Are Gold Britannias VAT-Free in the UK?

Usually, yes. Gold Britannias qualify as investment gold, which is exempt from VAT in the UK, so you do not pay the 20% VAT that applies to most things you buy. But "usually" matters here. There are conditions, and a few coins fall outside them, so it pays to know the rules before you buy.

What counts as investment gold

HMRC treats gold coins as investment gold, and therefore VAT-exempt, when all of these are true:

• The coin is at least 900 thousandths pure gold.
• It was minted after 1800.
• It is, or has been, legal tender in its country of origin.
• It is normally sold at a price that is not more than 80% above the value of the gold in it.

You can read the full rules in HMRC's guidance on investment gold (VAT Notice 701/21).

Do Gold Britannias qualify?

Standard Gold Britannias are 24ct (99.99%) gold since 2013, and 22ct (91.67%) before that. Both are above the purity threshold, and Britannias are UK legal tender. So bullion Gold Britannias are normally VAT-free to buy. See our sell gold Britannias page for sizes, dates and the difference between the 22ct and 24ct versions.

The price condition is the catch

The 80% rule is the one that surprises buyers. Proof and special-edition coins are often priced well above their gold content because of the finish, the packaging and the limited number made. If a coin's normal selling price is more than 80% above the gold value, it may not count as investment gold and may carry VAT.

In practice, that means a standard bullion Britannia is VAT-free, while some limited-edition or proof coins might not be. The listing or the seller should tell you which applies. If they do not, ask.

A simple example

Imagine a coin where the gold content is worth £100. If the coin is normally sold for up to £180, it is within the 80% limit. If it is normally sold for £200 or more because of its finish and packaging, it is over the limit and may not be VAT-exempt. This is an illustration only, not real prices.

What about silver Britannias?

Silver is not investment gold, and silver coins and bullion generally attract 20% VAT in the UK when bought new. That is separate from the gold rules above, and is one reason silver coins can look expensive compared with their metal value.

VAT and Capital Gains Tax are different

VAT applies when you buy. Capital Gains Tax applies when you sell at a profit. British legal tender coins, including Gold Britannias, are generally exempt from CGT as well, which we explain in our selling tax guide. Foreign bullion coins are treated differently, so check which you own.

Why this matters when you sell

If you buy a coin that was VAT-free, you will not normally get anything back in tax when you sell. If you paid VAT on a coin, the resale price will not include it, which can make the sale price look low. Knowing which type you bought explains the difference.

Frequently asked questions

Are Gold Britannias VAT-free in the UK?

Standard bullion Gold Britannias normally are, because they meet the purity, legal tender and price conditions.

Do I pay VAT when I sell?

No. When you sell investment gold to a dealer there is no VAT for you to deal with.

Is a gold proof coin VAT-free?

Not always. It depends on whether its normal price is within 80% of the gold value. Ask the seller.

Do sovereigns work the same way?

Sovereigns are also investment gold in most cases. See our gold sovereign buyer's guide.

Selling Gold Britannias

For a free valuation, use our valuation form and we reply within 24 hours. This is general information, not tax advice, so check with HMRC or an accountant for your own situation.