The short answer
UK legal tender coins, including Sovereigns and Britannias in gold and silver, are free of Capital Gains Tax. HMRC treats them as sterling currency, which is not a chargeable asset, however large the gain.
Gold and silver bars, and coins that are not UK legal tender such as Krugerrands and Maple Leafs, are chargeable assets. A gain when you sell them may be taxable, after your annual tax-free allowance of £3,000 for 2026 to 2027.
Why Sovereigns and Britannias are exempt
Sterling currency is not an asset for Capital Gains Tax (Taxation of Chargeable Gains Act 1992, section 21). HMRC's Capital Gains Manual confirms that Sovereigns minted from 1837 onwards and Britannia coins are UK currency, so gains on them are exempt.
Coins count as currency if they are legal tender when you buy or sell them. The exemption has no upper limit, and you do not need to report gains on these coins.
Which items are chargeable
The table shows the usual position for individuals in the UK.
| Item | Capital Gains Tax |
|---|---|
| Full and half Sovereigns (1837 onwards) | Exempt |
| Gold Britannias | Exempt |
| Silver Britannias | Exempt |
| Gold bars | Chargeable |
| Silver bars | Chargeable |
| Krugerrands, Maple Leafs and other non-UK coins | Chargeable |
How a gain on bars is worked out
Your gain is what you sell for, less what you paid and any allowable costs of buying and selling. Your gains across all chargeable assets in a tax year are added together, and the first £3,000 is tax free in 2026 to 2027.
Above that, the rate depends on your income: 18% on gains that fall within the basic rate band and 24% above it. Keep your invoices, as you will need the purchase price and date.
- Separate rules can apply to an item sold for £6,000 or less (the chattels rules). Whether they help depends on how the bullion was bought and sold, so take advice before relying on them.
- If you have a fractional holding in a bar through our investment programme, ask your tax adviser how these rules apply to it.
Choosing between bars and coins
For a buyer expecting a gain, Sovereigns and Britannias can be the more tax-efficient choice, even though they usually cost a little more per gram than a large bar. Bars can make sense for smaller holdings, or where gains are likely to stay within the annual allowance. The right answer depends on your circumstances.
Common questions
Do I pay Capital Gains Tax on Sovereigns?
No. Sovereigns minted from 1837 onwards are UK legal tender, so HMRC treats them as sterling currency and gains on them are exempt.
Are silver Britannias free of Capital Gains Tax?
Yes. Like gold Britannias, they are UK legal tender. Note that silver Britannias do carry VAT when you buy them.
Is there a limit on the exemption?
No. The exemption for UK legal tender coins applies however large the gain.
What rates apply to gains on gold bars?
For 2026 to 2027, gains above the £3,000 allowance are taxed at 18% within the basic rate band and 24% above it.
Sources
- GOV.UK: Capital Gains Tax rates and allowances
- Taxation of Chargeable Gains Act 1992, section 21
- HMRC Capital Gains Manual
This guide is general information for individuals resident in the UK, checked against HMRC guidance and the 2026 to 2027 rates in October 2026. It is not tax advice, and rules and rates can change. For your own circumstances, speak to a qualified tax adviser.