Buy Silver UK: The Complete Tax-Efficient Buying Guide 2026
How to buy silver bullion in the UK while minimising 20% VAT and Capital Gains Tax. Compare dealer premiums, choose between Silver Britannia coins and bars, and explore storage options. Check today's live silver prices before you buy.
Silver Spot Price Today
Fine Silver (999) Per Gram
£1.79
Per Troy Ounce
£55.83
Source: London Bullion Market Association (LBMA) • Last updated: 19/02/2026
Where Can I Buy Silver Bullion Bars in the UK?
The best places to buy silver bullion in the UK are specialist online dealers such as The Royal Mint, BullionByPost, Atkinsons, Sharps Pixley, and Chards. These dealers are LBMA-associated, offer competitive premiums over spot price, provide secure storage options, and guarantee to buy back your silver at market rates.
Avoid high street jewellers and pawnbrokers for investment silver. They lack XRF testing equipment, charge higher premiums, and typically do not offer buyback guarantees. For investment-grade silver, always use a specialist bullion dealer.
| Dealer | Storage Location | Buyback Rate | Key Feature |
|---|---|---|---|
| The Royal Mint | Llantrisant, Wales | 98-99% | Sovereign security; no minimum fees |
| BullionByPost | Zurich, Switzerland | 97-100% | 6 months free storage on £2,500+ |
| Atkinsons | Secure UK vaults | 95-98% | Best availability of VAT Margin items |
| Sharps Pixley | London / Zurich | 96-98% | LBMA Full Member; Mayfair showroom |
| Chards | Blackpool / Overseas | 95-97% | Tiered storage rates; massive catalogue |
| UK Bullion | UK (Brinks/Loomis) | 95-96% | Simple online storage management |
Buyback rates shown as percentage of spot price. Rates for investment-grade bullion held in dealer storage. Scrap and secondary silver: 90-92% of spot.
What Are the Tax Implications of Buying Silver Bullion in the UK?
Silver bullion delivered to a UK address attracts 20% VAT on the full purchase price — unlike investment gold, which is VAT-free. This makes tax planning essential for silver investors. There are three legal routes to reduce or eliminate this cost.
Standard HMRC rating for all silver delivered within the UK. The 20% VAT is non-recoverable for private individuals, meaning it is a direct cost to the buyer.
Example: A 1oz Britannia with a spot value of £55.77 would cost approximately £66.93 including VAT and dealer premium.
Under the Value Added Tax Terminal Markets Order 1973, LBMA Full Members can offer zero-rate VAT to investors storing silver in custody vaults. This gives you 20% more purchasing power compared to home delivery.
Important: VAT becomes payable if you later take physical delivery. Most investors sell back through the dealer to maintain the VAT-free status.
Dealers selling pre-owned silver (previously purchased from private individuals) can charge VAT only on their profit margin, not the full sale price. This significantly reduces your landed cost.
Formula: VAT = (Selling Price − Purchase Price) ÷ 6. Pre-owned Britannias and 1kg bars are the most commonly available under this scheme. Atkinsons typically has the best Margin Scheme availability.
CGT tip: Silver Britannia coins are CGT-exempt as UK legal tender under the Coinage Act 1971. Silver bars and foreign coins (Eagles, Maples) face 24% CGT on gains above the £3,000 annual allowance. For most UK investors, Britannias are the tax-optimal choice. See our Silver Britannia guide for full details.
How to Choose Between Silver Bullion Bars and Coins
The choice between silver bars and coins in the UK comes down to a trade-off between lower premiums (bars) and tax efficiency (coins). Silver Britannia coins carry higher premiums but are CGT-exempt. Silver bars offer the lowest cost per ounce but face 24% CGT on any appreciation.
- +CGT-exempt as UK legal tender (£2 face value)
- +99.9% fine silver, Royal Mint anti-counterfeiting features
- +Highly liquid — all major dealers buy back at 97-100% of spot
- −Higher premiums: 18-25% new, 10-15% margin scheme
- −Less efficient for very large positions (storage volume)
Best format: Tubes (25 coins) or Monster Boxes (500 coins) for lowest per-unit premium.
- +Lowest premiums: 4-12% depending on size
- +Available from 100g to 1,000oz (London Good Delivery)
- +Most weight per pound spent — ideal for bulk stacking
- −24% CGT on gains above £3,000 annual allowance
- −Larger bars less divisible — harder to sell in parts
Best brands: Cast bars (Metalor, Umicore, Heraeus) for lowest premiums. Minted bars (PAMP Suisse, Royal Mint) for cleaner finish.
Worked Example: Bars vs Coins Over 5 Years
Assume you invest £10,000 in silver and prices double over 5 years:
1kg Bars (10% premium)
Initial value: £9,091 at spot
Value after doubling: £18,182
Gain: £9,091
CGT at 24%: −£2,182 → Net: £15,909
Britannias (20% premium)
Initial value: £8,333 at spot
Value after doubling: £16,667
Gain: £8,333
CGT: £0 (exempt) → Net: £16,667
Despite the higher premium, Britannias net £758 more in this scenario — and the advantage grows with larger gains.
What Are the Typical Premiums on Silver Bullion Sold in the UK?
Silver bullion premiums are the amount dealers charge above the spot price. UK premiums are higher than for gold because of the 20% VAT on silver. Pre-owned items under the VAT Margin Scheme carry significantly lower premiums.
| Product | Premium (New) | Margin Scheme | CGT Status | Best For |
|---|---|---|---|---|
| 1oz Silver Britannia | 18-25% | 10-15% | Exempt | All-purpose UK investment |
| 1kg Silver Bar | 8-12% | 5-8% | Taxable (24%) | Bulk stacking (large budgets) |
| 100oz Silver Bar | 4-7% | N/A | Taxable (24%) | Lowest premium (storage only) |
| 1oz Silver Eagle | 25-35% | 15-20% | Taxable (24%) | International recognition |
| 1oz Silver Philharmonic | 20-28% | 12-18% | Taxable (24%) | European exposure |
The “Eagle Trap”: American Silver Eagles and Canadian Maple Leafs carry premiums of 25-35% and face 24% CGT in the UK because they are not British legal tender. Silver Britannias offer similar quality at lower premiums with full CGT exemption.
How to Start Investing in Silver Bullion in the UK
Starting a silver investment in the UK involves four key decisions: physical vs paper, product selection, dealer choice, and storage. Here is the step-by-step process for buying physical silver.
Choose Physical or Paper Silver
Physical silver (coins and bars) gives you direct ownership but carries 20% VAT. Paper silver via ETCs (e.g., iShares SSLN at 0.20% TER) avoids VAT entirely and can be held in an ISA for CGT-free gains. Consider a split strategy using both.
Select Your Products
For most UK investors, Silver Britannia coins are the best starting point — CGT-exempt, highly liquid, and available from every major dealer. For budgets above £5,000, consider adding 1kg bars under the Margin Scheme for lower premiums.
Choose a Dealer
Look for LBMA-associated dealers with transparent pricing, secure storage, and buyback guarantees. Compare premiums across 2-3 dealers before buying. Use the dealer comparison table above to narrow your choice.
Decide on Storage
Home delivery means paying 20% VAT but having physical possession. Bonded vault storage eliminates VAT and includes insurance, but you pay annual storage fees (typically 0.5-2% of value). For most investors, bonded storage is more cost-effective above £2,500.
Place Your Order
Most dealers require an account with basic ID verification (photo ID + proof of address). Payment is typically by bank transfer. Prices are locked at the time of order, not when payment clears.
Which UK Companies Offer Secure Storage for Silver Bullion?
Secure storage is critical for silver investors, both for insurance purposes and for maintaining the VAT-free status of bonded purchases. Here are the main storage options and their costs.
| Provider | Annual Fee | Notes |
|---|---|---|
| The Royal Mint | 1-2% + VAT | 1% for bars/tubes, 2% for single capsules. Sovereign security in Llantrisant, Wales. |
| BullionByPost | Varies | 6 months free on orders over £2,500. Zurich vaults. 100% buyback for vaulted silver. |
| BullionVault | 0.48% | $8/month minimum. Zurich storage avoids UK VAT. Includes insurance. |
| Sharps Pixley | Varies | LBMA Full Member. London and Zurich vaults. VAT-free under Terminal Markets Order. |
| Home Storage | £50-200/yr | Specialist insurance rider required. Standard policies limit valuables to £2,000 per item. EuroGrade safe recommended. |
Home storage warning: Standard contents insurance policies typically cap individual valuables at £2,000 and total valuables at £25,000-£50,000. A Monster Box of 500 Britannias could exceed these limits. Specialist policies from Hiscox or HWS Specialty cover bullion up to £500,000.
How to Avoid Counterfeit Silver Bullion When Buying in the UK
Counterfeit silver is a growing problem, particularly on online marketplaces and from unknown sellers. Here is how to protect yourself when buying silver bullion in the UK.
- ✓LBMA-associated dealers who source from approved refiners
- ✓The Royal Mint directly for Britannia coins with anti-counterfeiting features
- ✓Dealers using XRF testing, ultrasonic testing, and density verification
- ✓Known bar brands: Metalor, Umicore, Heraeus, PAMP Suisse
- ✗Marketplace sellers (eBay, Facebook, Gumtree) without authentication
- ✗Prices significantly below spot — if it seems too good to be true, it is
- ✗Unknown refinery brands without LBMA Good Delivery status
- ✗Sellers unwilling to provide certificates of authenticity or receipts
What Documents Do I Need to Buy Silver Bullion in the UK?
UK bullion dealers are classified as High Value Dealers and supervised by HMRC for anti-money laundering (AML) compliance. The documentation required depends on the transaction value.
| Transaction Value | Requirement | What You Need |
|---|---|---|
| Under £5,000 | Basic CDD | Risk-based ID check (many dealers require ID anyway) |
| £5,000-£10,000 | Enhanced CDD | Photo ID (passport or driving licence) + proof of address (utility bill within 3 months) |
| Over £10,000 | Full AML statement | Source-of-wealth declaration often required |
| Over £50,000 | Institutional review | Corporate-level due diligence for large purchases |
Most reputable dealers now require photo ID and proof of address for all purchases regardless of value. Payment is made by bank transfer to an account in the buyer's name.
Frequently Asked Questions
Where can I buy silver bullion bars in the UK?
The best UK dealers for silver bullion bars are The Royal Mint (98-99% buyback), BullionByPost (97-100% buyback for vaulted silver), Atkinsons (best for Margin Scheme items), and Sharps Pixley (LBMA Full Member). All offer online ordering, secure storage, and guaranteed buyback programmes.
What are the tax implications of buying silver bullion in the UK?
Silver attracts 20% VAT on delivery — unlike gold, which is VAT-free. You can avoid this with bonded vault storage (0% VAT) or reduce it via the VAT Margin Scheme on pre-owned silver. Silver Britannia coins are CGT-exempt as UK legal tender. Silver bars face 24% CGT on gains above £3,000.
What are the typical premiums on silver bullion sold in the UK?
Premiums depend on product type: 1oz Silver Britannia coins carry 18-25% premiums (new) or 10-15% under the Margin Scheme. 1kg bars carry 8-12% premiums (new) or 5-8% (Margin Scheme). 100oz bars have the lowest premiums at 4-7%. At today's spot price of £55.83/oz, a new Britannia costs approximately £66.93.
How to choose between silver bullion bars and coins?
For most UK investors, Silver Britannia coins are the better choice despite higher premiums. They are CGT-exempt as UK legal tender, meaning no tax on any gains. Silver bars offer lower premiums (8-12% vs 18-25%) but face 24% CGT. In a rising market, the CGT saving on Britannias typically outweighs the premium difference.
Which UK companies offer secure storage for silver bullion?
The Royal Mint (1-2% + VAT p.a.), BullionByPost (Zurich vaults, 6 months free on £2,500+), BullionVault (0.48% p.a., $8 minimum), and Sharps Pixley (London/Zurich) all offer insured vault storage. Bonded storage also eliminates the 20% VAT on your purchase.
How to avoid counterfeit silver bullion when buying in the UK?
Buy only from LBMA-associated dealers who source bars from approved refiners (Metalor, Umicore, Heraeus, PAMP Suisse). Royal Mint Britannia coins include anti-counterfeiting features. Avoid marketplace sellers and prices significantly below spot. Reputable dealers verify all products with XRF, ultrasonic, and density testing.
How to start investing in silver bullion in the UK?
Open an account with a reputable dealer (The Royal Mint, BullionByPost, or Atkinsons). Choose Britannia coins for CGT exemption or bars for lowest premiums. Decide between home delivery (20% VAT) or bonded storage (0% VAT). Alternatively, buy a silver ETC like iShares SSLN (0.20% TER) inside a Stocks and Shares ISA for zero VAT and CGT-free gains. Use our silver calculator to check today's prices.
Check Today's Silver Prices Before You Buy
Live silver prices per gram for all purities, updated daily
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Compare →About the Author
Founder & Market Researcher
Taro has been actively investing in precious metals and financial markets for over 15 years. Frustrated by the lack of transparent, accurate gold pricing information in the UK, he built London Gold Exchange as a data-driven resource for fellow investors. The site combines real-time market data, verified dealer information from 242+ UK businesses, and insights drawn from years of hands-on experience in the gold market.
- ✓15+ years investing in precious metals & equities
- ✓Built verified database of 242+ UK gold dealers
- ✓Daily market data analysis and price tracking
Important Information
This content is for informational and educational purposes only and does not constitute financial advice, a personal recommendation, or an endorsement of any product or service. The value of gold and other investments can fall as well as rise, and you may get back less than you invest. Past performance is not a reliable indicator of future results.
London Gold Exchange is not authorised or regulated by the Financial Conduct Authority (FCA) and does not provide regulated investment advice. Before making any investment decisions, consider seeking advice from an independent financial adviser who is authorised by the FCA.
Tax treatment depends on individual circumstances and may be subject to change. The tax information provided is based on current HMRC guidance and could change in the future. Always verify tax information with HMRC or a qualified tax professional.