For self-employed workers and business owners, making sure you invest in savings in later life is something that needs to be done in an organized fashion. Unlike regular workers who have employer-contributing schemes in place, these people have to be creative in accumulating their pension pot. One area not always considered is investing in jewellery—be this an indulgence or an appreciating commodity. And better still is that in certain situations, spending money on jewellery has tax benefits to go alongside this.
Precious metals and gems have always been an investor-friendly reserve value. Jewellery is an accessible physical commodity that can be passed down or resell upon need. Platinum, gold, and better gems appreciates over time, making jewellery an investor portfolio value-added commodity.
Long-Term Appreciation: Quality jewellery in certain products made with pure-gold content or platinum or exotic gems appreciates over time and is an appreciating long-term investment. Inflation Proof: Precious metals have been used in the past to ride inflation by rising or appreciating in value while money prices change. Liquidity: Unlike in most investments such as property, jewellery can be readily liquidated in case money is needed in retirements or in enterprise.
Business owners and freelancers can claim jewellery purchases in a tax efficient way only if purchases fall in accordance with particular conditions:
Corporate Gifts & Business Expenses: If part of your enterprise is to purchase jewellery to give to customers or to workers (for giving to customers or to act as an advert/promotional material) this can be an offsetting enterprise cost. HMRC is tough in rules in this area, yet generally has to remain below an amount (for example, £50 each in trivial benefits). Marketing & Branding: If jewellery is included in work attire—such as an expensive watch or signature jewelry representing your brand—it can be included in your business expenses. This is most true in careers where presentation is part of who does things this way—such as luxury retail or premium-shelf consulting. VAT Reclamation: If jewellery is to be used in business purposes and in respect to VAT your business is registered, in this purchase you can reclaim VAT. This can get complicated where private consumption is carried out, so an accountant is recommended to be consulted. Resale & Capital Gain Implications: If resale is expected while investing in jewellery of an investment grade, gain can be subject to Capital Gains Tax (CGT) unless jewellery items fall in the ‘wasting assets’ bracket (i.e., jewellery with an expiry life term of fewer than 50 years).
Buy Wisely: Be prudent in only purchasing top-grade material and reputable brands or unique items with an active resale market. Keep Documentation: Store receipt documents, authenticity documents, and value statements to resell or claim taxation purposes Seek Professional Expertise: Obtain an accountant or finance advisor to validate that you're benefiting from maximum taxation efficacy while in accordance.
Jewellery can double-edged—enjoyed by yourself while economically secure. As consideration by independent professionals and business owners alike is both an awareness both of taxation benefits and taxation detriments in jewelry investing. As an inflation hedge, deductible business expense, or rich addition to pension pot, luxury jewellery is something to keep in consideration to invest in.
