Atkinsons Bullion & Coins
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What is Capital Gains Tax (CGT)?

Capital Gains tax is a tax that is applied on the profit when you sell, give away or dispose of an asset you own that has increased in value.

These assets can include shares, bullion & real estate property.

CGT is payable if an investor realises over a certain amount of profit in one financial year.

What am I taxed on?

You are taxed on the gain that is made and not the total amount of money that is received.

For example: Over one financial year, an investor bought bullion for £25,000 and later sold it for £38,000. The investor made a gain of £13,000 and this is what they would be taxed on.

The tax rate that you pay varies from 18% to 28% - you can find the exact rate from the HM Revenue & Customs website. https://www.gov.uk/capital-gains-tax 

What assets are tax-free?

Certain assets are exempt from CGT, such as NISAs, ISAs or PEPs. Also exempt are UK government gilts & premium bonds, betting, lottery or pools winnings.

Do I have to pay CGT on gold & silver bullion?

In some cases, yes. CGT is payable if you make over a certain amount of profit from your bullion in a financial year. This limit is reviewed every year, so we would advise investors to check the CGT information page of the HMRC website for up-to-date information. The current* tax-free allowance for tax year April 2018 to April 2019 is £11,700. 
*As of 25.06.2018

Are there any bullion products exempt from CGT?

Yes. All coins produced by the Royal Mint and qualify as British legal currency are exempt from Capital Gains Tax. This includes all silver and gold Britannia coins and post-1837 gold sovereign coins, including proof sets. You can make unlimited tax-free profit on investments of any value on these coins.  This exemption make these coins popular with our customers. 

All other gold and silver coins and bars that are not in this category are taxable.

What is the best way to save on CGT when buying gold?

The best and most simple way to save from paying CGT on gold in the UK is by selling smaller quantities of gold bullion. As long as you sell your gold bullion to make a profit that is less than the limit set for that financial year, you will avoid having to pay any CGT.

The bottom line…

Most investors in gold or silver bullion need not worry themselves about CGT, due to the size and value of their investment. However, if you are planning to invest a substantial amount in gold, then investing in gold sovereigns or Britannia coins is the optimum choice for you. These UK coins are exempt from any Capital Gains Tax & allow you the freedom to invest and sell as much or as little as you require, as and when you need.

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