Capital Gains Tax on Gold in the UK: Which Coins Are Exempt?

If you’re building a gold portfolio in the UK, tax treatment isn’t a footnote — it can meaningfully change what you actually keep when you sell. Some gold products are completely exempt from Capital Gains Tax (CGT), no matter how much they’ve grown in value. Others aren’t. Knowing the difference before you buy can shape which products make sense for your strategy.

Here’s exactly which coins qualify, why, and what that means for the rest of your holdings.

Why Some Gold Coins Are CGT-Exempt and Others Aren’t

The exemption comes down to one thing: legal tender status. UK legal tender gold coins are exempt from Capital Gains Tax regardless of how much profit you make when you sell them. This applies specifically to coins minted as official UK currency — most notably the Gold Sovereign and the Gold Britannia.

Gold bars and non-UK coins don’t carry legal tender status, so they don’t qualify for the same exemption. Any gains on those products are subject to CGT once they exceed your annual tax-free allowance (currently £3,000 for most individuals).

In practice, this means two investors holding the exact same £3,000 worth of gold could end up with very different tax bills when they sell — purely based on whether they held Sovereigns and Britannias or gold bars.

Gold Sovereigns

The Sovereign has been UK legal tender since the 19th century and remains one of the most widely held CGT-exempt gold coins in the country. Because it’s minted by the Royal Mint as official currency, every gain you make on a Sovereign — large or small — falls outside CGT.

Gold Britannias

The Britannia is a more recent addition but carries the same legal tender status. It’s minted in 24-carat gold and, like the Sovereign, is fully exempt from Capital Gains Tax on sale.

What About Gold Bars?

Gold bars are not legal tender, so they don’t benefit from the CGT exemption. If you sell gold bars for a profit above your annual CGT allowance, that gain is taxable. This doesn’t make bars a poor choice — they typically carry lower premiums over the spot price than coins, which can make them more cost-efficient for larger purchases — but it does mean the tax treatment needs to factor into your decision, particularly if you’re investing a significant sum.

Does This Affect VAT Too?

Tax treatment on gold splits into two separate questions: VAT (paid when you buy) and CGT (paid when you sell at a profit). Investment-grade gold bullion — both bars and coins — is exempt from VAT in the UK. That exemption applies regardless of legal tender status. It’s silver where the VAT picture changes, since investment-grade silver doesn’t carry the same blanket exemption. If you’re weighing gold against silver, that’s worth factoring in separately from the CGT question covered here.

How This Might Shape Your Buying Strategy

This isn’t a recommendation to only buy Sovereigns and Britannias — bars and other coins remain a legitimate part of many portfolios, particularly where premium efficiency matters more than tax exemption. But if you’re planning to hold gold long-term and eventually sell into a meaningful gain, it’s worth understanding upfront which products carry the exemption and building at least part of your holdings around that.

A common approach: use CGT-exempt coins for the portion of your holdings you’re most likely to sell down the line, and reserve bars for larger, lower-premium purchases you intend to hold as a longer-term store of value.

Frequently Asked Questions

Are all gold coins exempt from Capital Gains Tax in the UK? No. Only UK legal tender coins — Gold Sovereigns and Gold Britannias — are exempt. Foreign coins such as the Krugerrand or Canadian Maple don’t carry the same exemption.

Do I pay tax when I buy gold, or only when I sell it? CGT applies when you sell at a profit above your annual allowance. VAT is a separate consideration at the point of purchase — investment-grade gold bullion is VAT-exempt.

Is there a limit to how much CGT-exempt gain I can make on Sovereigns or Britannias? No. The exemption applies to the full gain, regardless of size, because of the coins’ legal tender status.

Should I only buy CGT-exempt coins? Not necessarily. Bars often carry lower premiums, which can matter more than tax treatment for larger purchases. The right mix depends on your goals, budget, and how long you plan to hold.

This article is general information, not personal tax advice. Tax treatment depends on individual circumstances — consult HMRC or a qualified accountant before making decisions based on your specific position.

Browse our full range of Gold Sovereigns and Gold Britannias, or see our complete Gold Bars range. Not sure where to start? Our buying guide walks through the basics.