Capital Gains Tax and Gold Bullion

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Capital Gains Tax and Gold Bullion

Capital Gains Tax (CGT) is a tax on the profit…

Date: 20/08/2024

Jordan Workman

Capital Gains Tax (CGT) is a tax on the profit (or “capital gain”) made from the sale of certain types of assets, such as property, stocks, bonds, or precious metals like gold. The tax is calculated on the difference between the purchase price (cost basis) and the selling price of the asset.

In the UK, certain gold coins are exempt from Capital Gains Tax (CGT), making them an attractive option for investors looking to buy physical gold. This exemption means that any profit (or capital gain) made from selling these coins is not subject to CGT, allowing investors to keep more of their returns.

Here’s what you need to know about UK CGT-free gold coins:

1. CGT Free Coins

UK Sovereign Coins: Gold Sovereigns are some of the most popular CGT-free gold coins. They have been minted by the Royal Mint since 1817 and are considered legal tender in the UK.
Britannia Coins: The gold Britannia coin, first introduced in 1987, is another coin that is exempt from CGT. Like the Sovereign, Britannia silver and gold coins are produced by the Royal Mint and are legal tender in the UK.
Tudor Beasts Coins: The Tudor Beasts coins, produced by the Royal Mint, are a stunning series of gold and silver coins that celebrate the heraldic creatures linked to the Tudor dynasty. As legal tender in the UK, these coins are exempt from Capital Gains Tax (CGT), making them a favored choice for both collectors and investors who appreciate their historical significance and tax advantages.
Queen’s Beasts Coins: The Queen’s Beasts coins, also minted by the Royal Mint, honor the ten heraldic statues that stood guard at Queen Elizabeth II’s coronation in 1953. The Queen’s Beasts coins are legal tender in the UK and are therefore exempt from CGT, offering a unique combination of heritage, artistry, and tax efficiency to those who invest in them.

Capital Gains Tax (CGT) applies to all gold and silver coins that were not minted by The Royal Mint and do not have legal tender status in the UK. Additionally, all gold and silver bullion bars are subject to CGT, making this an important factor for large-scale investors to consider.

2. Legal Tender Status

The key reason why these coins are CGT-free is that they are classified as legal tender in the UK. As legal tender, any gains realised from selling these coins are not subject to CGT. This differs from other forms of gold investment, such as gold bars or non-UK coins, which may be subject to CGT. Any coin produced by the Royal Mint has a face value qualifies as a CGT-free gold or silver investment. This means you can make unlimited tax-free profits on investments of any size and value with all of these British legal tender bullion coins.

3. Investment Appeal

Tax Efficiency: The CGT exemption makes Sovereign and Britannia coins particularly appealing to UK investors. You can buy and sell these coins without worrying about the tax implications on any profits you make.
Liquidity: Both Sovereign and Britannia coins are widely recognised and accepted in the gold market, which makes them easy to buy and sell.
Historical and Cultural Value: In addition to their investment appeal, these coins also have historical and cultural significance, which can add to their desirability among collectors and investors.

How to Avoid Capital Gains Tax on Gold?

No one likes to pay more tax than necessary, and if there are legal ways to minimise or reduce it, it’s the investor’s responsibility to take advantage of them.

A common strategy is to spread the sale of your gold across multiple financial years, which can help reduce tax liability. For example, if you purchased £30,000 worth of gold coins in 2015 and their value increased to £45,000 by 2017, instead of selling all the coins at once and realising the full £15,000 profit, you could sell a portion of the coins in 2017. By selling enough to generate a £10,000 gain, you could stay within the CGT-free allowance, leaving the remaining coins to be sold in a different financial year, thus potentially avoiding or reducing the tax due.

Keep in mind that gold prices can fluctuate, so the value of the remaining coins could increase or decrease in the subsequent year.

Alternatively, a straightforward way to avoid CGT altogether is to invest in British coins such as Sovereigns or Britannias. These coins are exempt from CGT, allowing you to realise profits without any tax concerns.

Always ensure you consult with your investment advisor. At Bullion House, we provide transparent advice to our clients.

FAQ's

Is Gold Bullion Subject to Capital Gains Tax (CGT) in the UK?

Yes. Gold bullion bars are subject to CGT. However, every gold coins produced by the Royal Mint is CGT-free. Therefore, we recommend to buy gold coins.

What is the CGT Exemption Threshold in the UK?

For the tax year 2023/2024, the CGT annual exemption is £6,000. This means you can make gains of up to £6,000 in a tax year without paying any CGT. If your total gains exceed this threshold, you will need to report and potentially pay CGT on the excess amount.

Do I pay Capital Gains Tax on gold?

CGT is chargeable on gold bullion, however gold and silver coins that are legal tender (produced by Royal Mint) such as Britannia Coins and gold sovereign coins are CGT exempt.

Do I have to declare gold to HMRC?

Capital Gains Tax (CGT) is chargeable on metal coins that are not produced by the Royal Mint as they are not considered to be UK legal tender.

Which Coins are CGT Exempt?

Some of the most well-known coins that are CGT-free include Gold Britannias, Gold Sovereigns, Tudor Beasts, Queen’s Beasts, Half Britannias, and Quarter Britannias, among others.

At Bullion House we recommend everybody to dedicate 5-15% of your liquid assets to physical gold, wether in bars, coins or graded coins. This applies to everyone – from those with modest savings to high-net-worth individuals – because owning physical gold is a reliable way to protect your financial future and that of your loved ones.

To learn more about the advantages of owning physical gold bullion and coin, be sure to read our article featured in the “The Times”

“Own Gold” Says Billionaire Investor

10/11/2025

The Best Gold Investors Do These 5 Things

15/10/2025

Gold hits £3000 for the first time

08/10/2025

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