Part-Exchanging Gold and Silver for CGT-Exempt Coins

This option allows you to use the sales value of your gold or silver towards a new bullion purchase, rather than simply selling your existing holdings and deciding what to do with the proceeds separately.

Why part-exchange for CGT-exempt coins?

Over time, your bullion holdings can change considerably. You may have bought gold or silver when prices were lower, collected several different types of coins and bars, or simply bought products without considering their CGT treatment at the time.

If some of your holdings are potentially subject to CGT, you may be considering the option of moving towards owning UK legal-tender coins that are CGT-exempt. Gold Britannias and Post-1837 Gold Sovereigns are examples of UK legal-tender coins that are currently exempt from CGT.

Part-exchange can provide a way to explore this change using bullion you already own.

If you would like more information about CGT, and which coins are affected, see our Capital Gains Tax guide.

What does part-exchange mean?

Part-exchange is essentially a sell-and-buy transaction. You would provide the coins or bars that you would like to exchange, and its agreed sales value is then put towards the cost of your new items.

For example, you may have gold bars or non-UK gold coins that you no longer wish to hold. You could sell these and use the proceeds towards qualifying UK legal-tender gold coins such as Britannias or Sovereigns. The result would be that you have changed the type of bullion you hold, using the value already tied up in your existing holdings.

How does part-exchanging bullion work?

1. Choose the coins or bars you want to exchange

You may wish to exchange individual products, or a larger part of your collection. If you are considering the exchange because of CGT, you should identify the products that may be chargeable (gold and silver bars and non-UK Royal Mint coins).

2. See our website or contact us for a quote

The ‘Sell to Us’ page on our website shows the current prices we are paying for a large range of gold and silver coins and bars. The amount offered will depend on the products you are selling, their precious metal content, and their current market value. Alternatively, you can contact us for a quote.

3. Choose your replacement coins

Once you have an idea of the value of your existing bullion, you can decide what you wish to buy with the proceeds. For someone looking to hold CGT-exempt products, this could include qualifying UK coins struck by The Royal Mint such as:

• Gold and Silver UK Britannias
• UK Gold Sovereigns dated 1837 or later
• Gold and Silver UK Queen’s Beasts or Tudor Beasts
• Other qualifying British legal currency coins

4. Put the value towards your new purchase

The proceeds from the sale of your existing bullion will be used towards your new purchase. If the value of the products you are selling is less than the value of the new products you choose, you may need to pay an additional amount.

5. Complete your part-exchange

You can then hold your chosen UK CGT-exempt coins as part of your bullion holdings.

Does part-exchanging bullion avoid Capital Gains Tax?

No. Part-exchanging bullion is not a way of avoiding Capital Gains Tax. If the bullion you part-exchange is a chargeable asset, you may be liable for any capital gains that arise from the transaction.

Therefore, if you are considering part-exchange specifically because of CGT it is important to understand the tax implications before going ahead and seek professional tax advice if necessary.

So why consider moving into CGT-exempt coins?

The potential benefit of exchanging your holdings to CGT-exempt coins is what you hold after the transaction.

If the price of gold or silver rises in the long term, this may allow you to benefit from future growth while potentially avoiding Capital Gains Tax on any later gains, provided the coins continue to qualify for the exemption.

This can make CGT-exempt coins an attractive option for those looking to hold precious metals over the long term, particularly where future growth could otherwise create a Capital Gains Tax liability.

Also, moving your holdings into CGT-exempt coins could be a smart move if the current £3,000 annual Capital Gains Tax allowance were reduced or removed in the future. The allowance has already been reduced significantly in recent years, from £12,300 in 2022/23 to £3,000 today. Qualifying British legal currency coins such as Britannias and Sovereigns are treated by HMRC as Capital Gains Tax exempt, meaning these assets do not depend on having an annual CGT allowance and so unlimited tax-free profit can be made on these coins.

Part-exchange can offer a straightforward way to obtain CGT-exempt holdings without having to arrange the sale of your existing bullion separately from your new purchase.

What bullion can I part-exchange?

A wide range of gold and silver bullion is eligible for part-exchange, including:

• Gold bars
• Silver bars
• Gold coins
• Silver coins
• Silver rounds

The exact products we accept, and their valuation will depend on the individual items. If you are unsure whether something you own can be part-exchanged, the best option is to get in touch with us.

Is part-exchange suitable for my bullion?

If you have been holding gold and silver for several years, it may be worth taking another look at what you own. You may find that some of your items are potentially subject to CGT while others are exempt.

Part-exchange can give you the opportunity to review your holdings and consider whether moving some of your bullion into CGT-exempt coins fits with your own circumstances and future goals.

Thinking about part-exchanging your gold or silver?

If you hold gold or silver bars and coins that may be subject to Capital Gains Tax, we offer a part-exchange service where you can sell them to us and use the funds to buy CGT-free coins.

Simply call us on 0121 355 0620 and we will be happy to help.

*It is your own responsibility to be aware of any personal tax liability that arises from the sale of your gold and silver. Part-exchange does not cut any CGT liability. You will be issued with a self bill invoice for the goods you sell, and it is your own responsibility to declare any chargeable profits to HMRC. We recommend you seek independent professional advice to support your decision.