A note before we start
We are gold dealers, not tax advisers. This guide explains the general position as we understand it, but tax rules change and your own circumstances matter. Check HMRC guidance or take professional advice before relying on it.
VAT: investment gold is exempt
In the UK, investment gold is exempt from VAT. For coins, HMRC’s criteria are broadly that the coin:
- Was minted after 1800.
- Is at least 900 parts per thousand pure.
- Is or has been legal tender in its country of origin.
- Is normally sold for no more than 180 per cent of the open market value of its gold.
That covers sovereigns, Britannias, Krugerrands, Maple Leafs, Eagles, Buffalos and Philharmonics. For bars, investment gold must be at least 995 parts per thousand pure and in a weight accepted by the bullion markets.
Silver and platinum carry VAT
There is no equivalent exemption for silver or platinum, so they carry VAT at twenty per cent. That is why a silver coin costs noticeably more than its silver value. On this site, the price shown for silver and platinum already includes VAT.
Capital Gains Tax: legal tender coins are exempt
Coins that are UK legal tender are treated as sterling currency, and gains on them are exempt from Capital Gains Tax for UK residents. That includes:
- The sovereign in all its sizes.
- The Britannia, in gold, silver and platinum.
- Other Royal Mint legal tender coins such as the Royal Tudor Beasts.
What is not exempt
- Foreign coins, such as the Krugerrand, Maple Leaf, Eagle, Buffalo and Philharmonic.
- Gold bars, of any size.
Gains on these may be subject to Capital Gains Tax above your annual exempt amount, which HMRC sets each tax year. See gold coins vs gold bars.
Summary
| VAT | Capital Gains Tax | |
|---|---|---|
| British gold coins | Exempt | Exempt for UK residents |
| Foreign gold coins | Exempt | Chargeable |
| Gold bars | Exempt | Chargeable |
| British silver and platinum coins | 20 per cent | Exempt for UK residents |
| Foreign silver coins | 20 per cent | Chargeable |
Inheritance Tax
Gold, including tax exempt coins, forms part of your estate for Inheritance Tax in the same way as other assets. The Capital Gains Tax exemption does not remove it from your estate.
Keep your records
Keep receipts showing what you bought, when, and what you paid. Even where tax is unlikely to apply, good records make selling, insuring and passing on your gold much simpler.
Questions people ask
Do I pay VAT on gold coins?
Not on investment gold coins. Silver and platinum coins carry VAT at twenty per cent.
Are sovereigns Capital Gains Tax free?
Yes, for UK residents, as UK legal tender.
Are Krugerrands Capital Gains Tax free?
No. They are not UK legal tender.
Are gold bars Capital Gains Tax free?
No. Gains on bars may be chargeable.
Is gold exempt from Inheritance Tax?
No. It forms part of your estate.
This guide is general information, not financial, investment or tax advice. The value of precious metals can go down as well as up.
