CGT-Free Investments
Britannias and Sovereigns
Along with the aesthetic and investment appeal to Gold Sovereigns and Britannia bullion coins, there are additional tax benefits that British residents can take advantage of when investing in the coins.
Britannia Coins:
The Gold Britannia was introduced in 1987 by the Royal Mint, while the Silver and Platinum counterparts were introduced in 1997 and 2018, respectively.
The coins weigh 1 Troy Ounce, which equates to 31.1 grams.
Britannia, the image portrayed on the coin, is seen as a guardian or protector of the British Isles and the image reflects the idea of Britain as a powerful and resilient nation. The image is used due to the instant recognisability among British people.
Sovereign Coins:
In recent decades, the sovereign has been classed as a bullion coin. The Gold Sovereign has a face value of £1 and can be used as legal tender in the U.K. The coin is 22ct gold, and contains a gold content of 0.2354 Troy Ounces, or 7.312 grams.
Tax Exemptions for Sovereigns & Britannia Coins
In the U.K., there are ways to avoid paying CGT on certain gold and silver bullion products. The aforementioned Sovereign and Britannia coins qualify as legal tender in the U.K., with the Gold Britannia being worth £100, the Silver Britannia being worth £2, and the Gold Sovereign being worth £1. As these coins are considered legal tender and they are exempt from capital gains tax for residents in the U.K.
This means that holders of these coins would not have to pay any tax on the profit made if they were to sell the coins. Gold Sovereigns and Gold Britannia coins are also exempt from VAT. The tax exemptions mentioned are factors in the huge popularity of these coins in the U.K.
