Bullion and CGT: Gold Britannia Coins

July 25, 2014 11:29 am

Gold Britannia Coins

Bullion and CGT: Gold Britannia Coins

What is CGT and why are certain coins exempt?

Here at ATS, we are forever answering queries in relation to Capital Gains Tax (CGT) and how it effects buying and selling gold bullion and why some bullion, such as the gold Britannia coins are exempt. So we thought it would be useful to explain what it is and its relationship to the precious metal industry. Please note we are not tax advisors, so please seek independent advice from a tax advisor for more information!

CGT as described by the HMRC is “a tax on the gain or profit you make when you sell, give away or otherwise dispose of something. It applies to assets that you own, such as shares or property.” Simply put, it is a tax on any profits an individual makes on items of property he or she owns.  Each British citizen has an annual tax-free allowance, which currently at this time of writing stands at £10,900 per person for 2013-2014. This means that disposing of an interest in shares or other property and making a gain can fall within this threshold of £10,900 and will be free of tax. However, CGT tax has not always been this amount and has been altered by successive Governments in the past. So how can we guarantee to safeguard against tax in the future?

Which coins are CGT exempt: Gold Britannia coins and Gold Sovereign coins

Thankfully all British gold coins are currently CGT free. This means if you buy and sell a gold sovereign coins or gold Britannia coins and make a substantial profit you will not be liable to pay any capital gains tax! The reason for this is the following:

a) they are British made and by making these coins tax free these coins are the most popular selling coins in the UK and thus it helps the UK economy.

b) they have a sterling denomination. Gold Britannia coins have a face value of £100, so you could in theory go to your nearest shop and spend it! Although in reality of course their intrinsic value is worth a lot more than the face value. Likewise gold sovereign coins also have a face value of £1.

Since 2013, Britannia coins have been minted in 24 ct (999.9) gold and are CGT free, whilst earlier editions of the Britannia were 22ct one ounce gold.

In summary if you want to make certain to safeguard against tax or if CGT is already a concern, invest in gold Britannia coins! For information about buying, please visit our faqs page on How to Buy and Sell Gold. For more information about Capital Gains Tax, please refer to the HMRC website.

Michael Cooper

Bullion Executive

ATS Bullion

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