UK Capital Gains Tax on Gold — Sovereigns, Britannias & Bars
When you sell physical gold in the UK, you may owe Capital Gains Tax on the profit. But not all gold is taxable — UK legal-tender gold coins (sovereigns, Britannias, the Royal Mint's modern series) are completely CGT-exempt. This guide explains the rules, the allowance, and how to structure a sale so you don't pay more tax than HMRC actually expects.
The two categories of gold for UK CGT
HMRC treats physical gold in two groups:
1. CGT-exempt — UK legal-tender coins
If a coin is, or has ever been, valid UK legal tender, any gain on its sale is completely exempt from CGT. This includes:
- Sovereigns — all denominations: quarter, half, full, double, five-pound — minted from 1817 onwards
- Britannias — gold and silver, all sizes, every year since 1987
- Lunar series — UK-issued Royal Mint Lunars
- Queen's Beasts and Tudor Beasts series
- Royal Tudor Beasts, Myths and Legends, Music Legends series
- Any other Royal Mint commemorative coin issued with a face value in pounds sterling
The exemption is total — sell a Britannia for £1,500 profit and you owe nothing in CGT. There is no limit, no taper, no allowance threshold to worry about.
2. CGT-applicable — everything else
Anything that is not UK legal tender is subject to CGT in the normal way. That includes:
- Bullion bars (Royal Mint, PAMP, Umicore, Heraeus, Argor-Heraeus, etc.)
- Foreign coins — Krugerrands, Maples, Eagles, Pandas, Philharmonics, Buffalos
- Gold jewellery and scrap
- Pre-1817 hammered coins (still gold, but legally bullion not currency)
- "Gold rounds" — privately minted bullion in coin form without a sovereign face value
The CGT annual exempt amount
You get a fresh CGT-free allowance every UK tax year (6 April to 5 April the following year):
| Tax year | Annual exempt amount |
|---|---|
| 2024–25 onwards | £3,000 |
| 2023–24 | £6,000 |
| 2022–23 and earlier | £12,300 |
Net taxable gains up to this amount in a single tax year owe nothing. Above it, you pay CGT at:
- 10% (basic-rate band) or 20% (higher-rate band) on physical gold gains
- The applicable rate depends on your total taxable income for the year
The Section 104 pooling rule
For bullion bars and non-exempt coins, HMRC requires you to apply Section 104 pooling when working out gain or loss. Plain English version:
- All identical units of the same asset are treated as one "pool".
- When you buy more, the average cost across the pool is updated.
- When you sell some, you use the pooled average cost as your acquisition cost.
Example: You buy 10 × 1oz Krugerrands at £1,800 each, then 10 more at £2,200 each. Pool cost: £20,000 total / 20 ozt = £1,000/oz average. You sell 5 at £2,400/oz: proceeds £12,000, cost basis 5 × £2,000 = £10,000, gain £2,000.
Spot Bot's CGT report does not currently apply Section 104 pooling automatically — it shows each disposal with its actual purchase price. For a few transactions this is usually fine; for an active stack with frequent buys, hand the CSV to an accountant who will pool it properly.
Worked examples
Example A — Sovereign profit (no tax)
You bought 10 full sovereigns in 2020 at £350 each (£3,500 total). You sell all 10 in 2026 for £500 each (£5,000 total). Gain: £1,500. Tax owed: £0 (sovereigns are CGT-exempt).
Example B — Bar profit under allowance
You bought one 50g PAMP bar in 2023 for £2,200. You sell it in 2026 for £4,500. Gain: £2,300. That's under the £3,000 annual allowance for 2024–25 (assuming no other CGT events that year). Tax owed: £0.
Example C — Mixed bar + jewellery, over allowance
You sell a 100g bar (cost £4,000, sold for £8,500, gain £4,500) and inherited jewellery scrap (cost basis £600, sold for £1,200, gain £600) in the same tax year. Total gain: £5,100. Minus £3,000 allowance = £2,100 taxable. If you're a higher-rate taxpayer: £2,100 × 20% = £420 CGT owed.
How to structure sales to minimise CGT
- Sell sovereigns and Britannias instead of bars when you have a choice. Same gold, no tax.
- Spread sales across tax years — sell some on 5 April and the rest on 6 April and use two annual allowances instead of one.
- Transfer to a spouse before sale — UK spouses can transfer assets without triggering CGT, then each spouse uses their own annual allowance.
- Keep good records. Date of purchase, price paid, source. Without records HMRC may impute zero cost basis. Spot Bot's portfolio tracker stores all of this for you.
What you need to report
If your total taxable gains for the year exceed the annual allowance, you must report them through Self Assessment by 31 January following the tax year end. Even if no tax is due, you still need to report if your total proceeds (not just gains) exceed four times the allowance — currently £12,000 for 2024–25.
You don't need to report exempt coin sales at all (sovereigns, Britannias, etc.) — they don't appear on your tax return.