Buying gold bullion for business

Yes as a business owner you can purchase gold through a limited company or other legal entity. The company becomes the legal owner of the physical precious metal which is recorded as an asset on the company’s balance sheet. At GoldRepublic you can open a business account and purchase gold silver or platinum in the same way as a private investor.

Yes investment gold with a purity of at least 99.5 percent is exempt from VAT across the UK and EU regardless of whether it is purchased privately or through a company. For silver and platinum VAT can be avoided by choosing storage in a bonded warehouse such as in Zurich or Frankfurt. This ensures that your full investment is immediately converted into physical precious metal.

Company owned gold is recorded as an asset on the balance sheet and is valued at purchase cost or a lower market value. Corporation tax is only payable when the gold is sold at a profit. Any losses can generally be offset against company profits. Always consult your accountant or financial adviser for the most appropriate valuation method in your specific situation.

The main advantage is the deferral of taxation corporation tax is only payable when the gold is actually sold unlike certain private investment scenarios where tax may apply annually. In addition gold provides protection of company capital against inflation and is highly liquid after selling the proceeds are typically available within a few working days.

Yes at GoldRepublic you can open a business account in addition to a private account in the name of your limited company or other business structure. This requires a recent Companies House extract and additional company documentation. After verification you can buy and sell gold silver and platinum through your business account under the same conditions as private clients.

When investing through a limited company you pay UK corporation tax on realised profits when the gold is sold and losses can generally be offset against company profits. When investing privately gold is typically subject to UK capital gains tax CGT. Which structure is more tax efficient depends on your personal circumstances.

Gold purchased through a company is recorded on the balance sheet as an investment under current or fixed assets valued at purchase cost. It may also be written down to a lower market value if the price declines allowing an unrealised loss to reduce taxable profit. The chosen valuation method should be applied consistently in subsequent years.

Corporation tax is only payable when you sell the gold and realise a profit. As long as you hold the gold any increase in value is not taxed. UK corporation tax rates depend on profit levels with a main rate up to 25 percent. If profits are later distributed as dividends additional personal tax may apply.

Yes through a business account with GoldRepublic you can also purchase physical silver and platinum in addition to gold. When stored in a bonded warehouse in Zurich or Frankfurt silver and platinum can be purchased without VAT which can result in significant savings compared to physical delivery in the UK. The tax treatment is similar to that of gold with the metals recorded on your company’s balance sheet.

Many business owners use gold as part of their long term wealth or pension planning within a limited company. Gold offers long term value preservation and protects capital against inflation. Because tax is only payable upon sale the investment can grow tax deferred while held. Always consult a financial adviser for the optimal structure within your pension planning.

There is no maximum limit on how much company capital you can invest in gold through GoldRepublic. However it is advisable to align the investment with your overall company assets and liquidity needs. While gold is highly liquid and can be converted into cash within a few working days its price may fluctuate in the short term. A financial adviser can help determine an appropriate allocation.

Yes if your company values gold at the lower market value and the price has fallen compared to the purchase price the loss can generally be offset against company profits in the same financial year. This reduces the corporation tax payable. The exact treatment depends on your chosen accounting method so always consult your accountant.