(1)(a) In this section-

"intermediary" means a person who intervenes for another person in a supply of investment gold while acting in the name and for the account of that other person;

"investment gold" means-

(i) gold in the form of-

(I) a bar, or

(II) a wafer,

of a weight accepted by a bullion market and of a purity equal to or greater than 995 parts per one thousand parts, and

(ii) gold coins which-

(I) are of a purity equal to or greater than 900 parts per one thousand parts,

(II) are minted after 1800,

(III) are or have been legal tender in their country of origin, and

(IV) are normally sold at a price which does not exceed the open market value of the gold contained in the coins by more than 80 per cent.

(b) For the purposes of the definition of investment gold in paragraph (a), gold coins which are listed in the "C" series of the Official Journal of the European Communities as fulfilling the criteria referred to in that definition in respect of gold coins shall be deemed to fulfil the said criteria for the whole year for which the list is published.

(2) The provisions of this section shall apply to-

(a) [investment gold, including investment gold which is represented by securities]¹ or represented by certificates for allocated or unallocated gold or traded on gold accounts and including, in particular, gold loans and swaps, involving a right of ownership or a claim in respect of investment gold, and

(b) transactions concerning investment gold involving futures and forward contracts leading to a transfer of a right of ownership or a claim in respect of investment gold.

(3) Notwithstanding subsection (1) of section 6, a person who produces investment gold or transforms any gold into investment gold, may, in accordance with conditions set out in regulations, waive such person's right to exemption from tax on a supply of investment gold to another person who is engaged in the supply of goods and services in the course or furtherance of business.

(4) Where a person waives, in accordance with subsection (3), such person's right to exemption from tax in respect of a supply of investment gold, an intermediary who supplies services in respect of that supply of investment gold may, in accordance with conditions set out in regulations, waive that intermediary's right to exemption from tax in respect of those services.

(5)(a) Where a person waives, in accordance with subsection (3), such person's right to exemption from tax in respect of a supply of investment gold, then, for the purposes of this Act, the person to whom the supply of investment gold is made shall, in relation thereto, be [an accountable person]¹ and be liable to pay the tax chargeable on that supply as if [such accountable person]¹ had made that supply of investment gold for consideration in the course or furtherance of business and the person who waived the right to exemption in respect of that supply shall not be liable to pay the said tax.

(b) Where a person is liable for tax in accordance with paragraph (a) in respect of a supply of investment gold, such person shall, notwithstanding the provisions of section 12, be entitled, in computing the amount of tax payable by such person in respect of the taxable period in which that liability to tax arises, to deduct the tax for which such person is liable on that supply, if such person's subsequent supply of that investment gold is exempt from tax.

(6)(a) [An accountable person]¹ may, in computing the amount of tax payable by such person in respect of any taxable period and notwithstanding section 12, deduct-

(i) the tax charged to such person during that period by [other accountable persons]¹ by means of invoices, prepared in the manner prescribed by regulations, in respect of supplies of gold to such person,

(ii) the tax chargeable during that period, being tax for which such person is liable in respect of intra-Community acquisitions of gold, and

(iii) the tax paid by such person, or deferred, as established from the relevant customs documents kept by such person in accordance with section 16(3) in respect of gold imported by such person in that period,

where that gold is subsequently transformed into investment gold and such person's subsequent supply of that investment gold is exempt from tax.

(b) A person may claim, in accordance with regulations, a refund of-

(i) the tax charged to such person on the purchase of gold, other than investment gold, by such person,

(ii) the tax chargeable to such person on the intra-Community acquisition of gold, other than investment gold, by such person, and

(iii) the tax paid or deferred on the importation by such person of gold other than investment gold,

where that gold is subsequently transformed into investment gold and such person's subsequent supply of that investment gold is exempt from tax.

(7)(a) [An accountable person]¹ may, in computing the amount of tax payable by such person in respect of a taxable period and notwithstanding section 12, deduct the tax charged to such person during that period by [other accountable persons]¹ by means of invoices, prepared in the manner prescribed by regulations, in respect of the supply to the first-mentioned person of services consisting of a change of form, weight or purity of gold where that person's subsequent supply of that gold is exempt from tax.

(b) A person may claim, in accordance with regulations, a refund of the tax charged to such person in respect of the supply to such person of services consisting of a change of form, weight or purity of gold where such person's subsequent supply of that gold is exempt from tax.

(8)(a) [An accountable person]¹ who produces investment gold or transforms any gold into investment gold may, in computing the amount of tax payable by such person in respect of a taxable period and notwithstanding section 12, deduct-

(i) the tax charged to such person during that period by [other accountable persons]¹ by means of invoices, prepared in the manner prescribed by regulations, in respect of supplies of goods or services to the first-mentioned person,

(ii) the tax chargeable during that period, being tax for which such person is liable in respect of intra-Community acquisitions of goods, and

(iii) the tax paid by such person, or deferred, as established from the relevant customs documents kept by such person in accordance with section 16(3) in respect of goods imported by such person in that period,

where those goods or services are linked to the production or transformation of that gold, and such person's subsequent supply of that investment gold is exempt from tax.

(b) A person who produces investment gold or transforms any gold into investment gold may claim, in accordance with regulations, a refund of-

(i) the tax charged to such person on the purchase by such person of goods or services,

(ii) the tax chargeable to such person on the intra-Community acquisition of goods by such person, and

(iii) the tax paid or deferred by such person on the importation of goods by such person,

where those goods or services are linked to the production or transformation of that gold, and such person's subsequent supply of that gold is exempt from tax.

(9) Every trader in investment gold shall establish the identity of any person to whom such trader supplies investment gold when the total consideration which such trader is entitled to receive in respect of such supply, or a series of such supplies which are or appear to be linked, amounts to at least 15,000 euros, and such trader shall retain a copy of all documents used to identify the person to whom the investment gold is supplied as if they were records to be kept in accordance with section 16(1A) of this Act.