Qualifying British legal tender bullion coins issued by The Royal Mint exempt from CGT for UK residents
London, Oct. 20, 2026 (GLOBE NEWSWIRE) -- The proportion of inbound calls to Solomon Global citing tax efficiency as the main reason for exploring gold rose by 20.63% between August and September 2026, highlighting growing interest in wealth protection ahead of the Budget.
CGT and the Budget
Capital Gains Tax (CGT) is in the spotlight as the Budget approaches. The current CGT annual exempt amount is just £3,000 for individuals in the 2026/27 tax year (down from £12,300 in 2022/23). Most taxable gains are charged at 18% (basic rate) or 24% (higher rate), depending on the taxpayer's circumstances. The rates were increased from 10% and 20% respectively, with immediate effect in the October 2024 Budget.
It had been rumoured that CGT rates could be aligned with income tax bands at the autumn Budget, potentially raising the rate to 45% for top earners. However, reports on October 13th indicated that Chancellor John Healey had ruled this out. Other changes to allowances or alternative rate hikes remain possible. There has also been mention of changing the treatment of capital gains on inherited assets. Currently, CGT is effectively 'erased' on death. However, if this rule is changed, anyone inheriting an asset with associated capital gain would have to pay that CGT when selling the asset in the future.
UK legal tender coins vs. other precious metals - Capital Gains Tax (CGT)
- UK legal-tender coins: For UK residents, qualifying British legal-tender bullion coins, including Gold Britannias, Sovereigns, and popular collections like The Royal Tudor Beasts issued by The Royal Mint, are completely exempt from CGT, regardless of the size of the profit realised.
- Gold bars and foreign coins: Gold and silver bars, alongside non-UK legal-tender bullion coins (such as the popular South African Krugerrand and Canadian Maple Leaf), do not qualify for the same exemption. Gains on these assets are taxable once an individual exceeds their £3,000 allowance.
Gold is VAT-free, but silver isn't
Qualifying investment gold is 100% VAT-free in the UK, whether purchased as bullion bars or coins. The exemption is subject to HMRC's definition of investment gold, which sets out requirements for purity, form and, in the case of coins, other qualifying criteria.
Silver bullion bars and coins are subject to VAT at the standard rate, as is platinum bullion. For further details, see HMRC's guidance on investment gold and VAT.
Case study: bars vs. coins
Here's how the current CGT regulations impact two UK investors who sell a gold investment for a £10,000 total profit:
- Investor A (gold bars): After deducting the £3,000 CGT allowance, the remaining £7,000 profit is taxable. At the current higher CGT rate of 24%, the investor faces a tax bill of £1,680.
- Investor B (Sovereign coins): Because UK legal-tender coins are exempt from CGT, the investor pays £0 tax and keeps the entire £10,000 profit, irrespective of their income bracket.
Why are people looking at physical gold?
Paul Williams, Managing Director of Solomon Global, said:
"With the Budget approaching, we're seeing more people asking how gold is taxed and what that means for their choice of bullion. The distinction between qualifying UK legal-tender coins and gold bars can make a significant difference to the tax treatment when an investment is sold. However, tax efficiency is only part of the picture. Against a backdrop of economic and geopolitical uncertainty, people are also looking at gold as a safe haven and for diversification. They want to hold a portion of their wealth entirely outside the traditional financial system, with direct ownership of a tangible asset."
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NOTES TO EDITORS
About Solomon Global
Solomon Global specialises in the secure delivery of physical gold and silver in bar and coin form for private ownership. The company takes a uniquely consultative approach to purchasing and selling physical gold and silver, regardless of the investment amount. Its straightforward and personalised approach helps anyone interested in exploring gold, from first-time buyers to seasoned investors and collectors, build and protect a lasting legacy.
Solomon Global's team of experienced gold and silver consultants are always available to discuss the attractive tax advantages for people purchasing gold and silver bullion in the UK.
Solomon Global was awarded 'Best UK Gold Bullion Dealer' at the ADVFN International Financial Awards 2026 & 2025, 'Best Alternative Asset Provider 2025' and 'Most Trusted UK Bullion Supplier 2025' at the London Investor Show Awards 2025, and 'Most Trusted UK Gold Bullion Supplier 2024' at The London Investor Show Awards 2024.
For any questions about buying or selling gold and silver, contact the team here:https://solomon-global.com/contact/
For further press information, please contact: Francesca De Franco on 0794 125 3135 or email fdefranco1@gmail.com
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Solomon Global disclaimer: This press release is for informational purposes only and does not constitute financial, investment or tax advice. Buying physical gold as an investment involves risk, as the value of precious metal prices can be volatile. Historical financial performance does not necessarily give a guide of future financial performance. We recommend that you conduct your own independent research and seek professional tax, legal and financial advice before making any investment decisions. Tax rules depend on individual circumstances and may change.
