What is VAT-Free Silver & Platinum?

How Does Vaulted Storage Work?

Whether you are already storing bullion with us, or opening a new storage account with our VAT-free products, all holdings are managed through a single straightforward storage fee.

 You have full visibility of your investments through the Vaulted Storage tab in your account, and have the flexibility to fix a spot price to sell stored items at any time with our "Sell Items" button. Further information on storing your bullion with us can be found on our Vaulted Storage page and our Selling From Vaulted Storage page.

What Kind of Products Are Available?

Browse our full range of VAT-free silver and bars. We are always trying to source the best products available for storage through our bonded warehouse options, if an option is showing as out of stock, sign up for a stock alert and we will look to source the product once viable.

VAT Free Silver 1 oz CGT Exempt Coins - Loco Zurich

VAT Free Silver 1 oz CGT Exempt Coins - Our Choice Chards

These VAT-Free British 1 oz silver coins utilise UK pound sterling legal tender bullion and incur no capital gains tax (CGT) at time of sale. All coins contain one ounce of fine silver.

Quantity	Premium	Price Per Item	Total	Total
1	£17.00	£72.97	£72.97	£72.97 Price Per Item: £72.97 Est UK Delivery £6.00
5	£16.95	£72.92	£364.60	£364.60 Price Per Item: £72.92 Est UK Delivery £6.00
10	£16.90	£72.87	£728.70	£728.70 Price Per Item: £72.87 Est UK Delivery £6.00
25	£16.50	£72.47	£1,811.75	£1,811.75 Price Per Item: £72.47 Est UK Delivery £7.00
50	£16.00	£71.97	£3,598.50	£3,598.50 Price Per Item: £71.97 Est UK Delivery £13.00
100	£15.80	£71.77	£7,177.00	£7,177.00 Price Per Item: £71.77 Est UK Delivery £30.60
250	£15.60	£71.57	£17,892.50	£17,892.50 Price Per Item: £71.57 Est UK Delivery £37.60
500	£15.20	£71.17	£35,585.00	£35,585.00 Price Per Item: £71.17 Est UK Delivery £64.20
1000	£15.10	£71.07	£71,070.00	£71,070.00 Price Per Item: £71.07 Est UK Delivery £129.40
2000+	£15.00	£70.97	£141,940.00	£141,940.00 Price Per Item: £70.97 Est UK Delivery £244.20

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1000 oz Silver VAT-Free Bar - Loco Zurich

These investment-grade 1000 oz Silver Bars are selected from a variety of LBMA (London Bullion Market Association) approved refiners on the 'Good Delivery' list, and contain approximately 31.1 kilograms of pure, 999 Fine Silver.

It's important to note that London Good Delivery silver bars can weigh between 750 troy ounces (23 kilograms) and 1,100 troy ounces (34 kilograms). However, bars sold through our product contain approximately between 930 and 1,080 troy ounces. In any case, you will only pay for the exact metal weight of the ordered bar, plus the premium.

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What Is the Definition of Loco in Precious Metal Investment?

Loco is the short abbreviation for location, derived from the Latin, "locus", meaning "a place". It is primarily used in commerce and logistics to specify where commodities or assets are held.

As an example, "Loco London" is a term associated with the London Bullion Market Association (LBMA) to describe bullion that is physically held in the London vaults which underpin their over-the-counter (OTC) trading for gold and silver bullion. Today, LBMA refiners oversee the annual production of 5,000 tonnes of gold and 30,000 tonnes of silver via OTC trading. Around $25 billion USD worth of gold transactions are finalised daily within the global OTC market, with London acting as its primary hub.

Common "Loco Zurich" Definition

Loco Zurich means in respect of an account holding bullion, the custody, trading or clearing of such bullion in Zurich, Switzerland (See Source)

London Bullion Market Association Definition

Loco Zurich is simply a metal trade where the metal part of the transaction settles over accounts held in Zurich. (See Source)

Why Are Loco Storage Options Important for Silver & Platinum Investors?

With your investment being stored in a secure vault situated outside of the UK, your purchase and holdings are exempt from UK VAT obligations, resulting in a higher quantity of metal for your investment.

However, as our Loco Zurich range and Loco Frankfurt VAT-Free silver 1 oz coins are intended to be sold as a 'storage-only' item, it is important to note that due to tax and cost implications, you will never physically receive or take delivery of products purchased with overseas storage in mind. The offerings are solely intended as an investment vehicle and not for personal collecting.

Are Loco Storage Options Secure?

Swiss and German storage facilities are well-known for their state-of-the-art security and confidentiality benefits, capitalising on their stable political environments and strong legal systems. With strict privacy regulations and a history of banking confidentiality, these facilities prioritise privacy and protect valuable assets and sensitive data.

We do charge minimal storage fees for Loco Zurich and Loco Frankfurt products, but this is still considerably cheaper than having them delivered.

What Is Value Added Tax (VAT)?

European Union Definition

 VAT is a general, broadly based consumption tax assessed on the value added to goods and services. (See Source)

The UK standard VAT rate is currently 20%, which has been the case since the rise from 17.5% in January 2011. You can work out how much tax you are paying by dividing the sales amount by a value of 6. This means for every £100 you spend you are paying £16.66 in tax, not an insignificant amount.

Some products such as milk, books and children’s clothes carry no tax and are classified as zero-rated. Newspapers, magazines and maps are zero-rated (although their digital counterparts can be taxable), whereas things like energy supplies are usually taxed at 5%.

More relevant here is that investment gold has been exempt from VAT since January 1st 2000 but silver, platinum and palladium have all remained subject to the standard rate as they are considered industrial commodities. This can make gold an easier investment if your funds allow, but that's not to say silver doesn't make a great investment either, with its price typically directly linked with gold. If you believe the price of silver to be low, you can offset the VAT amount when selling so long as the market has risen to clear the tax rate.

VAT-Free Vs Special Scheme VAT Silver?

The UK has a special margin scheme for secondary market silver where you only pay VAT on the profit you make when you come to sell. This means if we sell a silver coin for £20 that we have previously bought for £15, we would only pay VAT (at 16.67%) on the £5 profit, or 83 pence. Likewise if you were to sell the coin onward for £30, you would then pay VAT on your £10 profit which would be £1.67.

When buying physical metals however, it's always worth reviewing the big picture to take into consideration potential insurance costs, as well as the level of security the investment will have and even how to avoid damage to the stored items. We cover this further in our How to Store Your Gold, Silver and Platinum blog page.

All Things Considered

For investors looking to invest in silver and platinum without paying VAT on bullion, Loco storage options offer a strategic solution. By exploring VAT-free silver and platinum purchases, understanding their benefits, and navigating the buying process, you can enhance your precious metal portfolio while mitigating tax implications.