Capital Gains Tax & Gold Bullion

Capital Gains Tax (CGT) is charged on the profit you make when you sell, gift, or otherwise dispose of an asset. It applies to a range of investments, including gold and silver bullion, shares, and property. CGT is calculated on the gain made — not the total sale value — and may be subject to annual tax-free allowances and applicable reliefs.

Are There CGT-Free Gold and Silver Bullion Products?

Yes — certain British bullion coins are exempt from Capital Gains Tax (CGT). Under HMRC rules, British coins that are recognised as legal tender are generally exempt from CGT. This includes coins produced by The Royal Mint that carry a face value.

Examples include: Gold Britannia coins, Silver Britannia coins, and Gold Sovereigns (from 1837 onwards). Because these coins are classed as UK legal currency, any gains made on their disposal are typically exempt from Capital Gains Tax for UK residents.

What About Pre-1837 Sovereigns?

Pre-1837 Sovereigns are not classed as legal tender. However, they may still qualify for CGT exemption under separate "chattels" rules. Under HMRC guidance (TCGA92/S262), coins that are not legal tender are treated as chattels. Gains may be exempt where the disposal proceeds fall within the relevant chattels exemption threshold.

When Is CGT Payable?

Capital Gains Tax generally applies to:

• Gold and silver coins not produced by The Royal Mint
• Coins that do not have UK legal tender status
• All gold and silver bullion bars

How Can Capital Gains Tax on Gold Be Managed?

CGT planning is an important consideration for many bullion investors. One common approach is to structure disposals carefully. Rather than selling an entire holding in one transaction, some investors choose to sell portions of their bullion across different tax years. By spreading disposals over time, it may be possible to utilise the annual CGT allowance more efficiently.

Another straightforward way to reduce CGT exposure is to invest in British legal tender gold coins, such as certain coins produced by The Royal Mint. As these coins are recognised as UK legal currency, they are generally exempt from Capital Gains Tax for UK residents.

Buy CGT-Free British Gold Coins

For UK investors seeking tax efficiency, British legal tender gold coins are often a popular choice. Gold Sovereigns and Half Sovereigns are commonly selected for smaller unit investments, while the 1oz Gold Britannia is widely favoured for larger allocations. As UK legal tender coins produced by The Royal Mint, these coins are generally exempt from Capital Gains Tax (CGT) for UK residents.

UK Capital Gains Tax Allowance 2024/2025

For the 2024/25 tax year, individuals have an annual Capital Gains Tax (CGT) allowance of £3,000. Gains realised within this threshold are not subject to CGT. In certain circumstances, additional reliefs may also apply, depending on your personal situation.

It is important to note that the CGT allowance applies to all capital gains within the same financial year. If you dispose of other taxable assets — such as shares or property — those gains will contribute toward your annual threshold.

Responsibility for Capital Gains Tax

It is the responsibility of the individual investor to declare and pay any Capital Gains Tax (CGT) that may arise from the disposal of bullion. We do not provide tax reporting services or submit CGT declarations on behalf of customers.

We retain records of all transactions for a period of seven years in accordance with regulatory requirements. Transaction details are not shared with HM Revenue & Customs unless we are legally required to do so.