There can be some tax implications when it comes to selling your gold in the UK. In this article we will discuss the frequently asked question “Is selling gold taxable in the UK?”. The primary tax in question and associated with selling gold is usually Capital Gains Tax (CGT). We will delve into the specifics of CGT, how it applies to gold transactions in the UK, and what exemptions and considerations you should be aware of in the fiscal year 2024/25.
Capital Gains Tax is the tax on profit (“gain”) realised from the sale of certain assets. In simple terms, when the sale price exceeds the purchase price of the asset, CGT may be charged on the difference in prices (the profit). CGT is applicable to many different asset classes including shares, property, and precious metals (bullion) such as gold.
For the 2024/25 tax year, the annual exempt amount for CGT in the UK is set at £3,000. This means if your total gains from the sale of all applicable assets fall below this threshold, you will not owe any CGT in that year. However any items sold that push your total gains above the £3,000 amount will be applicable to CGT.
As an example if you bought a coin for £400 and sold it for £600 the CGT would apply to the price difference (gain/profit) of £200. If you had already exceeded the £3,000 CGT threshold then you would be paying CGT on the £200. The rate you pay would depend on your personal tax status, ranging from 18% for basic rate taxpayers to 24% for higher rate taxpayers, based on the updated legislation.
The CGT implications can vary depending on the type of gold you sell:
1. Investment Grade Gold: Investment grade gold such as coins and bars that meet specific standards in terms of the gold content/purity (usually 99.5% for bars and 90%+ for coins). Gold coins that are not classed as UK legal tender will be subject to CGT such as the South African Krugerrand. All gold bars in the UK are subject to CGT.
2. Gold Jewellery and Other Forms: Jewellery and other items (“chattels”) are taxable with CGT. You do however have a specific allowance on gold jewellery allowing you to sell £6,000 worth without CGT applying.
Any UK legal tender gold coins produced by the Royal Mint such as Sovereigns, and Britannia’s which are completely exempt from Capital Gains Tax regardless of quantity or value sold. This makes them a popular choice in the UK and are traded frequently.
If you realise you may be owe an amount of CGT after selling gold, you will need to report these gains to HMRC. This can be done via a self assessment tax return or through HMRC’s real time Capital Gains Tax portal. Deadlines and eligibility apply.
– Keep records: Maintaining detailed records of the purchase and sale prices, dates, and associated expenses is required for accurately calculating potential capital gains. This will help you later when it comes to finalising whether any tax is owed.
– Describe items accurately: e.g., “gold bar”, “Krugerrand”, “Sovereign”, “Britannia”; note fineness (such as 999) and weight.
– Understand that prices move: The price of gold moves throughout the day, so understanding market conditions can help you choose an opportune time to sell. You can view our page ‘How much is my gold worth’ to establish a current estimate.
– Get qualified advice for your situation: Given the complexities of tax regulations in the UK, consulting with a tax advisor or financial planner can provide tailored advice that considers your entire financial situation and personal tax situation.
If you are looking to sell British legal tender gold coins in the UK, including gold sovereigns you can currently enjoy CGT exemption on gains. Other gold bullion items may have CGT applied and you must report appropriately. Whether you are a casual collector or one-time buyer, understanding these implications can help you plan your sales and potentially reduce your tax burden. Stay informed about current tax laws and seek professional advice to ensure compliance and optimal financial planning. We always recommend seeking other professional financial guidance before filing any returns or making any decisions to sell your gold. Sell gold coins with us and we can offer transparent and market pegged pricing.
You can also find more CGT information on the Gov.uk website.
This page provides general information only and is not investment or tax advice. Tax rules can change and your circumstances matter – consult HMRC guidance or a qualified tax adviser.
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