How Much Gold Can You Own?

If you’re new to the world of precious metals investment, you might be curious about the rules around gold ownership. For example, how much gold can you legally own, is gold ownership regulated, and is there a gold storage limit?

In this article, we share what you need to know about buying gold in the UK, including how much you can own and how gold is taxed.

How much gold can you own in the UK?

In the UK, there are no legal limits on how much gold a person can own. That means you’re free to buy, hold, and store as much gold as you want, whether it’s in the form of jewellery or bullion coins and bars.

There’s no government registry or cap on personal gold holdings, and you don’t need a license or any special permissions to invest. This makes the UK an excellent place for investors to store their wealth in physical gold.

Some countries have placed restrictions on private gold ownership in the past. In the United States, for example, the Gold Reserve Act of 1934 prohibited citizens from holding most forms of gold for decades. But there have never been any bans of this kind in the UK.

Similar Reading: Minimum Amount to Invest in Gold?

Is there a limit to how much gold you can own in the UK?

No, there is no legal cap on how much gold you can own in the UK. Whether you choose to buy a single 1-gram gold bar or invest in kilos of gold bullion, the amount of gold you hold is completely up to you.

That said, you might still have certain obligations when it comes to gold. If you sell your gold possessions and make a profit, for example, you might need to report it for Capital Gains Tax purposes. If you're buying or selling gold in large amounts, you might also need to submit proof of identity under anti-money laundering (AML) regulations.

How is gold taxed in the UK?

Even though there are no limits to how much gold you can own, there are still some rules that you should keep in mind – mostly when it comes to Capital Gains Tax (CGT) and Value Added Tax (VAT).

Capital Gains Tax (CGT)

If you sell your gold for a profit, you might need to pay CGT unless your gold is exempt. Some types of gold produced by The Royal Mint, like British Sovereigns and Britannia coins, are considered UK legal tender and are exempt from CGT. This makes both of these coins an excellent option for investors in the UK.

Other types of gold, like gold bars or non-exempt coins, are likely subject to CGT if profits are made when selling them. There is, however, an annual CGT allowance of £3,000 (according to the 2024/2025 tax year). This means you only need to pay tax on gains made above that amount across all of your investments, not just gold.

For example, if you bought gold for £20,000 and sold it for £22,500, your £2,500 profit is under the £3,000 allowance, so you don’t have to pay CGT. But if you sold your gold for £5,000, that £5,000 gain is over the threshold, so you’d have to pay CGT on the extra £2,000.

The CGT rate depends on your total income and could be up to 20% for most gold investments. Remember to always factor in capital gains made from other investments (like shares or property) as they also count towards your annual CGT allowance.

Learn More: Gold Bullion Coins & Capital Gains Tax

Value Added Tax (VAT)

Most investment-grade gold purchases are exempt from VAT in the UK. This includes all gold bars that are at least 99.5% purity and all gold coins that are at least 90% purity.

Inheritance Tax (IHT)

Gold can also be subject to Inheritance Tax. If the total value of your estate exceeds the IHT threshold of £325,000, any gold you own may be taxed at a rate of up to 40%. To minimise tax liabilities, you might want to consider setting up a trust or gifting your gold.

Read more about gold and inheritance tax in our article: Is Gold Exempt from Inheritance Tax in the UK?

What gold is tax-free in the UK?

In the UK, gold bullion coins produced by The Royal Mint, including Gold Sovereigns, Britannia coins, and themed series like the Queen’s Beasts, are all considered legal British currency. This makes them CGT-free for all UK residents, regardless of how much profit you make when you sell them.

Note that this tax-exemption only applies to Royal Mint coins with UK legal tender status. Other foreign legal tender coins, like the American Eagle or Canadian Maple Leaf, do not have the same CGT exemption in the UK. It’s also worth noting that Sovereigns minted before 1837 are not legal tender, although they might still qualify for tax relief under HMRC’s chattels exemption, depending on how much you sell them for.

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

If your gold investments aren’t CGT-free, there are still ways you can reduce your liabilities. As mentioned earlier, every person has an annual CGT allowance of £3,000, which means you don’t have to pay CGT on gains made below that amount. So if you were to spread your gold sales over multiple financial years, you might be able to stay under the annual CGT allowance.

For example, if your gold gains would be £6,000, you could sell half your gold one year and the other half in the following year to avoid paying CGT. Note that gold prices and CGT allowances can change, so what applies one year might not be applicable in the next. It’s always best to speak to a tax adviser for more tailored advice.

Do you need to report gold ownership in the UK?

No, there is no legal requirement for you to report gold ownership in the UK. So whether you’re holding a couple of gold coins or several bullion bars, you don’t need to declare your gold to any government agency just for owning it.

This means you can build and store your wealth in complete privacy, unlike other financial assets which might require registration, declarations, or regulatory oversight (e.g. stocks or property). Again, however, you may need to report your gold if you are selling it at a profit that’s above the annual £3,000 allowance.

Why buy gold?

We’ve already covered a few reasons why buying gold can be a strategic move in the UK. To reiterate, there’s no limit to how much you own, you’re not subject to any regulations or reporting requirements, and certain types of gold are exempt from CGT and VAT.

But there are other reasons why gold is such a valuable investment. Let’s take a look at why you should buy gold:

It can protect you in times of crisis

Gold has a long history of acting as a safe haven. Its value tends to rise during periods of uncertainty, when confidence in banks and financial markets tend to fall. This is why it’s known as the ‘crisis commodity’.

It doesn’t rely on technology

Physical gold is a tangible asset that doesn’t need electricity or the internet to exist. Unlike cryptocurrencies, stock platforms, or online banking, it’s not tied to any digital infrastructure, so it’s immune to cyber attacks or technical failures.

If the modern financial system ever faced a full-scale outage, your gold would still be there, with its value intact.

It’s politically secure

Governments can freeze bank accounts, seize funds, or change financial rules overnight, especially during periods of crisis. In 2008, for example, the UK banking system was within hours of collapse and former Chancellor Alistair Darling announced that the public was just two hours away from being unable to withdraw money from British banks.

Holding physical gold can provide protection against these kinds of situations, adding an extra layer between your assets and bureaucratic interventions. It’s one of the few assets that you can fully own in private, without depending on banks or governments.

It has no counterparty risk

Most investments, like stocks, savings accounts, or bonds, depend on the performance of external parties or entities. If a company goes bankrupt or a bank collapses, your money could be at risk.

Gold, however, doesn’t have that kind of uncertainty. Its value doesn’t rely on others to fulfill their obligations. It’s purely yours, and you can always sell it if you need access to currency.

It’s a proven hedge against inflation

Gold is considered one of the best hedges against inflation. When inflation erodes the purchasing power of paper currencies, gold’s value often rises. We’ve seen this over the last five decades when gold’s price soared while stock markets plunged during periods of high inflation.

Numerous currencies have lost their value over the years due to extreme inflation, and no currency is immune to this risk. At the end of the day, gold will hold its value and purchasing power despite fluctuations in currency.

For example, you may have been able to buy a car with $5,000 sixty years ago, but it’s doubtful you could do the same today. But 20 gold coins purchased sixty years ago are just as valuable today – probably even more valuable.

Read More: Why Buy Gold? Reasons to Invest in Physical Gold Bullion

Buying physical gold vs ETFs

There are two main options when it comes to purchasing gold: buying physical gold in the form of gold coins or gold bars, or buying gold-backed exchange-traded funds (ETFs), often referred to as ‘paper gold’.

Gold ETFs track the price of gold and are traded on the stock market like other securities. They can be a good option for investors who don’t want to deal with the logistics of storing and insuring physical gold, but they don’t have the same benefits of owning gold in its physical form.

Read: Everything You Need to Know About Gold ETFs

Here’s why physical gold is a better investment over gold ETFs:

Physical ownership

One of the main benefits of buying physical gold is that you can hold the asset directly, whether it’s at home or in a safety deposit box. You own something that’s tangible and recognised across the world as a store of value.

Gold ETFs, on the other hand, aren’t tangible assets. You don’t own any actual gold, but you own shares in a fund that represents a portion of gold held elsewhere. This gives you indirect exposure, which means your investment depends on third parties and financial systems.

As discussed earlier, relying on external entities to secure your investment doesn’t offer the same independence or reliability as physically owning and holding the asset yourself.

Security during periods of uncertainty

Physical gold has historically outperformed digital or paper-based investments during periods of uncertainty, whether it’s war, inflation, or economic instability. No matter what’s happening in the world, your physical gold is still accessible and valuable.

But if markets crash, ETFs can be frozen, liquidated, or delayed in payout. Because you don’t own the asset yourself, this could put your money at risk.

Tax advantages

Another advantage of owning physical gold is its CGT and VAT exemptions. In the UK, investment-grade gold bullion is VAT exempt when it meets certain purity standards. On top of that, gold coins produced by The Royal Mint are CGT-exempt, which means you can sell these coins at a profit without having to pay tax on the gains.

These tax exemptions don’t apply to ETFs, and you’ll need to pay capital gains tax on any profits made when you sell them.

Keep Reading: Gold Mining Stocks vs. Physical Gold as an Investment

Buy gold coins and bars today

With no limits to how much gold you can own, and favorable VAT and CGT exemptions, there’s no better time to purchase gold in the UK. If you’re ready to preserve and grow your wealth with the enduring value of physical gold, browse our collection of investment-grade gold bullion barsand coins today.