Budget 2026: What Does it Mean for Gold and Silver Holders?

Capital Gains Tax: What has the Budget changed?

Ahead of the Budget, there was some speculation that Capital Gains Tax rates could be brought closer to income rates, potentially increasing the top rate to 45%. However this change was ruled out, and the Budget has left the existing CGT rules for qualifying bullion unchanged.

This means exemption amounts remain the same, and that qualifying gold and silver coins will retain their existing tax advantages when selling your coins at a profit.

Why the type of gold or silver matters

The Capital Gains Tax treatment of physical gold and silver depends on the type of bullion you hold.

Qualifying UK legal tender gold and silver coins struck by The Royal Mint, including Britannias and post-1837 Sovereigns, are exempt from Capital Gains Tax. This means no Capital Gains Tax will be payable on any profits made upon selling these coins – making them an attractive option to many.

Any profits made from other gold and silver coins and bars not included in this category are liable for Capital Gains Tax. 

What does the 2026 Budget mean for the economy?

Chancellor John Healey announced measures aimed at easing pressure on household finances, including an extension to energy bill support and the 5p fuel duty cut. The national minimum and living wages will also increase by 3.9%.

However, the inflation outlook has worsened. The Office for Budget Responsibility now expects inflation to reach 3.1% in 2026 and average 3.4% for 2027.

Inflation, government borrowing, and interest-rate expectations remain important factors for the precious metals market as persistent inflation and economic uncertainty can support demand, and currency movements can also impact prices as gold and silver are traded internationally in US dollars.

Gold and silver prices this week

Both metals have experienced some price fluctuations this week. Following a dip below £3,000 on Friday, the gold price started the week hovering around the £3,000 mark. Shortly before the Budget announcement began, gold reached £3,054, before easing to £3,038 by 4.00pm.

Silver fell below £40 per ounce for a short time on Tuesday morning, before recovering to trade above that level on Tuesday afternoon and Wednesday.

What is next for gold and silver?

The main takeaway from the 2026 Budget is that the CGT exemptions for gold and silver remain unchanged.

Precious metals buyers should also continue to keep a close eye on inflation levels, interest-rate expectations, and movements in the pound, as these factors could have a big impact on gold and silver prices in the near future.