overall investment decisions. For example, buying gold coins from a state with no sales tax on precious metals could reduce costs, especially when considering bulk purchases.

Relevance of US Sales Tax Exemptions to UK Investors

You might be asking, “Why should I care about US sales tax exemptions if I’m in the UK?” There are a few reasons why this is worth noting:

  1. Cross-Border Purchases
    If you're considering buying gold coins from the US, knowing which states offer sales tax exemptions can help you choose the best place to buy from, minimising extra costs.

  2. Market Trends
    Tax exemptions can affect the demand and supply of gold coins in the US, influencing global prices. Keeping an eye on these changes can help you make informed decisions about the timing of your own gold coin sales.

  3. Potential for Similar Policies
    While the UK does not impose VAT on investment gold, observing US policies can provide insights into potential future changes in UK tax laws regarding precious metals.

Key States to Watch in 2024

In 2024, Kentucky and Wisconsin are the two key states to watch in the US, as both are considering new tax exemptions on precious metals. If these exemptions pass, it could further expand gold coin sales and other precious metals investments.

  • Wisconsin: Senate Bill 33 is under consideration, proposing a sales tax exemption for bullion and coins containing at least 35% gold, silver, copper, platinum, or palladium.

  • Kentucky: House Bill 101 and Senate Bill 105 are aiming to establish exemptions for precious metals and coins. Although similar efforts were stalled in 2023, the outlook is more favourable this year.

The success of these efforts could increase pressure on other states to adopt similar policies, which would further enhance the appeal of buying gold coins and bullion in the US.

How Does This Affect UK Investors?

For UK investors, any reduction in US sales tax can make buying from US dealers more attractive. However, it’s crucial to factor in shipping costs, import duties, and currency exchange rates. While the US might offer lower upfront prices due to these tax breaks, these additional costs could offset the savings.

Moreover, understanding these tax exemptions can help UK investors in comparing international markets. For example, if US-based bullion dealers become more competitive due to these exemptions, it could influence pricing and availability in the UK market as well.

A Brief Look at the UK Tax Situation

In the UK, investment gold (gold coins and bars of at least 99.5% purity) is exempt from VAT, making it an attractive investment option. This policy aims to encourage investment in gold as a store of value. However, silver and other precious metals do not enjoy the same VAT-free status, which can influence the types of metals UK investors choose.

Understanding the differences between US and UK tax policies can help investors make more informed decisions. For example, the UK’s VAT exemption on investment gold could be seen as more favourable compared to the varied tax landscape in the US.

Why Tax Policies Matter for Gold Coin Sales

Tax policies significantly impact the precious metals market. For example, a favourable tax environment can boost local demand and increase the number of dealers and coin shows in that region. For UK investors, keeping track of these changes can help in planning purchases or sales of gold coins and bullion.

The recent push in US states to introduce or expand sales tax exemptions shows a growing recognition of precious metals as a strategic asset. For UK investors looking to diversify their portfolio with US bullion or to understand global market trends, this is a crucial development to watch.

Final Thoughts on the 2024 Sales Tax Exemption Update

Whether you're considering selling your gold coin or simply looking to understand global trends, keeping an eye on tax policies is essential. The efforts in Kentucky, Wisconsin, and other US states to expand sales tax exemptions could create new opportunities for investors. For UK buyers, this means more competitive pricing and potentially better deals from US dealers, provided all costs and regulations are accounted for.

In the UK, the VAT exemption on investment gold remains a key advantage, making it an attractive option for those looking to invest in a stable asset. However, by understanding the international tax landscape, UK investors can make more informed decisions, taking advantage of global opportunities while minimising costs.

As we move through 2024, the push for tax exemptions in the US is something to watch closely. It could have a ripple effect on the global precious metals market, influencing prices and availability far beyond the US borders. So, whether you're looking to buy, sell, or simply stay informed, keep an eye on these developments—they might just change the way you approach your next gold coin sale.

Ready to invest in gold coins? Visit our website for the latest deals and secure your assets with trusted experts. Whether you’re buying or selling, we make your gold coin sale easy and efficient. Click here to browse! 


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