Are Britannia Coins Legal Tender?
17/09/2025Daniel Fisher
The Britannia coin range – available in both gold and silver – is one of the UK’s most trusted and widely traded bullion series.
Investors across the world value Britannias not only for their purity and iconic design but also for their legal tender status, which provides significant tax advantages in the UK.
So, are Britannia coins legal tender? The answer is yes – but as we’ll see, their real value lies not in spending them on the high street, but in the unique benefits they offer to investors.
A Brief History of the Gold and Silver Britannia
The Gold Britannia was first launched by the Royal Mint in 1987, while the Silver Britannia followed a decade later in 1997. Since then, both have become flagship bullion coins for UK investors.
- Gold Britannias: Originally struck in 22-carat gold (91.7% fineness), they were upgraded in 2013 to 24-carat gold with a purity of 999.9 (99.99%). Each one-ounce coin carries a face value of £100.
- Silver Britannias: Introduced with a purity of 958 (Britannia silver standard) until 2012, they were upgraded to 999 (99.9%) fine silver in 2013. Each one-ounce coin has a face value of £2.
Both coins have since been issued annually in different sizes and weights, making them accessible to a wide range of investors.
Are Gold and Silver Britannias Legal Tender?
Yes – both Gold and Silver Britannias are legal tender in the UK. Each coin is produced by the Royal Mint, features the monarch’s effigy on the obverse, and carries a face value.
- Gold Britannia: £100 for a 1oz coin, with fractional versions carrying values of £50 (½oz), £25 (¼oz) and £10 (1/10oz).
- Silver Britannia: £2 for a 1oz coin, with fractional versions carrying values of 50p (1/4oz) and 10p (1/10oz)
In practice, it would be unwise to spend Britannias at their face value since their intrinsic metal content is worth far more. For example, a one-ounce Gold Britannia trades at many times its £100 denomination. Instead, the true appeal lies in their legal tender tax advantages.
Tax Efficiency - Why Legal Tender Status Matters
The most significant benefit of Britannias being legal tender is their exemption from Capital Gains Tax (CGT).
This means that when you sell Britannias at a profit, you won’t be liable for CGT — regardless of how much profit you make or how many coins you own.
Key tax advantages of Britannias:
- CGT-free for both Gold and Silver Britannias.
- VAT-free on investment gold — Gold Britannias are exempt from VAT.
- No upper limits — large investors selling high-value portfolios still benefit.
These rules are set by HMRC, and you can check the latest details directly on the UK Government Capital Gains Tax guidance. For silver investors, VAT will normally apply on purchase in the UK, but Britannias remain attractive thanks to their CGT exemption.
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What Does “Legal Tender” Mean in the UK?
Under the Coinage Act 1971 and the Currency Act 1983, a coin is legal tender if:
- It has a face value.
- It is minted by the Royal Mint.
- It is authorised by Royal Proclamation.
This includes coins in circulation, Maundy money, and bullion coins like Britannias and Gold Sovereigns.
Coins withdrawn from circulation, such as the “round pound” discontinued in 2017, no longer qualify as legal tender.
For those interested in the wider bullion market, the London Bullion Market Association (LBMA) provides internationally recognised standards that help underpin the credibility of coins like Britannias in global trade.
Are Britannias a Good Investment?
For many, Britannias are the ultimate investment coin in the UK. Here’s why:
- Gold Britannias: Pure 24-carat gold, globally recognised, and highly liquid.
- Silver Britannias: A cost-effective way to gain exposure to silver with the same tax-free benefits as gold.
- Both: Exempt from CGT and backed by the Royal Mint’s guarantee.
- Security: Modern Britannias feature advanced anti-counterfeit technology, including micro-detailing and latent imagery.
For a detailed analysis, read our guide: Are gold Britannias a good investment?.
FAQs - Gold and Silver Britannias
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Are Silver Britannias legal tender?
Yes. Silver Britannias are legal tender in the UK. A one-ounce Silver Britannia has a face value of £2, while fractional coins such as the ¼oz (£0.50) and 1/10oz (£0.20) also qualify as legal tender.
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Do Britannia coins qualify for Capital Gains Tax exemption?
Yes. Both Gold and Silver Britannias are exempt from Capital Gains Tax in the UK. This means investors can sell them at a profit without paying CGT, unlike many other assets.
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What are the face values of Britannia coins?
- 1oz Gold Britannia: £100
- ½oz Gold Britannia: £50
- ¼oz Gold Britannia: £25
- 1/10oz Gold Britannia: £10
- 1oz Silver Britannia: £2
- ½oz Silver Britannia: £1
- ¼oz Silver Britannia: £0.50
- 1/10oz Silver Britannia: £0.20
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Are Britannias VAT-free?
Gold Britannias are VAT-free in the UK under investment gold rules. Silver Britannias are subject to VAT on purchase but still benefit from Capital Gains Tax exemption when sold. Some precious metals dealers will offer a solution whereby silver Britannias can be bought and stored offshore to avoid incurring VAT.
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How do Britannias compare to Sovereigns?
Both Britannias and Sovereigns are legal tender and CGT-exempt. Britannias are larger (1oz vs 0.2354oz for Sovereigns), making them better for large investments. Sovereigns are smaller, offering flexibility and divisibility for investors.
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Both Gold and Silver Britannias are not only legal tender in the UK, but also some of the most tax-efficient and investor-friendly bullion coins available. Their exemption from Capital Gains Tax sets them apart from many other investments and ensures long-term appeal for both new and seasoned investors.
If you’re considering adding Britannias to your portfolio, they offer an unbeatable blend of purity, security, and tax efficiency.
For expert advice on buying and selling precious metals, contact the team at Physical Gold today on (020) 7060 9992 or get in touch online.
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