X

VAT

 

Understanding VAT & the VAT Margin Scheme

Cheshire Antiques Consultant LTD | VAT Registration Number: GB 466 1287 75

At Cheshire Antiques Consultant LTD we are a fully VAT-registered UK business, committed to offering complete transparency in all our transactions, particularly concerning how Value Added Tax (VAT) is applied to the fine art, antiques, and collectibles we curate.

Our VAT Practice: Margin & Standard Schemes

We operate under two VAT schemes, depending on the nature of the item sold:

  • VAT Margin Scheme (16.67%)
    This scheme applies to all qualifying works of art, antiques, second-hand goods, and collectibles. Under this scheme, VAT is only calculated on the profit margin—that is, the difference between the item’s purchase price and its resale price—not on the full selling price.
    Invoices issued under this scheme will display the word "Margin" and will not itemise a VAT amount.

  • Standard VAT Scheme (20%)
    For items that do not qualify under the margin scheme—such as precious metals, investment gold, or certain new goods—we apply the standard VAT rate of 20%. If you are uncertain whether your chosen item qualifies under the margin scheme, please contact us prior to purchase for clarification.

What is the VAT Margin Scheme?

The VAT Margin Scheme is a special taxation method designed for specific types of goods. Rather than charging VAT on the total sale price, the scheme allows VAT to be charged only on the profit margin.

This scheme is particularly relevant to:

  • Second-hand goods
    Items that have been previously owned and are still usable or can be restored for continued use.

  • Works of art
    This typically includes paintings, drawings, sculptures, engravings, and similar original artistic creations. (Note: Some technical or decorative items may be excluded.)

  • Antiques
    Defined as items over 100 years old, such as period furniture, clocks, and decorative pieces.

  • Collectors’ items
    Including rare stamps, coins, currency, and objects of historical, scientific, or archaeological interest.

VAT under the margin scheme is charged at 16.67% (or one-sixth) of the margin between the purchase and resale price.

Items Ineligible for the Margin Scheme

Not all goods qualify for margin treatment. The following are excluded:

  • Items for which VAT was already charged at the time of purchase

  • Precious metals

  • Investment gold

  • Precious stones

  • Goods acquired from a VAT-registered business with standard VAT already applied

For these items, standard 20% VAT is applicable and will be clearly indicated on the invoice.

Why This Matters to You

Whether you are an investor, collector, or interior designer, understanding VAT application ensures confidence in every acquisition. Our VAT handling complies strictly with HMRC regulations, providing you with clarity, assurance, and compliance.

If you have any questions regarding VAT or would like to determine whether an item falls under the VAT Margin or Standard scheme, please do not hesitate to contact us directly.

Cheshire Antiques Consultant LTD
Elegant Objects. Transparent Practices.