Gold Coin Selling Tax UK: Do You Pay Capital Gains Tax?

You have a few gold coins to sell and one worry: will the taxman take a slice? For many UK sellers the answer is a pleasant surprise. British legal tender gold coins are generally exempt from Capital Gains Tax (CGT). But the rules are not the same for every coin, and getting it wrong can be expensive.

This guide explains which coins are exempt, which are not, how CGT works when it does apply, and what records to keep. It is general information and not tax advice.

Coins that are generally CGT-exempt

CGT does not normally apply to gains on coins that are British legal tender. In practice that includes:

• Gold sovereigns and half sovereigns
• Gold Britannias
• Gold £5 and £2 coins and other British gold proofs with a legal tender face value

Most British legal tender silver coins, such as silver Britannias, are treated the same way. The reason is that sterling currency is exempt from CGT, and legal tender coins are treated as currency. Check the rules for your own coins.

Coins and items that may be liable

• Krugerrands, Maple Leafs, Pandas and other foreign bullion coins, which are not British legal tender
• Gold bars and ingots
• Coins sold as part of a business that trades in coins

This is why the same £5,000 profit can be tax-free on a sovereign and taxable on a Krugerrand. See our comparison of gold coins and gold bars for how this affects the choice.

How CGT works when it does apply

CGT is charged on your gain, which is what you sell for minus what you paid, not on the whole sale. Everyone has an annual tax-free allowance, which gov.uk lists as £3,000 for individuals. Gains above it are taxed at 18% or 24%, depending on your income, for the 2026 to 2027 tax year. Rates and allowances change, so check gov.uk for the current figures.

Example. You bought a 1oz Krugerrand for £1,200 and sell it for £2,400. Your gain is £1,200, which sits inside the £3,000 allowance, so no tax is due if you have no other gains that year. If your total gains for the year were £8,000, you would pay tax on the £5,000 above the allowance.

Do I need to report it?

Exempt coins do not need to be reported. For taxable gains, you may need to report them to HMRC even if the tax due is nil, depending on the amount you received and your gains. Check the current gov.uk guidance or ask an accountant.

Keep records

Keep receipts, dates and amounts for what you buy and sell. If you are asked to show how you worked out a gain, these records matter, especially for foreign coins where the cost of the coin is the starting point.

VAT is separate

VAT applies when you buy, not when you sell. You do not pay VAT when you sell investment gold to a dealer. Buying is covered in our guide to VAT on gold coins.

Inherited coins

If you have inherited coins, different rules can apply, including the value at the date of death. See our guide on how to sell an inherited coin collection and our page for estates and probate.

Frequently asked questions

Do I pay tax on selling a gold sovereign?

Generally no CGT, as sovereigns are British legal tender. Check current guidance for your circumstances.

What about a coin that is worth more than its face value?

The exemption applies to legal tender coins even if they sell for much more than face value, though some commemorative or non-standard items are treated differently. If in doubt, ask.

Does the dealer report my sale?

That depends on the dealer and the circumstances. We recommend you keep your own records regardless.

Before you sell

This is general information, not tax advice. Check with HMRC or an accountant, particularly for a large holding. When you are ready, request a free valuation, or see our pages to sell gold coins and sell gold sovereigns.