All you need to know about investment taxes on stocks, crypto, and precious metals when building your investment portfolio and savings.

A Comprehensive Guide to Investment Taxes: What Savers and Investors Need To Know

GA News

The Spotlight

Newsdesk

Studies & research

While taxes may not be the most riveting topic at first glance, they are an essential and inevitable part of our financial lives. 

After all, they serve as the bedrock on which our society thrives.🌇

Investing contributes to the economy’s growth, and taxes on investment returns fund essential services like infrastructure, schools, and healthcare, benefiting society as a whole. 

Investment taxes can be seen as a way of giving back and investing in a brighter future for everyone.🌠

Furthermore, understanding investment taxes can help you optimize your investment strategy, minimize tax liability, and ultimately increase your after-tax returns. You can make well-informed decisions about your investment portfolio if you understand different investment tax categories, such as

, stocks, crypto assets, and exchange-traded funds.

But remember, investment taxes can be complex and vary depending on several factors. 

Different types of income, such as capital gains, dividends, and interest, may be subject to specific tax rules and rates.

While we strive to provide you with the most accurate and reliable information, tax laws are like the tides 🌊 — ever-changing. So, stay informed, stay proactive, and consult with a qualified tax professional for personalized advice tailored to your unique circumstances. 

But now, get ready to unlock the secrets of investment taxes and embark on a journey toward financial empowerment. Your financial future awaits!💰

A man holding a magnifying glass, with a money tree, US dollar coins, charts and a calculator

Stocks, also known as equities, represent ownership shares in a company. When you invest in stocks, you become a shareholder and have the potential to benefit from the company’s growth and profitability. 

Understanding the taxes due on stock investments is crucial for maximizing returns and managing your portfolio effectively.

One key tax aspect related to stocks is the taxation of capital gains.

 Capital gains are the profits made from selling stocks at a higher price than what you initially paid. The tax treatment of capital gains depends on the holding period of the stocks.

Short-term capital gains occur when you hold stocks for one year or less before selling them.

 These gains are generally subject to ordinary income tax rates, which are typically higher than long-term capital gains tax rates. In the United States, short-term capital gains are taxed at your regular income tax rate.

Long-term capital gains arise when you hold stocks for more than twelve months before selling them. 

These gains benefit from preferential tax rates, which are typically lower than ordinary income tax rates. In the United States, long-term capital gains tax rates are determined based on your income level.

For example, let’s say you purchased 100 shares of ABC Corporation at $50 per share and sold them after three years at $80 per share. The capital gain per share would be $30, resulting in a 

. If you fall into the 15% long-term capital gains tax bracket, you would 

, here's the deal: you'll only need to pay it if your total gains go beyond the tax-free allowance, which is currently set at £12,000. The rates you should keep in mind are 28% for residential property and carried interest, and 20% for other assets. Oh, and don't forget to report your capital gains when filling out your UK Tax Return.

In addition to capital gains taxes, other relevant taxes may apply to stock investments:

. Dividends are distributions of a company’s earnings to its shareholders. In the US, dividend income is generally taxable, but the tax treatment varies depending on whether the dividends are qualified or non-qualified. Qualified dividends are subject to the same preferential tax rates as long-term capital gains, while non-qualified dividends are taxed at ordinary income tax rates. In the UK, dividends are subject to taxation through a system known as the Dividend Tax.

. This is only applicable in the US. The wash sale rule is an important consideration for 

 for stocks. It states that if you sell a stock at a loss and repurchase the same or a substantially identical stock within 30 days, the loss may be disallowed for tax purposes. This rule aims to prevent investors from using artificial losses to offset taxable gains.

. In the US, some states impose their own taxes on investment income, including stock investments — in addition to the federal taxes. State tax rates and regulations can vary, so it’s essential to understand your state’s specific requirements.

Takes on stocks may seem complex at first, but they can be understood by following a few steps and doing thorough research. Next, let’s explore the world of crypto asset taxes and see what they involve. 

A blue wallet with a pie chart and bitcoins on a pink background

Crypto assets, also known as cryptocurrencies, are digital assets that use cryptography to secure and verify transactions. They differ from traditional investments like stocks and bonds in that they are not backed by a physical asset or a government entity. 

Due to their decentralized nature and lack of regulation, 

In most countries, including the UK and the US, crypto assets are treated as property for tax purposes. 

This means that buying, selling, and holding crypto assets can trigger taxable events, and any profits or losses must be reported on tax returns

. When you purchase crypto assets, you will need to keep track of what you paid for those asset + any additional fees.

. Selling crypto assets will need to be reported as capital gains or losses when filing your taxes. If you sell your crypto assets for more than your cost basis, you will realize a capital gain, which is taxable. If you sell for less than your cost basis, you will realize a capital loss, which may be deductible.

. Some countries may impose annual taxes if you hold crypto assets for more than a year without selling, and any increase in the value of your holdings may be subject to taxation. 

In the UK, crypto asset taxation is governed by Her Majesty’s Revenue and Customs (HMRC). According to HMRC, crypto assets are subject to capital gains tax when disposed of, exchanged, or used as payment. The tax rate depends on the taxpayer’s income and the gains realized.

has issued guidance on crypto asset taxation. According to the IRS, crypto assets are treated as property for tax purposes, and the same rules apply to traditional investments. If you hold crypto assets for one year or less before selling, any gains are subject to short-term capital gains tax rates. 

If you hold for over one year, any gains are subject to long-term capital gains tax rates

It’s essential to note that crypto asset taxation is a rapidly evolving area, and regulations and laws may change.

 It’s crucial to keep accurate records of all crypto asset transactions and consult with a tax professional to ensure compliance with applicable tax laws.

It’s essential to note that crypto asset taxation is a rapidly evolving area, and regulations and laws may change. It’s crucial to keep accurate records of all crypto asset transactions and consult with a tax professional to ensure compliance with applicable tax laws.  Taxes on Precious Metals🪙

Precious metals, such as gold, silver, platinum, and palladium, have been valued throughout history for their rarity and intrinsic properties. Investing in precious metals can provide a diversification strategy and a hedge against economic uncertainties. Take a look at 

 to see anticipated trends of precious metals prices in 2023 and examine the key factors that will likely influence their movements. 

But before you make up your mind to invest, it’s important to understand the tax implications associated with these investments:

Capital gains taxes generally apply when you sell or exchange precious metals at a profit. The tax treatment of precious metals can vary depending on the country and the specific metal involved.

In the United States, precious metals are classified as collectibles for tax purposes. As a result, gains from 

 are subject to a special capital gains tax rate. The maximum long-term capital gains tax rate for collectibles, including certain precious metals, is 28%.

 for $1,500 and later sold it for $2,000, you would have a 

0. If you fall into the 28% tax bracket, you would 

In the United Kingdom, gains from selling most types of precious metals are exempt from capital gains tax. This exemption applies to gold coins, bars, and other forms of investment-grade gold. However, it’s important to note that tax exemptions may not apply to certain types of metals or specific circumstances. It is advisable to consult the HM Revenue and Customs (HMRC) or a tax professional for accurate and up-to-date information.

Apart from capital gains taxes, there may be other taxes associated with precious metal investments:

. VAT is a consumption tax imposed in many countries. In some cases, purchasing precious metals may be subject to VAT, depending on the jurisdiction and the specific metal. While investment gold is VAT-free in most countries, VAT rates on silver vary from 8.1% in Switzerland to as high as 20% in the UK. Learn more about 

. In the United States, the sale of precious metals may be subject to sales tax. The rates and exemptions vary depending on the state, ranging from 2.9% to 7.25% on average.

. Depending on the country, precious metals may be subject to wealth or estate taxes, such as in France, Norway, Spain, and Switzerland. These taxes generally apply to the overall value of an individual’s assets, including precious metals, if they exceed certain thresholds.

Investing in precious metals can provide stability and a tangible asset to diversify your portfolio. However, it’s important to research and understand the specific tax regulations in your country or jurisdiction to ensure compliance and accurate reporting.

Taxes on Exchange-Traded Funds (ETFs)💱

A man and a woman sitting on a stack of US dollar banknotes with US dollar coins and ETF letters on the background

Exchange-Traded Funds (ETFs) have gained popularity as investment vehicles that 

ETFs are investment funds that trade on stock exchanges and aim to replicate the performance of a specific index, sector, commodity, or asset class. 

Understanding the tax implications associated with ETF investments is crucial for maximizing returns and managing tax liabilities.

Capital gains taxes apply to ETFs when you sell or exchange your shares at a profit. The tax treatment of capital gains from ETFs is generally similar to other types of investments, but there are a few considerations specific to ETFs:

. One unique aspect of ETFs is the creation and redemption process, which involves authorized participants (APs) creating or redeeming shares directly with the ETF issuer. This process can impact the timing and realization of capital gains or losses within the ETF. However, as an individual investor, your tax implications are primarily related to 

 ETFs often utilize in-kind transactions when shares are created or redeemed. This means that instead of cash, the APs contribute a basket of securities to the ETF issuer in exchange for ETF shares (creation) or vice versa (redemption). These in-kind transactions can have tax advantages and help reduce capital gains distributions within the ETF.

 ETFs may distribute capital gains to shareholders when the fund sells underlying securities at a profit. These distributions are taxable to shareholders and are typically reported as capital gains on their tax returns. The tax treatment of these distributions depends on whether they are classified as short-term or long-term gains based on the holding period of the underlying securities.

The specific tax treatment of ETFs can vary depending on the country and its tax regulations.

, gains from the sale of ETFs are generally subject to capital gains tax. The specific tax rates depend on the individual’s income tax bracket and whether the gains are classified as short or long-term. The calculation of capital gains tax for ETFs would follow the same principles as other investments subject to capital gains tax in the UK.

, capital gains taxes on ETFs are generally calculated based on the difference between the sale price and the cost basis of the shares. This calculation determines the capital gain or loss. The holding period determines whether the gains are subject to short-term or long-term capital gains tax rates. Individual investors are responsible for reporting their capital gains or losses on their tax returns.

Apart from capital gains taxes, other taxes that may be relevant to ETF investments include:

. ETFs may distribute dividends to shareholders from the income generated by the underlying securities. These dividends are generally subject to taxation, and the tax treatment depends on whether they are qualified or non-qualified.

. For international ETFs, withholding taxes may be imposed on dividends or interest income earned from foreign securities held by the ETF. The specific rates and regulations vary depending on the country of origin and any applicable tax treaties.

Understanding investment taxes is crucial for maximizing returns and 

 effectively. Whether you’re investing in stocks, crypto assets, precious metals, or ETFs, knowing the tax implications is key.💡

Taxes are an integral part of our financial lives,

 supporting essential services and benefiting society as a whole.

 can help optimize your investment strategy and increase after-tax returns.

, such as capital gains, dividends, and interest, may be subject to specific tax rules and rates.

Investment tax laws are subject to change

, so staying informed and consulting with a qualified tax professional is essential.

Capital gains tax rates differ based on the holding period of stocks, with short-term gains taxed at ordinary income tax rates and long-term gains benefiting from preferential tax rates.

Buying, selling, and holding crypto assets can trigger taxable events, and the tax treatment varies by country.

 Capital gains taxes on precious metals can vary by country, with different rates and exemptions. Consider VAT, sales tax, and potential wealth taxes associated with precious metal investments.

Gold offers several powerful advantages as a store of value. Discover why more and more investors are turning to this precious metal.

What are the advantages of gold compared to other investments?

A look at the strong changes in demand in the gold sector y-o-y.

A Shift in Gold Demand Trends

Good thing central banks can't print gold. 😉

21.9% Annual Inflation... and Counting

Despite slowing down, the frenzy around silver has kept prices up, and demand for physical bars and coins strong, while doubts over the state of the silver stocks emerge. Is Silver Setting the Stage for a Breakout?

Is Silver Setting the Stage for a Breakout?

We are thrilled to announce that our CEO Alessandro Soldati was invited for an open and lively discussion on a popular YouTube channel Frugalisme et Liberte Financiere.

How to Buy Physical Gold Online in 2022?

17/02/22: The European Central Bank could raise interest rates in 2022, the gold price goes up as tensions over Ukraine resurface, Switzerland lifts most Covid-19 restrictions. And more.

Weekly Digest: ECB Rate Hikes, Gold Up on Ukraine Tensions

Choosing between gold and silver: A comparison to help you decide which metal might be right for you.

Should You Buy Gold or Silver?

Reddit and the Wall Street Silver crowd are planning a new #Silversqueeze. With more coordination and hindsight, will they succeed in rising the silver price? 

#Silversqueeze 2.0?                         

The Federal Reserve’s inflation goals are getting risky and could cause the rate to overheat dangerously if they were to push it too hard.

The Fed’s Dangerous Game

Meet GOLD AVENUE CEO, Alessandro Soldati, in our first Q&A video session!

Q&A with our CEO - Alessandro Soldati

The Fed desperately wants higher inflation that would exceed its 2% target. Will the ECB follow the lead? It looks like it. 

Does the European Central Bank Want High Inflation?

24/02/22: Russia has launched a full-scale invasion of Ukraine, the S&P is in a correction for the first time since the 2020 Wall Street plunge, gold hits a 20-month high. And more. 

Weekly digest: Ukraine Crisis, Markets Shaken, Gold’s Up

Russia’s decision to remove the US dollar assets from its sovereign wealth fund and partially replace them by gold boosts the yellow metal’s importance as a strategic asset.

Russia's New Move on Gold

After yet another central bank starts considering negative interest rates, we’re taking a look at how unlimited debt can impact physical gold investment.

Is Unlimited Debt Good for Gold?

World markets have taken a hit as the Russian invasion of Ukraine spooked investors around the globe. Here’s what you can do right now to protect your investment portfolio and gold savings.

Ukraine-Russia Conflict: What Impact on Your Savings?

You probably noticed certain industries and communities aren’t bouncing back as quickly as others during times of recession or economic crisis. That’s what the K-shaped recovery is all about.

What the K-Shaped Recovery Means for Gold

03/03/22: Markets are on a wild rollercoaster ride, Eurozone inflation at a record high, Russia intensifies its invasion of Ukraine, gold proves itself as a safe haven. And more.

Weekly digest: inflation rising, Russia sanctions, gold gains

You want to start investing but you don't know where to start? Here is a beginner’s guide to investing.

How to Start Investing in 2023? Here's What You Need to Know

The #silversqueeze movement took the investment world by storm and has the potential of shaking up the silver market. Will it be here for the long term?

#silversqueeze

Here’s a rare sneak peek into one of the world’s biggest gold refineries. 

How Do You Make Gold Bars?

10/03/22: Gold and palladium hit a record high, oil records its worst day since November, Biden signs an executive order on crypto. And more. 

Weekly digest: Metals on the Rise, Oil Drops, Crypto Order

In 2021, central banks continued buying gold, with emerging countries stepping up as key net buyers. Do you wonder why? Here’s what you need to know.

Central Bank Gold Buying Explained

With inflation soaring in Europe and the U.S, learn how to navigate higher consumer prices from this great personal finance video from Sorelle Amore.

5 Ways to Protect Your Wealth From Inflation

17/03/22: The Fed has raised interest rates for the 1st time since 2018, one of Brazil’s biggest funds goes for gold, E.U.'s rethinking gas supplies. And more.

Weekly Digest: Fed’s 1st Rate Hike, Gold in Demand

After Russia’s invasion of Ukraine, investors rushed to gold, the world’s oldest safe-haven asset, pushing its price to a new record. Why did this happen? Here’s what you need to know. 

Investor Gold Demand is Booming Right Now: Here's Why 

On August 15, 1971, U.S. President Richard Nixon possibly made the biggest monetary error in history. A video from Libre & Riche will tell you why.

All You Need to Know About the World’s Greatest Monetary Catastrophe

24/07/22: The U.K. hit by the worst cost-of-living crisis in decades, Powell finally admits inflation is “much too high”, European stocks drop. And more.

Weekly Digest: Cost of Living Crisis, Inflation Problem

The U.S. Federal Reserve has announced its first interest rate hike since 2018. What could this mean for the gold price? Here’s what you need to know. 

How Interest Rate Hikes Affect the Gold Price

31/03/22: European inflation soars to new heights, Russia resumes gold purchases, no breakthrough seen in Ukraine war despite renewed peace talks. And more. 

Weekly Digest: EU Inflation Runs Hot, Ukraine Peace Talks

It seems that the ongoing US presidential election has not changed the situation in the gold market so far as the macro backdrop remains quite favorable to the yellow metal.

Trump + Biden = Gold?

Do you want to buy gold bars but are not sure where to start? Here’s what you need to know to build your precious metals portfolio in a smart way.

How Do You Buy Physical Gold Bars? 

The backdrop of global inflation in the U.S. and Europe was already worrying. Now, Russia’s invasion of Ukraine is making the situation even worse, including sending gas prices soaring to record levels. Here’s what you need to know.

Here’s How Rising Gas Prices and Inflation Fuel Each Other

07/04/22: More and more people are worried about rising consumer prices, experts think the U.S. recession is inevitable, cryptocurrencies are facing some privacy issues. And more.

Weekly Digest: Inflation Worries, U.S. Recession

It looks like stagflation could be here soon. Here’s what you need to know to understand the economic phenomenon that stifled growth through the 1970s.

What Is Stagflation and Why Should We Worry About It?

14/4/22: U.S. inflation hit 8.5% in March, the highest since 1981, EU ban on Russian gas could spark a sharp recession in Germany, Ukraine peace talks “at a dead end.” And more.

Weekly Digest: U.S. Inflation at 40-Year High, German Recession Risk 

Leading world banks say we should get ready for a new recession shock. What does it mean exactly, and what investments might be the best place to stash your hard-earned money?

Recession Risk is Rising, Economists Say. Here's What It Means for Investors

21/04/2022: The IMF cuts its global economic growth forecast, UN says the war in Ukraine could create a global food crisis “beyond anything seen since World War II,” Macron and Le Pen fight for the presidency. And more.

Weekly Digest: IMF Cuts Growth Forecast, Hunger Threat

If you are a parent, you probably want to find the best way to set your kids up for financial success. Here’s how your gold savings will help you start building their lifelong wealth.

3 Ways Gold Savings Can Benefit Your Children and Family

Easy is always right. Especially when it comes to buying precious metals. If you still don’t know what’s the easiest way to buy gold, you’re in the right place.

The Easiest Way to Buy Gold and Precious Metals

28/4/22: Russia halts gas supplies to Poland and Bulgaria, the Fed is set for more aggressive rate hikes to tame inflation, Musk seals the deal to buy Twitter. And more.

Weekly Digest: Russia’s Gas Cutoff, Musk’s Twitter Deal

If your children are the lucky ones to get a hoard of gold as an inheritance, there are 4 things you should do before passing it on to them.

4 Things to Remember When Buying Gold for Your Children

04/05/22: The Fed is set to fight inflation with the fastest rate hikes in decades, Fitch trims China’s 2022 growth forecast amid Covid-19 lockdowns, two Argentinian banks will allow crypto trading. And more.

Weekly Digest: Fed Rate Hike, Cuts to China’s Growth Forecast 

Here are the 4 handy tips you can immediately put into practice when buying physical gold for the first time.

How Do You Buy Gold? A Beginner’s Guide

Swissmint made history as they issued their first-ever 50-franc Vreneli gold coin on May 11, 2022, making a very special coin even more popular in Switzerland and beyond.

Swissmint Issues a New Limited-Edition Vreneli Coin

12/05/22: U.S. inflation stays at a 40-year high, defying expectations of a bigger drop, crypto and stocks fall, reacting to the U.S. inflation data. And more.

Weekly Digest: U.S. Inflation, Stocks, Crypto Crash

The end of Bretton Woods seems to be an essential reason behind the widening of the productivity-pay gap that reveals gold's influence as a source of stability.

What is the Productivity–Pay Gap?

A quick overview of the performance of gold versus some of the major commodities for the first half of 2020.

🔥 Gold VS Commodities 🔥

You read in the press that persistently high inflation has finally peaked and should be going down soon. But the latest CPI numbers show it might not be entirely true. Here’s why.

Has Inflation Peaked? Here's What You Need to Know to Understand Inflation

19/05/22: U.S. stocks post the biggest daily drop in almost two years, Sri Lanka default hints at troubles ahead for developing nations, E.U. slashes growth forecast. And more.

Weekly Digest: Dow Tumbles, Food Inflation Getting Worse

Since the start of 2022, the stock market has been on a wild ride, while gold was close to hitting a new record high in March. Which has performed better so far? We guess you already know.🙃

Gold Price Vs. Stock Market: 2022 Edition

While the Fed is taking a dovish stance, investors are fearing a real rise in inflation in the near future.

Is the Fed Moving Too Slow to Counter Inflation?

25/05/2022: U.S. stocks slumped again amid economic data, the global food crisis risks causing a “messy” migration in Europe, Bitcoin could fall to $8,000. And more.

Weekly Digest: Stocks Slump, ‘Messy’ Migration Risk in Europe

Have you been thinking of investing in platinum bars and coins? Here’s what you need to know about one of the world’s rarest precious metals.

Investing in Platinum: A Beginner’s Guide

02/06/22: The Eurozone inflation hits a new record high, JPMorgan Chase CEO warns of the economic hurricane, EU leaders agree to ban most Russian crude imports. And more. 

Weekly Digest: Eurozone Inflation, Economic Hurricane

09/06/22: The OECD has lowered its growth forecast for this year, Eurozone inflation is expected to peak, U.K. economy is facing stagnation. And more.

Weekly Digest: OECD Cuts Growth Forecast, EU Inflation to Peak

Central banks are rushing to raise interest rates to tackle rising consumer prices in Europe. There are a few things we can learn from them about fighting inflation.