Guides & Information
Capital Gains Tax Guide
Understanding CGT on gold and silver bullion in the UK — and how to invest tax-efficiently.
This is general information only
Tax rules can change and individual circumstances vary. Always consult a qualified UK tax adviser before making investment decisions based on tax considerations.
What is Capital Gains Tax?
Capital Gains Tax (CGT) is a UK tax on the profit ("gain") you make when you sell or dispose of an asset that has increased in value. You only pay CGT on your gain, not the total sale proceeds.
For the 2025/26 tax year, individuals have a CGT annual exempt amount of £3,000. Gains below this threshold are not taxed. Above this threshold, CGT rates for higher-rate taxpayers are 18% (basic rate) or 24% (higher rate) on most assets.
CGT-Exempt Gold Coins
Under HMRC rules, British legal tender coins are exempt from Capital Gains Tax. This is because sterling coins are classified as currency, and currency is exempt from CGT. The most popular CGT-exempt gold coins include:
Contains 0.2354 troy oz. Minted since 1817. One of the UK's most popular investment coins.
1 troy oz (also ½oz, ¼oz, 1/10oz). 999.9 fine gold. UK's flagship gold bullion coin.
UK-minted Royal Mint lunar coins in 999.9 fine gold — fully CGT exempt.
Royal Mint special issues struck as UK legal tender. CGT-free for UK investors.
Gold & Silver Subject to CGT
The following are generally subject to CGT on any gains made above your annual allowance:
Gold bars
All gold bars — including 1g, 100g, 1kg — are subject to CGT as they are not currency.
Foreign gold coins
Non-UK coins such as American Eagles, Krugerrands, Maples and Kangaroos are CGT-applicable.
Silver bullion
All silver — coins, bars and rounds — is subject to CGT. Silver coins are not UK legal tender.
Platinum & palladium
Industrial precious metals are treated as chargeable assets for CGT purposes.
Smart CGT Strategies
Focus on CGT-exempt coins
For UK investors, Sovereigns and Britannias offer all the benefits of physical gold ownership with zero CGT liability. This makes them exceptionally efficient for long-term wealth accumulation.
Utilise your annual allowance
Each tax year you have a £3,000 CGT annual exempt amount. Consider selling portions of your non-exempt holdings each year to realise gains within the exemption threshold.
Bed & spouse
If you are married or in a civil partnership, transfers between spouses are free of CGT at the time of transfer. Your spouse can then use their own annual exemption.
Keep detailed records
Record every purchase (date, weight, price paid, premium) and sale. HMRC requires you to report gains on your self-assessment tax return if they exceed the annual exemption.