What Is Capital Gains Tax

What is Capital Gains Tax?

Capital Gains Tax (CGT) is a tax on profit or gains when you sell or dispose of an item. It is applicable to most assets that you may own I.e. bullion, shares, property. Each individual gets a tax free allowance of £6,000 (2023/24 tax year) any profits made over this amount in the tax year are taxed at 18- 28%. 

Most investors will never pay capital gains tax as it is only if £6,000 of profit is made in the tax year (2023/24). If an individual purchased £25,000 of gold in 2022 and sold it for £30,500 in 2023 as long as they had made no profit on the sale or disposal of other assets there would be no capital gains tax to pay. The capital gains tax free allowance is reviewed and may be changed each year. You can find the full information here: Capital Gains Tax: what you pay it on, rates and allowances: Overview – GOV.UK (www.gov.uk)

Do I pay capital gains tax on my bullion?

Gold, and silver bullion is subject to capital gains tax except for coins made by The Royal Mint that qualify as legal tender. There is no tax limit to making profit on these types of coins. You can see our CGT exempt gold coins and our CGT exempt silver coins.

What bullion is capital gains tax free?

All coins with legal tender made by The Royal Mint are capital gains tax free. This includes Gold Sovereign, Gold Half Sovereign, Gold Britannia, Silver Britannia etc.

Are gold bars capital gains tax free?

Gold bars are not exempt from capital gains tax and if an investor has used all their capital gains tax free allowance, then capital gains tax will apply.

Are silver bars capital gains tax free?

Silver bars are not exempt from capital gains tax and if an investor has used all their capital gains tax free allowance, then capital gains tax will apply.

Where can I learn more about capital gains tax?

You can find the full information here: Capital Gains Tax: what you pay it on, rates and allowances: Overview – GOV.UK (www.gov.uk)