Wednesday, February 15, 2012

Are the Channel Islands still a Tax Free haven

Tax Free Gold

The Channel Islands are a tax haven with a unique relationship with the United Kingdom and Europe that dates back to the Norman Conquest.

The Islands are self-governing but are linked to the Crown and although they are not technically part of the EU, they are part of the European customs territory.

This means that although they trade freely with the UK and the rest of Europe they do not charge VAT.

Despite some tax havens being blacklisted by the European parliament urges tighter controls on tax havens, the investors situated in Jersey and Guernsey need not lose any sleep.

The Channel Islands already adhere to strict controls over money laundering and are signed up to the European savings directive aimed at curbing tax evasion in the EU.

The three largest Channel Islands of Alderney, Guernsey and Jersey all issue Proof gold coins, especially struck for collectors and to mark special occasions such as Royal weddings and anniversaries.

These coins are not meant for circulation and proof is not a grade of gold but a designation for coins that have been struck.

Proof gold coins are produced in limited amounts, so have a collectible value as well as possessing a fine gold content – some coins as high as .999 gold. Channel Island Proof coins are also available in base metal and fine silver.

The precious metal Proof coins rise in value over time and are a good source of funds if you need to quickly raise money. Buying proof gold or silver coins is a good way to build up a valuable investment.

Another way to invest in Channel Island gold is to buy gold bullion. You can purchase Fine gold bars from numerous companies and these come in sizes between 100g to 1 kilo. At the time of writing the price of a 100g bar costs £3,576

and a kilo weight £35,328.

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Although it is not obligatory and you are free to take your gold away after purchase you can choose to store your gold in the company’s secure storage facility for a nominal fee.

Many people prefer this option because of the obvious security issues but you can still see your gold. Some gold companies offer the option whereby you can visit your investment gold bar and look at it on line.

With the price of gold rising and looking a safer bet than many other investment options, this is proving to be growing in popularity.