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Selling silver in the UK returns less per ounce than selling gold — dealer spreads are wider, the market is thinner, and the 20% VAT paid on entry is not recoverable on exit. Standard investment silver (Britannias, Maple Leafs, 1oz coins) typically fetches 89–96% of the current silver spot price at reputable UK dealers.
The process is broadly similar to selling gold, but the CGT position differs by coin type and the economics are shaped heavily by whether VAT was paid on entry.
At a glance: what to expect
| Product | Expected return vs spot | CGT on gain | Notes |
|---|---|---|---|
| Silver Britannia (1oz) | 89–96% | Exempt | UK legal tender |
| Canadian Maple Leaf (1oz) | 90–95% | Taxable | Foreign coin |
| Austrian Philharmonic (1oz) | 89–94% | Taxable | Foreign coin |
| American Silver Eagle (1oz) | 88–93% | Taxable | Lower UK market acceptance |
| Silver bars (1kg) | 92–97% | Taxable | Better rates at scale |
| Pre-decimal silver (junk) | 50–75% of silver content | Taxable | Processed at melt value |
| Silver rounds (private mint) | 85–90% | Taxable | May face scrutiny |
Rates indicative based on major UK dealers, March 2026. Check live dealer buyback pages before selling.
Why silver spreads are wider than gold
Silver is not simply a cheaper version of gold to sell. The economics of the dealer market differ in several ways:
Bulk and weight. At roughly 1:80 ratio by price, £10,000 of silver represents approximately 370oz — over 10kg of physical metal. Storage, handling, transport, and assay costs per pound of value are significantly higher for silver than for gold.
VAT asymmetry. You paid 20% VAT when you bought physical silver. When a dealer buys your silver, they do not pay you VAT — they pay the market price for the metal. That 20% paid on entry is gone. A Silver Britannia bought at £32 (including 20% VAT on £26.67 metal value) needs silver to rise significantly before the sale price covers your original cost.
Thinner buyer market. There are fewer active buyers for silver than for gold at any given moment. This gives dealers more pricing power and results in wider bid-ask spreads.
Coin type matters. For silver, the difference between 90% and 96% of spot is the difference between a straightforward sale and one where a dealer questions provenance or condition. Stick to recognisable, standard coins from reputable sellers to maximise your rate.
Step 1: check the current silver price
Before contacting dealers, check the live silver spot price. MetalsAlpha’s silver price page shows the current spot in GBP.
Most dealer buyback pages display live prices. A dealer quoting 94% of spot when spot is £27/oz should pay approximately £25.38 per 1oz Silver Britannia.
Step 2: understand your CGT position
Before selling, know whether your silver is CGT-exempt or taxable.
CGT-exempt (no tax, no reporting):
- Silver Britannias (any year)
- Other Royal Mint legal tender silver coins (Queen’s Beasts silver, Tudor Beasts silver, Lunar series silver)
Taxable (CGT applies on gains above £3,000 annual exempt amount):
- Canadian Maple Leaf
- Austrian Silver Philharmonic
- American Silver Eagle
- Any silver bar, regardless of size or refinery
- Any round from a private mint
For taxable silver, calculate your gain before selling: sale proceeds minus original purchase price (including VAT paid) minus any allowable costs. If your total gains across all assets in the tax year are likely to exceed £3,000, consider spreading sales across tax years. See capital gains tax on gold and silver for the full calculation.
Important: The VAT you paid on purchase is part of your base cost for CGT purposes. If you paid £32 for a Maple Leaf (£26.67 + 20% VAT), your base cost is £32, not £26.67. This reduces your taxable gain on sale.
Step 3: get two or three quotes
The spread between dealers on silver is wider than on gold — comparing quotes matters more. Main UK dealers with active silver buyback programmes:
- BullionByPost — competitive prices, fast postal service, live online prices
- Atkinsons Bullion — strong on Silver Britannias and Royal Mint issues
- Chards — established dealer, good for in-person sales in Lancaster
- Royal Mint — reliable for Royal Mint coins; buyback rates sometimes slightly below specialist dealers
- SilverTrader — specialist silver dealer, worth checking for larger volumes
- Hatton Garden Metals — London walk-in option
Comparing two dealers before committing takes five minutes. On a 100oz position at £27/oz, a 1% difference in buyback rate is £27. On a 500oz position, it is £135.
Check best UK silver dealers for current rankings and reviews.
Step 4: postal or in-person?
Postal selling is the standard for most retail transactions:
- Contact dealer and confirm their current buyback price and process
- Pack coins securely: each coin individually wrapped, inside a padded envelope or rigid box
- Send by Royal Mail Special Delivery, insured for the full market value
- Do not indicate precious metals on the outside of the package
- Payment typically within 24–48 hours of the dealer receiving the package
In-person selling suits larger volumes or anyone uncomfortable with postal. Dealers in London (Hatton Garden), Birmingham, and Manchester will assess and pay on the day.
Specialist auctions are worth considering for pre-decimal silver (florin, halfcrown, shilling collections) where silver content is low but numismatic value may be significant. See junk silver and pre-decimal coins for more on this category.
The VAT question at point of sale
When you sell silver to a UK dealer, you do not charge them VAT, and they do not pay you VAT on top of the silver price. The dealer buys the metal at the market price and handles their own VAT accounting.
The 20% VAT you paid on entry is not returned to you at any point. It is the single largest cost of holding physical silver in the UK — paid upfront, never recovered.
This is the main reason why, for larger silver positions, bonded vault storage is more economical than UK physical holding: the VAT is never crystallised if the silver is sold back through the platform.
How people usually decide when to sell
Physical silver holders who bought for long-term value storage tend to sell when:
- The gold-silver ratio reaches historically high levels (suggesting silver is relatively expensive vs gold)
- They want to rotate into CGT-free gold to optimise their tax position
- They need liquidity for another purpose
Tactically minded investors sometimes use the annual CGT exempt amount to crystallise gains on taxable silver holdings each year, staying within the £3,000 threshold and resetting their base cost. This is standard tax planning but requires discipline to execute consistently.
Tax and regulation
CGT: Silver Britannias and other Royal Mint legal tender silver coins are CGT-exempt. All foreign silver coins, bars, and rounds are taxable on gains above the £3,000 annual exempt amount.
VAT at point of sale: No VAT is charged by the seller on the sale of silver to a dealer. The buyer (dealer) accounts for VAT on their own subsequent sales.
AML: Dealers are required to verify identity under the Money Laundering Regulations 2017 for sales above certain thresholds. Expect photo ID and proof of address checks for larger transactions.
This guide contains factual information only and does not constitute financial or tax advice.
Frequently asked questions
How much will I get for a Silver Britannia? At current silver prices (approximately £27/oz), most UK dealers will pay £24–£26 for a Silver Britannia — approximately 89–96% of spot. The spread on silver is wider than on gold because silver is bulkier, has a thinner dealer market, and attracts no VAT on the buyback.
Do I pay CGT when I sell Silver Britannias? No. Silver Britannias are UK legal tender and are completely exempt from capital gains tax. Any profit on sale is tax-free with no reporting required. This applies regardless of how much profit you make or how many you sell.
Do I pay CGT when I sell a Maple Leaf or other foreign silver coin? Yes. Non-UK silver coins (Canadian Maple Leaf, Austrian Philharmonic, American Eagle) are not UK legal tender and are subject to CGT on gains above the £3,000 annual exempt amount. The rate is 18% (basic rate) or 24% (higher rate).
What is the best way to sell silver coins by post? Wrap coins individually, pack in a well-padded envelope or small box, and send by Royal Mail Special Delivery insured for the full market value. Do not reference precious metals on the packaging. Most dealers offer a free postal pack on request.
Is it better to sell silver to a dealer or at auction? For standard bullion-weight coins (Britannias, Maples, Philharmonics), a UK dealer will typically offer a better net price than a general auction house. Specialist numismatic auctions may be worth considering for rare pre-decimal silver or unusual coins with collector value beyond their silver content.