A gold investment company claims it has seen a 43 per cent increase in people buying gold coins and bars in the week leading up to the general election.
It claims this has been prompted by concerns the UK’s new Labour government could introduce changes to capital gains tax, inheritance tax and pensions.
Josh Saul, CEO of the Pure Gold Company, said: “We’ve seen a 67 per cent increase in investors selling assets such as art, cars and houses in the last six weeks in order to fund their gold and silver purchases, with many saying they have been motivated by the possibility of a potential increase in CGT.
“Labour has committed to not raising taxes on national insurance, VAT or income tax, but other taxes, including CGT, could be changed.”
Saul said this selling up of assets could protect investors from any tax hikes in the future as gold minted by the Royal Mint are both CGT and VAT free depending on individual circumstances.
He said it is used as a way to transfer wealth between family members.
Saul added: “The decisive Labour victory provides stability for the UK political and economic outlook, and the pound has already strengthened a little in the aftermath, which makes dollar-denominated gold cheaper.
“We’ve had some property developer clients choose to sell property now, avoid an increase in CGT, take advantage of a more favourable gold price and enjoy the tax benefits of holding gold.”
tara.o’connor@ft.com
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