Capital Gains Tax on Gold in the UK: Which Gold Is Tax-Free?
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Since April 2023, the UK’s Capital Gains Tax allowance has been cut from £12,300 to just £3,000. For anyone holding gold, that change makes one question more important than ever: is your gold taxable?
The answer depends entirely on what type of gold you own. Gold bars, ETFs, and foreign coins like Krugerrands are all subject to CGT. But UK legal tender gold coins (Britannias, Sovereigns, and other Royal Mint issues) are completely exempt, with no limit on the amount. One Bullion Club client, profiled in The Telegraph, has seen £16,000 in tax-free profit on a £120,000 gold coin portfolio. Had she held gold bars instead, she would owe HMRC up to £2,600 in CGT.
This guide explains exactly which gold is CGT-free, which is not, how much you could save, and the legal basis behind the exemption.
This guide is for informational purposes only and does not constitute tax advice. Consult a qualified tax adviser for guidance on your specific circumstances.
How Capital Gains Tax Works on Gold in the UK
Capital Gains Tax is the tax you pay on the profit when you sell an asset that has increased in value. For gold, the key figures for the 2024/25 tax year are:
| CGT Detail | Current Rate/Amount |
|---|---|
| Annual exempt amount | £3,000 (reduced from £12,300 in April 2023) |
| Basic rate taxpayers | 10% on gains above the allowance |
| Higher/additional rate taxpayers | 20% on gains above the allowance |
| Reporting threshold | Must report if total gains exceed 4x the allowance (£12,000) |
For most forms of gold (bars, ETFs, foreign coins, mining shares), any profit above the £3,000 annual allowance is subject to CGT. But there is one significant exception.
Which Gold Is CGT-Exempt in the UK?
UK legal tender gold coins are completely exempt from Capital Gains Tax. This is not a loophole or a grey area. It is established HMRC policy, grounded in primary legislation.
Because these coins are classified as sterling currency, any gain on their disposal falls outside the scope of CGT, regardless of the amount. There is no annual limit, no reporting requirement, and no threshold.
CGT-exempt gold coins
- Gold Britannias: all denominations (1oz, 1/2oz, 1/4oz, 1/10oz). Face value £100 (1oz). 999.9 fine gold. Read our complete Britannia guide.
- Gold Sovereigns: full, half, and quarter Sovereigns. Face value £1 (full Sovereign). 22-carat gold, minted since 1817.
- Queen’s Beasts gold coins: the 10-coin series minted 2016 to 2021.
- Tudor Beasts gold coins: the current successor series from the Royal Mint.
- Lunar series gold coins: Royal Mint Chinese zodiac series.
- Commemorative and proof gold coins: jubilee editions, coronation coins, and other special releases carrying UK legal tender status.
The key qualifier is UK legal tender status. It is the face value denominated in pounds sterling that triggers the exemption, not the gold content, the purity, or the coin’s age.
Gold that IS subject to CGT
| Gold Type | CGT Status | Why |
|---|---|---|
| Gold bars (any size) | Taxable | Not legal tender |
| Gold Krugerrands | Taxable | South African legal tender, not UK |
| Gold Maple Leafs | Taxable | Canadian legal tender, not UK |
| Gold American Eagles | Taxable | US legal tender, not UK |
| Gold ETFs (e.g. iShares Physical Gold) | Taxable | Treated as securities |
| Gold futures and CFDs | Taxable | Financial instruments |
| Gold mining shares | Taxable | Standard equity CGT rules |
Considering tax-free gold for your portfolio? Book a free call with one of our specialists to discuss which coins suit your goals.
How Much Could You Save? A Worked Example
Consider two investors who each put £50,000 into gold. Both see a 50% gain over several years, taking their holdings to £75,000: a profit of £25,000.
Investor A: Gold bars (subject to CGT)
| Item | Amount |
|---|---|
| Profit on sale | £25,000 |
| Less: annual exempt amount | -£3,000 |
| Taxable gain | £22,000 |
| CGT at 20% (higher rate) | £4,400 |
| Net profit after tax | £20,600 |
Investor B: Gold Britannias (CGT-exempt)
| Item | Amount |
|---|---|
| Profit on sale | £25,000 |
| CGT payable | £0 |
| Net profit after tax | £25,000 |
The difference: £4,400 on a single £50,000 investment. Scale that up and the numbers become substantial:
| Investment Size | 50% Gain | CGT on Bars (20%) | CGT on Britannias | Tax Saved |
|---|---|---|---|---|
| £50,000 | £25,000 | £4,400 | £0 | £4,400 |
| £100,000 | £50,000 | £9,400 | £0 | £9,400 |
| £250,000 | £125,000 | £24,400 | £0 | £24,400 |
| £500,000 | £250,000 | £49,400 | £0 | £49,400 |
For investors with six-figure gold holdings, the CGT exemption on legal tender coins is worth tens of thousands of pounds. And unlike an ISA or pension, there is no annual contribution limit.
The Legal Basis: Why This Exemption Exists
The exemption is grounded in the Taxation of Chargeable Gains Act 1992 (TCGA 1992), Section 21(1)(b), which provides that currency in sterling is not a chargeable asset for CGT purposes.
Since UK legal tender gold coins carry a face value denominated in pounds sterling, they are classified as sterling currency and fall outside the scope of CGT entirely.
This is not a temporary concession or a tax relief that could be withdrawn at Budget time. It is a fundamental feature of how CGT law defines chargeable assets. Removing the exemption would require amending primary legislation, which would have broad implications beyond gold coins.
HMRC confirms this treatment in its Capital Gains Manual at CG78305, which states that sterling currency is not a chargeable asset.
The Double Tax Advantage: VAT + CGT
Gold coins also benefit from a separate VAT exemption. Under HMRC rules, investment gold is exempt from VAT if the coin:
- Is of a purity of at least 900 thousandths (Britannias at 999.9 and Sovereigns at 916.7 both qualify)
- Was minted after 1800
- Is, or has been, legal tender in its country of origin
This means UK legal tender gold coins benefit from a double tax exemption: no VAT on purchase and no CGT on sale. No other mainstream gold investment available to UK residents offers both.
Note: this double exemption applies to gold. Silver Britannias are CGT-exempt (as legal tender) but are NOT VAT-exempt, as silver does not qualify under HMRC’s investment gold rules. This makes silver coins less tax-efficient overall.
CGT-Free Gold vs ISAs vs Pensions
Investors often ask how gold coins compare to other tax-efficient wrappers. The comparison is revealing:
| Feature | Gold Coins (Legal Tender) | Stocks and Shares ISA | SIPP Pension |
|---|---|---|---|
| CGT on gains | Exempt | Exempt | Exempt (within wrapper) |
| Annual contribution limit | None | £20,000 | £60,000 |
| Access to funds | Anytime | Anytime | From age 55 (rising to 57) |
| Income tax relief | No | No | Yes (on contributions) |
| Tangible asset | Yes (you hold the coin) | No | No |
| Counterparty risk | None | Platform/fund risk | Platform/fund risk |
| Inheritance | Simple to gift or transfer | Forms part of estate | Complex nomination rules |
| Correlation to stock market | Low (gold is a diversifier) | High (equity-linked) | High (equity-linked) |
The standout advantage: no annual limit. You can invest £20,000 or £2,000,000 in CGT-exempt gold coins in a single year. An ISA restricts you to £20,000 per tax year. A pension caps at £60,000. Gold coins have no cap at all.
Gold coins also carry zero counterparty risk. You own a physical asset, not a claim on a fund or a platform. In times of financial stress, bank failures, or market disruption, that distinction matters.
Do I Need to Report CGT-Exempt Gold to HMRC?
No. The disposal of UK legal tender coins is not a chargeable event for CGT. You do not need to report it on your Self Assessment tax return. There is no requirement to declare the purchase, the holding, or the sale.
However, it is good practice to keep:
- Purchase receipts and invoices proving the date and price of acquisition
- Certificates of authenticity (for graded coins, the NGC/PCGS certification serves this purpose)
- Storage and insurance records
These records are useful for insurance claims, estate planning, and as a precaution if tax rules were ever to change in the future.
Frequently Asked Questions
Are gold Krugerrands CGT-free in the UK?
No. Krugerrands are South African legal tender, not UK legal tender. UK residents who sell Krugerrands at a profit are liable for CGT on the gain above the £3,000 annual exempt amount. The same applies to Canadian Maple Leafs, American Eagles, and all other non-UK coins.
Are gold bars exempt from Capital Gains Tax?
No. Gold bars of any size or purity are not legal tender. They are subject to CGT at 10% (basic rate) or 20% (higher rate) on gains above the annual allowance.
Do I pay CGT if I give gold coins to my children?
Gifts of UK legal tender coins are not chargeable events for CGT purposes. However, gifts may be relevant for Inheritance Tax depending on the value and timing. If you gift coins and survive seven years, they fall outside your estate entirely.
What if I buy gold coins inside a limited company?
Corporation Tax rules differ from personal CGT. The legal tender exemption applies to individuals, not companies. Companies holding gold coins should take professional tax advice, as the treatment depends on how the coins are classified in the accounts.
Could the CGT exemption be removed in a future Budget?
Removing the exemption would require amending the Taxation of Chargeable Gains Act 1992 (primary legislation). This would be a significant and unprecedented step with implications far beyond gold coins. No government has proposed this. That said, prudent investors maintain records regardless of current tax treatment.
Is silver CGT-free too?
Silver Britannias and silver Sovereigns are UK legal tender, so they are CGT-exempt. However, silver is NOT VAT-exempt (unlike gold), meaning you pay 20% VAT on purchase. This makes silver coins less tax-efficient overall than gold coins, which benefit from both exemptions.
How Bullion Club Can Help
At Bullion Club, we specialise in CGT-exempt graded gold coins from the Royal Mint. Every coin we sell is UK legal tender, NGC or PCGS certified, and fully exempt from both VAT and Capital Gains Tax.
Our founder, Harry Thorne, was featured in The Times discussing how UK investors are turning to tax-efficient gold coins. We have also been profiled in The Telegraph, GB News (specifically covering the tax benefits of gold coins), and the MoneyMagpie Invest podcast.
Every client receives:
- A dedicated account manager who builds a tax-efficient portfolio tailored to your goals
- Full NGC or PCGS certification on every coin
- Free insured delivery or 12 months’ free vault storage
- Buy-back guarantee: we will buy your coins back at a competitive price
Feefo Platinum Trusted Service Award (2024, 2025, 2026). 5/5 customer rating.
Want to understand how CGT-exempt gold coins could fit your portfolio? Book a free, no-obligation call with one of our gold specialists.
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