Understanding silver bars

Some people like to own a little of their savings as something they can hold.

Silver bars are one way people do that. Knowing how the market works helps you buy with a clear picture of what you are getting.

These notes cover the UK tax rules.

What the bar standards mean

In the London market, large silver bars are traded directly between two parties, without an exchange. The London Bullion Market Association, or LBMA, sets the standard for them, known as Good Delivery. A Good Delivery silver bar weighs about 1,000 troy ounces.

The standard covers weight, purity and the bar's markings and surface. Refiners on the Good Delivery list must meet checks on their history, finances and production. They must refine at least 50 tonnes of silver a year.

The LBMA publishes the list of accredited silver refiners. In October 2026 it named 86. Other bars that accredited refiners make fall outside the Good Delivery lists. You can still look up a bar's maker on the list.

How the silver price is set

The LBMA Silver Price is the market's benchmark price. ICE Benchmark Administration runs it through an electronic auction. Thirteen participants take part directly.

A dealer sets its own price for a bar. Comparing that price with the benchmark on the same day shows you how much more you are paying for the bar itself.

VAT on silver

HMRC's VAT exemption for investment bullion covers gold only. It applies to gold bars and wafers of at least 995 parts in 1,000 purity.

Silver is not included. The standard rate of VAT, which applies to most goods, is 20%. It is worth checking whether a price you are shown includes VAT.

When you come to sell

For Capital Gains Tax, a silver bar counts as a personal possession. HMRC's manual calls this a chattel, meaning property you can touch and move. You may have to pay tax on a gain when you sell a possession for £6,000 or more.

Your gain is usually the difference between what you paid and what you sold it for. You can deduct some costs, such as valuation fees. You can also deduct VAT you paid, unless you could reclaim it.

If you sell for between £6,000 and £15,000, a special calculation can reduce the gain. For the 2026 to 2027 tax year, everyone has a £3,000 tax-free allowance for gains. Above it, gains are taxed at 18% or 24%, depending on your income.

Keeping the receipt from the day you buy makes this simple years later.

Buying with care

The FCA lists gold and precious metals among the products it does not regulate that often feature in investment scams.