Capital Gains Tax on Gold

Important: We are not accountants, tax specialists, or financial advisors. The information provided here is for educational purposes only. We recommend consulting with a qualified tax advisor for guidance specific to your circumstances.

What is Capital Gains Tax?

According to GOV.UK:

"Capital Gains Tax is a tax on the profit when you sell (or dispose of) something (an asset) that has increased in value. It is the gain you make that is taxed, not the amount of money you will receive."

Capital Gains Tax applies to various assets including property, stocks and shares, antiques and collectibles, and investment gold bullion.

Allowances and Exemptions

The government provides an annual CGT allowance, meaning gains below a certain threshold are not subject to tax.

How CGT Applies to Gold Investment

When Does CGT Apply?

CGT is charged on the profit from selling gold, not the total sale proceeds. Each tax year, you have a CGT-free allowance. For the 2025/26 tax year, the annual CGT exemption is £3,000.

Many small investors never reach this threshold, meaning they may not owe any CGT on their gold investments.

Key Points for Gold Investors

• You are responsible for reporting and paying any CGT owed
• Keep accurate records of all transactions (dates, purchase prices, sale prices)
• Consult a qualified accountant for advice on your specific situation

Examples

Example 1: Under the threshold

• Bought £10,000 of gold in 2023
• Sold for £12,000 today
• Profit: £2,000
• Result: No CGT owed (profit is under the £3,000 allowance)

Example 2: Over the threshold

• Bought £10,000 of gold in 2023, sold for £12,000 (£2,000 profit)
• Bought £10,000 of Apple shares in 2015, sold for £20,000 (£10,000 profit)
• Total profit: £12,000
• Taxable profit: £12,000 - £3,000 = £9,000
• Result: CGT payable on £9,000

CGT Rates for 2025/26

The Capital Gains Tax rates for the 2025/26 tax year are:

• Basic rate taxpayers: 18% CGT
• Higher and additional rate taxpayers: 24% CGT

For the most current rates and detailed guidance, visit the GOV.UK Capital Gains Tax page.

How to Minimise CGT

Choose CGT-Free Gold Products

Gold Sovereigns and Gold Britannias are classified as legal tender in the UK, making them exempt from Capital Gains Tax. Other gold coins and all gold bars are not exempt.

Browse our CGT-Free Gold Coins

Strategies to Minimise CGT on Taxable Gold

1. Maximise your annual CGT allowance – Time your sales to stay within the tax-free threshold each year
2. Stagger sales across tax years – Spread large profits over multiple tax years
3. Make partial sales – Sell portions of your holdings in different tax years
4. Purchase smaller units – Buying smaller bars or coins makes it easier to sell incrementally
5. Offset losses – Use losses from other assets to offset your gains
6. Monitor gold prices – Future sales may have different gains or losses depending on market conditions

Tax Planning Example

You purchased £10,000 of gold in 2020, now worth £20,000. Rather than selling all at once (£10,000 taxable gain), you could:

• Sell half (£10,000 worth) in Year 1, using that year's CGT allowance
• Sell the other half in Year 2, using the next year's allowance

This approach allows you to potentially minimise or eliminate your CGT liability entirely.