Tax free jewellery applies to previously owned jewellery sold on the *VAT MARGIN SCHEME. When an item of jewellery is purchased new, VAT at 17.5% is added to the purchase price but when an item of jewellery is pre-owned and re-sold on the margin scheme there is no more VAT to be added or paid by the next owner.

The VAT free element combined with the reduced prices available on pre-owned jewellery is an important factor for our clients. It makes basic common sense to buy jewellery this way; nobody wants to pay more than they have to and we all complain that we pay enough tax already! Buying pre-owned, means that an item of jewellery or a quality wristwatch that may have been unobtainable due to its price is a viable and affordable proposition pre-owned.

*Margin scheme for second-hand goods, works of art, antiques and collectors items (VAT notice 718 January 2002).