Tax Implications Of Gold And Silver For Investors

As a UK investor, it is important to understand the potential tax implications of investing in precious metals. Gold and silver can be treated differently for Value Added Tax (VAT) and Capital Gains Tax (CGT) purposes, while the tax treatment can also vary depending on the type of coin or bar you own.

This comprehensive guide explores the key UK tax considerations when investing in silver and gold.

We cover VAT, Capital Gains Tax, Inheritance Tax (IHT) and the particular tax treatment of certain UK legal-tender coins.

Tax rules and individual circumstances can change, so investors should always check the current position and seek professional tax advice where appropriate.

What Is Capital Gains Tax?

Capital Gains Tax (CGT) is a tax that may be payable when you sell or otherwise dispose of an asset and make a gain. For an individual investor, this can include gains made from assets such as shares, property that is not your main home, and certain precious-metal investments.

CGT generally applies to the gain made when an asset is disposed of rather than simply because you own the asset. Gains and allowable losses across the tax year are taken into account when determining an individual’s overall taxable gains.

For the 2026/27 tax year, the annual exempt amount for individuals is £3,000. The main CGT rates for individuals are currently 18% and 24%, depending on the amount of taxable income and gains. Tax rates and allowances can change, so investors should check the current HMRC position when disposing of assets.

Selling gold or silver at a profit can potentially create a Capital Gains Tax liability. However, the treatment depends on the type of precious metal you own.

Certain UK legal-tender coins provide an important advantage for UK investors because sterling currency is exempt from CGT. This includes post-1837 Gold Sovereigns and Gold Britannias. Certain other UK legal-tender bullion coins can also benefit from CGT exemption.

HMRC specifically confirms that Sovereigns minted in 1837 and later and Britannia gold coins are sterling currency and therefore exempt from CGT.

Gold Sovereigns and Gold Britannias can therefore be particularly attractive to UK investors seeking to build a tax-efficient physical gold portfolio.

Gold held within an eligible pension arrangement may be subject to different tax rules. You can find out more about Pension Gold.

Tax treatment depends on individual circumstances. If you are unsure about your position, seek professional tax advice. Our team can suggest coins that qualify as CGT-free.

Silver CGT

Silver bars and many non-UK silver coins can potentially be subject to CGT when sold at a gain. Whether CGT is payable will depend on the investor’s overall taxable gains and individual circumstances.

Certain UK legal-tender silver coins can benefit from CGT exemption. This includes Silver Britannia coins, making them particularly attractive to UK investors building larger silver holdings.

This CGT treatment should not be confused with VAT. Silver purchased for delivery in the UK is generally subject to VAT even where the coin may be exempt from CGT.

Gold CGT

Selling gold bars or non-UK gold coins at a profit can potentially create a CGT liability if your overall taxable gains exceed the available annual exempt amount.

Certain UK legal-tender gold coins are treated differently. HMRC confirms that post-1837 Sovereigns and Britannia gold coins are sterling currency and are exempt from CGT.

The two best-known choices are Gold Britannias and Gold Sovereigns.

What Is VAT?

Value Added Tax (VAT) is added to most consumer goods and services in the UK. The current general rate of  VAT is 20%, with some items being at a reduced or zero rate. This is added at the point of sale, and the consumer will bear the charge.

What is Inheritance Tax (IHT)?

Inheritance Tax (IHT) is a tax that may be charged on a person’s estate when they die. An estate can include property, money, investments and possessions, including precious metals.

The tax treatment of an estate depends on its value, the beneficiaries, gifts made during the individual’s lifetime and any available exemptions or reliefs.

How Much Inheritance Tax is Paid?

For the 2026/27 tax year, the standard nil-rate band is £325,000 and the standard IHT rate is 40%. A residence nil-rate band of up to £175,000 may also be available where the relevant conditions are satisfied. Different exemptions and reliefs can apply depending on individual circumstances.

Because inheritance-tax planning can be complex, professional advice should be sought rather than relying on the tax treatment of a particular investment.

Gold Bars

If you opt for a gold bar (such as 100g, 1oz or 1 kilo), the purity needs to be at least 995 thousandths. The good news is that a majority of gold bars on the market exceed this, at 999 thousandths gold, with the rest generally meeting the minimum requirement.

Gold Coins

For gold coins, the purity target is lowered to 900 thousandths, meaning that any coin of 22 carats or higher will qualify. There are a few extra guidelines for coins – they must be minted after 1800, have been legal tender in their country of origin and not usually sell at more than 180% of the market value of their gold content. Essentially, these additional rules exclude very old, obscure numismatic coins.

If all this sounds complicated, don’t worry. Our investment gold range includes qualifying gold coins and bars that benefit from the investment-gold VAT exemption.

How can you take this a step further?

If you want your gold investment to be completely tax-efficient, then buying UK gold coins also benefits from being Capital Gains Tax-free. They already meet the VAT-exempt criteria but are also tax-free upon sale due to their legal tender status. With each Sovereign, Britannia, special edition UK coins and variants of these, each coin possesses an actual face value. Certain UK legal-tender gold coins, including post-1837 Sovereigns and Britannias, also benefit from CGT exemption, providing an additional tax advantage for UK investors.

Use our automated portfolio builder to get suggestions based on various investment objectives, including tax efficiency.

Will the UK ever remove VAT from silver?

Silver purchased for delivery in the UK is currently generally subject to VAT at the standard rate. Whether the Government changes the tax treatment of silver in future is a matter of tax policy and cannot be predicted. Investors who do not require UK delivery can explore our VAT-free silver options for bonded storage.

Is selling gold tax-free in the UK?

Certain British legal-tender gold coins, including post-1837 Sovereigns and Britannias, are exempt from CGT. Other gold investments, including gold bars and many non-UK coins, can potentially be subject to CGT when sold at a gain. Whether tax is payable depends on the investor’s overall gains and individual circumstances.

Why is gold VAT-free in the UK?

Qualifying investment gold is exempt from VAT under UK legislation. For bars and wafers, and for gold coins, specific criteria determine whether the investment-gold exemption applies. The exemption does not automatically apply to every product containing gold.