Gold Bullion Coins & Capital Gains Tax

One major consideration for gold investors is the question of gold and tax. In the UK, profit made from selling certain investments is liable to capital gains tax (CGT) which can reduce total earnings made from gold investments.

That said, the good news for UK residents is that there is no capital gains tax on sale of gold bullion coins classified as legal British currency. This includes all of The Royal Mint’s gold bullion coins that are considered legal tender in the UK, such as the Gold Britannia, Gold Sovereigns, and Gold Queen’s Beasts series.

In this blog, we’ll cover what you need to know about gold bullion coins and capital gains tax, including what CGT is, which gold coins are CGT-free in the UK, and how to reduce your CGT liabilities when investing in gold.

What is capital gains tax (CGT)?

Capital gains tax (CGT) is a tax paid on the profit or gains you make when selling certain assets. Instead of taxing the total sales amount, CGT only applies to the profit you’ve made, calculated as the difference between the purchase price and the sales price. For example, if you bought a gold coin for £250 and later sold it for £500, CGT would apply only to the £250 profit, not the full sale price.

CGT applies to all assets sold for a profit, including bullion, stocks, or second properties. It’s usually charged at a rate between 20% and 28% depending on your specific circumstances. However, there’s a tax-free allowance (set at £3,000 for the 2024/2025 year) which means you won’t owe any CGT if your total gains for the year are below this amount. These allowances change each year, so speak to a tax professional to get the most up-to-date figures in your jurisdiction.

In the UK, CGT is a self-assessed tax. This means it’s up to each individual investor to declare and pay any capital gains tax they owe.

What is the capital gains tax allowance?

The capital gains tax (CGT) allowance is an annual tax-free threshold that allows investors to earn a certain amount of profit before it becomes liable for CGT. For the 2024/2025 financial year, the CGT allowance is £3,000. This means you only have to pay CGT if the total profit (not the sale value) from all your investments in a single financial year exceeds £3,000.

For example, if you purchased gold coins for £20,000 and are selling them for £22,500, you would be earning a profit of £2,500. This falls under the current £3,000 CGT allowance so you wouldn’t have to pay tax on the profits. However, if you bought gold coins for £20,000 and are selling them for £25,000, your profit would be £5,000. This is above the £3,000 allowance and you’d need to pay CGT on the extra £2,000.

One important thing to remember when it comes to CGT allowance is that it applies to all profits you’ve made in a year across all investments – not just one investment. So if you earn profits from selling other assets, such as property or shares, they would also count towards your CGT allowance and liabilities.

If your profits exceed the CGT allowance, the taxable portion is subject to rates between 20% and 28%, depending on your income level and the type of asset sold. Always speak to a qualified accountant or income tax professional for the most up-to-date, relevant guidance for your situation.

Do UK citizens pay CGT on gold bullion coins from The Royal Mint?

Gold bullion coins produced by The Royal Mint are CGT-free for UK residents due to their status as legal British currency. This CGT exemption applies to all gold, silver, and platinum bullion coins minted by The Royal Mint, including gold and silver Britannia coins, Sovereigns (from 1837 onwards), and the Tudor Beasts series.

The CGT exemption for bullion coins produced by The Royal Mint means that UK residents can make unlimited tax-free profits on these coins, regardless of the investment’s size or value. This poses a massive opportunity for investors as profits made on most other investments, such as paintings, antiques, and second properties, are all typically liable for CGT.

Note that the CGT exemption on bullion coins only applies to those with legal tender status in the UK. Legal tender bullion coins manufactured outside the UK do not benefit from this exemption and are fully taxable. Pre-1837 Sovereign coins, which are not legal tender, may still qualify for CGT exemption under HMRC’s chattels exemption if the sale amount falls below a specific threshold.

Read More: The Britannia Coin - All You Need to Know

How can I reduce my CGT liabilities when investing in gold?

There are a few ways that UK investors can minimise their CGT liabilities when investing in gold. These include:

Choose CGT-exempt gold coins

The simplest way to avoid paying CGT on your gold investments is to invest in British gold bullion coins manufactured by The Royal Mint. These include the gold Britannia coins or Sovereigns. Because these coins are considered legal British currency, they are not subject to CGT which means investors can earn unlimited tax-free profits upon sale.

Sell your bullion over multiple financial years

If your gold investments are liable for CGT, you may consider spreading your sales over multiple financial years to stay within the annual CGT allowance. For example, if you bought £14,000 worth of gold in 2012 and they’re worth £20,000 in 2024, you would be selling them at a profit of £6,000. Instead of selling them and realising that profit right away, you could sell half the gold investments in the current financial year and the remainder in the next.

This strategy makes the most of the CGT tax-free allowance, which in the 2024/2025 tax year is set to £3,000, meaning you don’t have to pay CGT on profits made under that amount. If you do decide to opt for this strategy, it’s important to be aware that gold’s spot price is constantly changing and so is the CGT tax free-allowance. This means that your remaining gold investments could be worth more (or less) in the following financial year.

Read More: Selling Gold: How to do it right

What are the best CGT-free gold coins to buy in the UK?

Some of the most popular CGT-free gold coins in the UK include:

Gold Britannias

The Gold Britannia coin is the UK’s official bullion coin, struck from 99.99% pure 24-carat gold and featuring the iconic Britannia design. Gold Britannias are issued each year by The Royal Mint in a range of sizes, including 1/10 oz, ¼ oz, ½ oz, and 1 oz.

The standard 1 oz Gold Britannia has a face value of £100 although its intrinsic worth is far greater and based on gold’s current spot price.

Gold Sovereigns

Gold Sovereigns are a historic British coin struck from 91.67% pure 22-carat gold. They’re available as a full Sovereign (1 oz), half Sovereign (½ oz), and quarter Sovereign (¼ oz), with the full Sovereign having a face value of £1. As with other bullion coins, however, the Gold Sovereign’s value is based on gold’s current spot price.

See More: The British Gold Sovereign - All You Need to Know

Queen’s Beasts series

The Queen’s Beasts series is a bullion coin collection inspired by the UK's rich heritage and tradition. These coins reimagine the 10 golden heraldic statues that were presented at Queen Elizabeth II's coronation in 1953. Each design portrays the coat of arms of a noble house associated with the monarchy.

The Queen's Beasts coins are made from 99.99% pure 24-carat gold and come in weights of 1 oz and 1/4 oz. The 1 oz coin carries a face value of £100 although its resale value is based on gold’s current market price. This popular series is not only CGT-free in the UK but also has added collectible value due to each coin’s unique design.

Tudor Beasts series

The Tudor Beasts series follows in the footsteps of the Queen's Beasts bullion coin collection, this time commemorating the royal heraldic beasts of the Tudor dynasty. Each coin features a distinct intricate design, adding collectible value to the series.

Each gold coin in the Tudor Beasts series is made from 99.99% pure 24-carat gold and is available in 1 oz and 1/4 oz sizes. The 1 oz Gold Tudor Beasts coin has a face value of £100.

Keep Reading: Gold Purity, Fineness, And Karat – What Is It And How To Check It

Do I have to pay CGT on gold bars?

Yes, gold bars are subject to CGT in the UK as they are not classified as legal British currency. If the profit you make from selling gold bullion bars exceeds the annual CGT allowance, you’ll need to pay tax on the amount above the allowance.

Learn More: Pros and Cons of Buying Gold Bars vs Gold Coins

What silver bullion is CGT-free in the UK?

Like gold bullion coins, silver bullion coins are CGT-free in the UK when they’re classified as legal British tender. This includes the Silver Britannia coins, Silver Tudor Beasts, and Silver Queen’s Beasts bullion coin series.

Buy CGT-free gold bullion coins

If you’d like to invest in gold with capital gains tax advantages, the best way to do so is by buying gold bullion coins produced by The Royal Mint. At StoneX Bullion, we stock a range of gold, silver, and platinum coins that are CGT-exempt in the UK. From the iconic Gold Britannia to the unique and historic Silver Tudor Beasts series, we have a coin for every budget and investment appetite.

Browse our range of CGT-free bullion coins and get the most out of your precious metals investment today.