Gold coins
- Struck by national mints, such as the Royal Mint, in precise weights.
- Modern coins are 999.9 fine; traditional coins such as the sovereign are 22 carat.
- Available in small sizes, from a tenth of an ounce and below.
- Often carry anti counterfeiting features.
- British legal tender coins are exempt from Capital Gains Tax for UK residents.
- Carry a higher premium per gram than bars, especially the smaller sizes.
Gold bars
- Produced by refiners, typically 999.9 fine.
- Range from a gram or less to the 400 ounce bars traded between banks.
- Either cast, poured into moulds, or minted, stamped with a smooth finish.
- Lower premiums per gram, particularly in larger sizes.
- Not legal tender, so gains are subject to Capital Gains Tax.
The comparison that matters
| British coins | Gold bars | |
|---|---|---|
| VAT | Exempt as investment gold | Exempt as investment gold |
| Capital Gains Tax | Exempt for UK residents | Taxable on gains |
| Premium per gram | Higher | Lower |
| Selling part of a holding | Easy | Hard |
| Security features | Advanced on modern coins | Hallmarks and assay cards |
| Collector interest | Possible | Rarely |
Why the tax point usually decides it
Bars save you money on the premium when you buy. But if gold rises and you sell at a gain, Capital Gains Tax on a bar can wipe out far more than you saved. British coins avoid that entirely for UK residents. For most British buyers holding gold as a long term store of wealth, that makes British coins the better choice.
When bars make sense
- Very large purchases where the premium saving is substantial.
- Buyers whose gains would fall within their annual exempt amount anyway.
- Buyers who do not intend to sell for a profit.
Take advice on your own tax position. See VAT and Capital Gains Tax on gold.
Common mistakes
- Choosing bars for the lower premium without considering Capital Gains Tax.
- Buying large bars that cannot be sold in parts.
- Forgetting storage and insurance costs.
- Buying from unverified sources.
Questions people ask
Are gold bars VAT free?
Investment gold bars of the required purity are exempt from VAT in the UK.
Do I pay Capital Gains Tax on gold bars?
Gains on gold bars are chargeable. British legal tender coins are exempt for UK residents.
Are bars cheaper than coins?
Per gram, usually yes, especially larger bars.
Do you sell gold bars?
Not at present. We focus on coins, which suit most UK buyers better.
This guide is general information, not financial, investment or tax advice. The value of precious metals can go down as well as up.
