How silver is priced in the UK
In the UK, silver is quoted per troy ounce, per gram and per kilo in pounds sterling. The global benchmark is the LBMA Silver Price, set once a day in an auction starting at 12:00 noon London time and run by ICE Benchmark Administration. The figures on this page are the international spot price converted to sterling. They do not include VAT, dealer premiums or the buy-back spread.
VAT on silver in the UK
Silver is not covered by the investment gold VAT exemption, so new silver bars and coins, including Royal Mint Britannias, carry VAT at the standard 20% rate. Pre-owned silver can be sold under the second-hand margin scheme, where the dealer pays VAT only on its profit margin, which makes second-hand coins noticeably cheaper. Some dealers also sell silver held in bonded storage outside the UK without VAT, but VAT becomes payable if you later take physical delivery. VAT-registered businesses may be able to reclaim VAT on silver they buy.
Capital Gains Tax: Britannias vs bars
For UK individuals, sterling legal-tender coins are exempt from Capital Gains Tax, which includes silver Britannias (face value £2). Silver bars and foreign coins such as the Maple Leaf, Vienna Philharmonic and Krugerrand are chargeable assets. Gains above the annual exempt amount of £3,000 are taxed at 18% for basic-rate taxpayers and 24% for higher and additional-rate taxpayers. Because Britannias carry 20% VAT when new but no CGT, many investors weigh the VAT cost against the CGT saving. Always check your own position with an accountant or HMRC guidance.
Hallmarking and silver standards
Under the Hallmarking Act 1973, silver articles must be hallmarked by one of the four UK Assay Offices (London, Birmingham, Sheffield and Edinburgh) before they can be described as silver in trade. The legal silver standards are 999, 958 (Britannia silver) and 925 (sterling), plus 800. Items under 7.78 g are exempt from compulsory hallmarking. Bullion, raw material, and coins that are or ever were current coin of the UK or another territory are also exempt, which is why silver bars and Britannias carry no hallmark.
Old British silver coins
British silver coins were struck in sterling silver (92.5%) until 1919. From 1920 the silver content was cut to 50%, and from 1947 the coins were made of cupronickel with no silver. A pre-1920 half crown (14.14 g) therefore holds about 13.08 g of pure silver, while a 1920–1946 half crown holds about 7.07 g. Dealers usually ask you to separate the two groups when selling for scrap. Silver Britannias were 958 fine from 1997 to 2012 and have been 999 fine since 2013, each containing one troy ounce of pure silver.
Tax and duty information last reviewed October 2026. Rules change — confirm with your dealer or tax authority before a large purchase.