Capital Gains Tax on Gold and Silver Coins in the UK

One of the most-asked questions from new UK bullion buyers is which coins are tax-exempt and why. The answer comes down to a single, specific rule, not the metal, not the design, but legal tender status.

The Legal Tender Rule

UK coins that are legal tender in the UK are exempt from Capital Gains Tax (CGT) for UK residents, because HMRC treats disposing of legal currency (even at a profit) as exempt from CGT, in the same way selling £5 notes at face value wouldn't be a taxable event. This exemption applies regardless of the coin's market value, which is why it's so valuable for investors.

Which Coins Qualify

The Royal Mint's Sovereign, Britannia (both gold and silver), and other UK legal tender bullion coins all qualify. Half Sovereigns and other UK legal tender fractional coins qualify too. The key test is simple: is it legal tender in the UK? If yes, it's CGT-exempt for UK residents.

Which Don't Qualify

Gold and silver bars never qualify, they aren't currency at all. Coins from other countries' mints, Krugerrands (South Africa), Maple Leafs (Canada), American Eagles (USA), and Kangaroos (Australia) are not UK legal tender and don't qualify, even though they're widely traded bullion coins. These can still make sense to buy for other reasons (often lower premiums, wide recognition), just factor in that a profit on sale may be taxable.

What CGT-Liable Gains Actually Mean in Practice

For non-exempt items (bars, foreign coins), any gain above your annual CGT allowance when you sell is potentially taxable. Many casual investors never exceed the allowance in a given year, particularly if they're not selling large holdings all at once, but larger or more active investors should keep records of purchase prices and dates.

This Isn't Tax Advice

Tax rules change, and your personal circumstances (residency, other gains in the year, how HMRC views your specific situation) affect what actually applies to you. This guide explains the general rule, not your specific position, speak to a qualified tax adviser before making decisions based on tax treatment.