Is gold really exempt from Capital Gains Tax in the UK?

Your tax-free gold investment might not actually be tax-free.

A lot of people think gold is automatically exempt from Capital Gains Tax.

It isn't.

Which gold is actually exempt

In the UK, certain legal tender gold coins minted by The Royal Mint, most notably Sovereigns and Britannias, are exempt from CGT.

The reason matters, because it tells you where the boundary is. HMRC's Capital Gains Manual explains it as a currency point rather than a gold point: "Sovereigns minted in 1837 and later years and Britannia gold coins are currency but, like all sterling currency, are exempt because of TCGA92/S21 (1)(b)."

So it is not that gold is favoured. It is that these particular coins are sterling currency, and sterling currency is not a chargeable asset. Note the date in HMRC's wording too: sovereigns minted before 1837 do not sit inside that sentence.

Which gold is not

But other gold investments may still be taxable, including:

1. Gold bars

2. Non-UK gold coins

3. Gold ETFs

4. Gold held through a company

These can be subject to CGT at up to 24% when you sell.

That 24% is the higher and additional rate on gains from 6 April 2026 under HMRC's published rates, with 18% applying where the gain falls within the basic rate band. Rates change, so check the current position, and remember your annual exempt amount comes off the gain before any of it.

Why holding it personally matters

And here's the key point:

To benefit from the CGT exemption, you need to hold qualifying UK legal tender coins personally, not through your business.

Once an asset sits inside your company you are in a different tax system. Company gains fall under corporation tax rather than personal CGT, there is no annual exempt amount, using a company asset personally raises benefit-in-kind questions, and getting the asset or the proceeds out to you is a second taxable event. A company buying bullion also raises the question of whether it is a trading company at all, which matters if you ever want business reliefs on an exit.

What to check before you buy

So before you assume your gold gains are tax-free, check exactly what you're buying and how you're holding it.

In practice: the specific coin and its mint year, whether it is UK legal tender, whose name it is held in, and whether what you are actually buying is a coin at all rather than an ETF or a contract tracking the price. Two purchases that feel identical can land very differently.

If your gains come from shares rather than metal, tax when you sell stocks and shares as an agency owner covers that, and capital gains tax and agency owners covers where the rates have been heading.

Rates, allowances and the treatment of specific investments change, and this is general information rather than advice on your holdings. If you want your position checked before you buy or sell, see how we work or talk to us.