CGT Capital Gains Tax on Gold Coins
of pounds sterling are exempt from Capital Gains Tax. As gold
sovereigns, half sovereigns, and gold Britannias in all four sizes, are
sterling, they are, or should be, treated as exempt from C.G.T.
first thing for us to stress here is that we are not accountants or tax
experts, but we will give you the benefit of our limited knowledge.
people think, or perhaps hope, that they will not have income tax to
pay on profits. Gold is not exempt from tax on profits or earnings,
although for most private investors, profits on investment gold would
be dealt with under CGT (Capital Gains Tax) rather than as income.
Capital Gains Tax
realised on disposals of investment gold would normally be subject to
CGT, although there are now annual allowances before CGT becomes
chargeable, so that most private investors would probably have no tax
Tax Free Disposal of Sterling
back in the 1960's, we read that profits on disposals of sterling were
exempt from CGT. Sovereigns, half sovereigns, and other British gold
coins are legal tender sterling coins, and as such should qualify as
exempt. Gold Britannias are also legal tender sterling, so they would
also qualify for the same status. Until recently, we were not sure that
this exemption was still current, but have now ascertained that it is,
and it does strengthen the case for investing in gold sovereigns in
preference to krugerrands or gold bars. We would advise any investors
to check with their accountants, tax advisors, or tax inspectors. We
had tried searching numerous times on the Customs & Excise website,
but failed to find the relevant information, however we recently found
what we were looking for, so...
More About CGT & Currency
From HM Revenue & Customs Website
Customs and Excise were recently merged with Inland Revenue, because
they were so inefficient. Their new combined website appears to confirm
our worst fears, that the efficiencies would work in the opposite
direction. It is very difficult to find the information you require on
their site. Very little seems to be stated clearly and succinctly.
CG78307 - Currency: coins: legal tender
Coins are to be regarded as currency only if they are legal tender at
the time of their acquisition or disposal. Coins which are currency but
not sterling, for example Krugerrands, are chargeable assets.
From this, it can be clearly inferred that sterling coins are exempt from Capital Gains Tax, indeed...
CG78308 - Currency: coins: legal tender
Sovereigns minted in 1837 and later years and Britannia gold coins are
currency but, like all sterling currency, are exempt because of
CG78309 - Currency: coins: chattels
Coins (including pre- 1837 sovereigns) which are not legal tender are
not currency. They are chattels and qualify for the chattels exemption
in TCGA92/S262. A gain on such a coin is therefore exempt if the
disposal consideration does not exceed the limits in CG76575. You
should bear in mind the possibility that the disposal of more than one
coin may constitute the disposal of a `set', see CG76630+.
The chattels exemption does not apply to coins which are non-sterling currency, TCGA92/S262 (6)(b).
CG78305 - Currency
Currency may take the form of notes, coins or travellers cheques.
Exemption From VAT
above information is taken from our "Tax Free Gold" website. We chose
this name because, as from January 1st 2000, VAT was removed from
"Investment Gold". Previously all gold bars and gold coins had been
subject to VAT, although there were special cases for antique coins,
and VAT did not always apply to gold coins from the introduction of VAT
in 1973, for a period they had been exempt.
We will add another guide later about Investment Gold.
About the Author
Chard is a director of Chard Coins of Blackpool, England, and has over
42 years experience in numismatic and bullion coins.
maintained a dealing service for both collectors and investors in
bullion and numismatic coins. During the period from 1965 to 1971, we
were one of only a small number of dealers who were granted a dealers
All our images and text are copyright.
Was This Guide Useful?
you found this guide interesting, informative or useful, please spare
few seconds of your time to vote for it by clicking on the "Yes" button
You may be interested in viewing our other guides:-
Definition of Investment - VAT Exempt (Tax Free) in UK & EU
London Gold Fixing Price
Gold Bullion Bars For Investment
Buying Jewellery as an Investment
How to Photograph Jewellery & Coins - Advice, hints, tips & more...
Second Chance Offers on eBay - Should You Use Them?
Spellings - Is Good Spelling Important - A Few Howlers
Pink Diamonds - One of Nature's Rarest Gemstones
Gold Coins Which Are Not Gold - Including German & € Euros
Postage Packing Shipping Insurance Charges - Fair or Excessive?
The Difference Between Proof and Uncirculated Coins