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Volume 978: debated on Monday 11 February 1980

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asked the Chancellor of the Exchequer if he will list the different considerations which cause Krugerrands to be liable to capital gains tax but to be free of value added tax.

[pursuant to his reply, 8 February 1980]: Krugerrands have from the outset been exempt from value added tax under item 1 of group 5 of schedule 5 to the Finance Act 1972 because the supply of all gold coins which are legal tender in their place of issue is regarded as "dealing in money". Gains on disposals of Krugerrands, and of other foreign currency—except that acquired for personal expenditure outside the United Kingdom—have always been liable to capital gains tax unless the person selling them is held to be trading when instead the liability will be to income tax—or corporation tax.