Tax-Free Gold
The Tax-Free Investment Most UK Savers Don’t Know About
How Gold Sovereigns and Britannias are 100% exempt from Capital Gains Tax — and what that means for your wealth.
What Is CGT and Why Does It Matter?
Capital Gains Tax (CGT) is charged on the profit you make when you sell an asset for more than you paid for it. The current CGT-free allowance is just £3,000 per year — the lowest it has been in over a decade. Gains above this are taxed at up to 24%.
This means that if you invest £50,000 in gold bars and sell them for £100,000, your £50,000 profit could attract up to £11,280 in CGT. That’s a significant portion of your returns handed to HMRC.
Tax note: Tax treatment depends on individual circumstances and legislation may change. Northern Gold Supply does not provide tax advice. Clients should seek independent professional advice where required.
Why UK Gold Coins Are Different
Gold Sovereigns and Britannias are classified as UK legal tender. Under the Taxation of Chargeable Gains Act 1992 (Section 21(1)(b)), all UK legal tender is exempt from Capital Gains Tax.
This means: the same £50,000 profit on Sovereigns or Britannias is taxed at exactly £0. No limit. No threshold. No matter how large the gain.
Worked Example
Gold Bars — Taxable
Sovereigns / Britannias — CGT-Free
The difference isn’t marginal. It’s the difference between keeping your profit and giving a quarter of it away.
Which Coins Qualify?
All UK gold coins produced by The Royal Mint as legal tender are CGT-exempt, including:
What About VAT?
Investment gold is exempt from VAT in the UK. This applies to all gold bars of 995+ purity and all gold coins meeting investment criteria. You pay zero VAT on any gold purchased through Northern Gold Supply.
Your Next Step
Get a CGT-Optimised Portfolio Recommendation
Book a free consultation and we'll show you exactly how to structure your gold holding for maximum tax efficiency.
Consultations are available by appointment. Evening and weekend slots may be available by arrangement.
