Capital Gains Tax (CGT)
Capital Gains Tax (CGT)
Capital Gains Tax is a tax which may be payable when an individual disposes of an asset and makes a profit, or gain. This page is intended as a general guide for UK individual investors. Tax circumstances vary, and investors outside the UK should check the rules which apply in their own country.
Assets such as bullion, investments, property and shares can potentially give rise to Capital Gains Tax when sold at a profit. CGT is normally calculated on the gain made rather than the total amount received.
For the 2026/27 tax year, individuals generally have an annual Capital Gains Tax exempt amount of £3,000. Gains above the available allowance may be taxed at 18% or 24%, depending on the individual's taxable income and circumstances.
Simple example
An investor buys bullion for £50,000 and later sells it for £76,000. The gain is £26,000.
Ignoring other allowable costs, losses or reliefs, deducting a £3,000 annual exempt amount would leave a taxable gain of £23,000. The applicable CGT rate would then depend on the investor's taxable income and how much of the gain falls within the relevant tax bands.
Bullion and Coins Which May Be Subject to CGT
Gold bars and ingots are not sterling currency and therefore do not benefit from the Capital Gains Tax exemption which applies to UK sterling currency.
Foreign bullion coins are also generally chargeable assets for UK CGT purposes rather than exempt sterling currency. This includes internationally traded bullion coins such as the South African Krugerrand.
Older British coins which are no longer legal tender, including pre-1837 Sovereigns, are not automatically exempt as sterling currency. However, separate Capital Gains Tax rules for personal possessions or 'chattels' may apply.
Gold Bars and Ingots
Not Exempt as Sterling Currency
Foreign Bullion Coins
Generally Not CGT Exempt
Pre-1837 UK Coins
Different Chattel Rules May Apply
Historic and collectable coins: A coin which is not legal tender may instead be treated as a chattel. Separate rules apply to chattels, including an exemption where the disposal consideration for an individual item does not exceed £6,000, subject to special rules including those relating to sets.
UK Coins Exempt from CGT
Sterling currency is exempt from Capital Gains Tax. HMRC specifically confirms that Sovereigns minted in 1837 and later years are currency and therefore exempt from CGT.
This includes modern bullion Sovereigns, Proof Sovereigns and Sovereign denominations which retain UK legal tender status.
Britannia coins issued as UK legal tender also benefit from the sterling currency exemption. This is one reason why UK Sovereigns and Britannias are particularly popular with UK investors holding physical precious metals.
Other modern UK collector and commemorative coins may also carry a sterling face value and legal tender status. Their precise status should always be checked for the particular issue concerned.
Sovereigns Struck
1837 to Date — CGT Exempt
UK Legal Tender
Collector Issues
UK Britannia
Legal Tender Issues
Important: Capital Gains Tax rules and allowances can change. The information on this page is intended as a general guide and does not constitute tax or investment advice. Individual circumstances can differ and professional tax advice should be obtained where necessary.