Understanding CGT-exempt UK bullion coins

Which gold coins may fall outside UK Capital Gains Tax, why it follows legal-tender status rather than the mint, and the assumptions that commonly go wrong.

7 min read · Updated 2026-07-01

Contains tax information

The tax content in this guide was last reviewed on 2026-07-01. It is general information, not tax advice. Rules change and individual circumstances differ — verify the current position with official HMRC guidance or a qualified adviser.

Two separate taxes, routinely confused

Gold buyers in the UK encounter two different tax questions, and they have different answers driven by different rules. Conflating them is the single most common mistake.

VAT is about the purchase. Gold that meets the investment-gold conditions on purity and form may be exempt from VAT, and this can apply to coins and bars, British or foreign.

Capital Gains Tax is about the disposal. Certain coins that are UK legal tender may fall outside CGT — and this turns on legal-tender status, not on purity, not on the metal, and not on which mint produced it.

Why legal tender is the deciding factor

A UK legal-tender coin has a face value denominated in sterling. A Sovereign carries a nominal value of one pound; a 1 oz Britannia carries a nominal value of one hundred pounds. Those face values are economically irrelevant — nobody spends a Sovereign as a pound — but they are what makes the coin UK currency.

A Krugerrand, a Maple Leaf and a gold bar are not UK legal tender, however pure they are and however widely traded. That is why they generally do not carry the same CGT position as a Sovereign or a Britannia.

Assumptions that go wrong

Three shortcuts appear constantly and are all unreliable.

“It is from the Royal Mint, so it is CGT exempt.” The Royal Mint produces items that are not UK legal tender. The mint is not the test.
“It is gold, so it is VAT exempt.” Investment gold has specific conditions. Collectible, numismatic and jewellery items can fall outside them.
“All Sovereigns are treated the same.” Sovereigns have been minted since 1817 under many monarchs, and very old coins are not in the same position as modern ones. Date matters.

Where a status is unconfirmed, we say so

Every tax label on this site is attached to a published source with a review date. Where we have not been able to establish a position from a source we are willing to publish, the product is marked “unconfirmed” rather than assigned a guess.

How much is this actually worth?

The exemption only matters if you would otherwise have a taxable gain, and only above your annual allowance. For a modest holding sold gradually, the practical benefit may be nil.

It becomes material for larger holdings, for concentrated disposals, or where you have used your allowance elsewhere. In those cases the difference can be significant enough to outweigh the extra premium a Sovereign or Britannia carries over a Krugerrand or a bar.

That is a calculation about your own position, not a general rule — which is precisely why it needs an adviser rather than a website.

What to do

Use tax status as one input among several. Compare the delivered premium of a CGT-exempt coin against a non-exempt one and work out whether the extra premium is worth the potential exemption for the amount you are actually buying.

Then verify the current position independently before relying on it.

Not tax advice

This guide is general information, last reviewed on 2026-07-01, and is reviewed at least every 365 days. It is not tax advice and does not take your circumstances into account. Check the current position with official HMRC guidance or a qualified adviser.