How To Avoid Capital Gains Tax on Gold Investments in the UK.
Is gold investment tax-free in the UK and how can I avoid paying capital gains tax on gold in the UK? These are the two questions we get asked again and again, so we thought it would be helpful to detail in this updated guide for 2025, exactly what the tax implications of buying gold in the UK are, so that you can maximise your profits and make the best investment decisions.
In this updated 2025 guide, we explore how gold is taxed in the UK, which gold products are Capital Gains Tax (CGT) exempt, and why VAT-free gold stored in Switzerland through Gold Avenue offers an important advantage.
Do You Pay Capital Gains Tax on Gold in the UK?
The short answer: it depends on what type of gold you buy.
In the UK, Capital Gains Tax on gold UK applies when you sell an asset that has increased in value. This includes gold - unless the gold you own qualifies for an exemption.
As of the 2024/25 tax year:
- Individuals get a £3,000 CGT allowance annually.
- Gains beyond that threshold are taxed at:
- 10% for basic rate taxpayers
- 20% for higher or additional rate taxpayers
(HMRC: CGT Rates)
That means if you sell gold and your total profit exceeds £3,000 (from all taxable assets), you may owe CGT - unless you’ve invested in the right kind of gold.
Tax-Free Gold Investments: Gold Coins vs Gold Bars
Gold Sovereign CGT Exemption & Gold Britannia Tax Benefits
Certain gold coins minted by the Royal Mint - such as Gold Britannias and Gold Sovereigns - are designated legal tender in the UK. This means they are completely exempt from Capital Gains Tax, regardless of how much profit you make.
- Gold Sovereigns: Minted since 1817, these historic coins are CGT-free and VAT-free.
- Gold Britannias: Introduced in 1987, Britannias are legal tender and enjoy both CGT and VAT exemptions.
By contrast, gold bars and non-UK legal tender coins are not CGT-exempt. That means selling gold bullion - like 1 oz gold bars - may trigger CGT if your gains exceed the annual allowance.
Key takeaway: If you want to invest in tax-free gold investments in the UK, choose legal tender coins like Sovereigns and Britannias.
VAT on Gold Bullion UK: Is It Taxed?
Investment-grade gold, defined by HMRC as having a purity of at least 0.995, is exempt from VAT in the UK. This includes most gold bars and bullion coins.
However, silver, platinum, and palladium are still subject to 20% VAT, unless stored offshore.
Why Store Your Gold in Switzerland?
While legal tender coins may offer UK CGT benefits, storing gold bars in Switzerland opens a different set of advantages.
At Gold Avenue, all physical gold is:
- VAT-free
- Stored tax-free in secure Swiss vaults
- Outside the UK’s immediate tax jurisdiction
UK residents must still declare their overseas holdings and storing gold abroad doesn’t exempt you from UK gold tax laws, but it can delay or reduce exposure to tax at the time of purchase - especially for large investments.
Buying Gold Through a Limited Company: Tax Advantages
Can your business invest in gold? Absolutely.
Gold Investment and Limited Companies
Investing in gold through a UK limited company allows you to:
- Use company profits to purchase gold (after Corporation Tax)
- Offset losses or depreciating assets elsewhere in your portfolio
- Potentially defer Capital Gains Tax by holding assets long-term
Profits made when selling the gold would be subject to Corporation Tax (currently 25%) rather than CGT but if you buy legal tender coins, corporate investors can avoid CGT altogether. This is one way to engage in smart gold investment tax planning in the UK.
Always consult a financial advisor for tailored guidance on your company’s structure and your tax liabilities on investments.
Gold vs Savings Accounts: What’s the Better Investment?
While UK high-street banks offer interest rates of 1–4%, they typically lag behind inflation. Gold, on the other hand, offers a long-term store of value.
From 2000 to 2023, gold prices surged over 500%, outperforming cash savings and often equities during periods of crisis and inflation.
Gold offers:
- Inflation protection
- No default risk
- Tangible ownership (unlike paper-based assets)
Gold Investment Tax Guide UK: Summary & Tips
How to Avoid CGT on Gold UK: Final Thoughts
- Choose legal tender coins for total CGT exemption.
- Store in Swiss vaults to enjoy VAT-free buying and ultra-secure storage.
- Consider using a limited company to optimise tax efficiency.
- Diversify with ETFs in tax-advantaged accounts (like ISAs and SIPPs).
By investing smartly with Gold Avenue, UK investors can navigate gold investment tax rules in the UK efficiently, and protect their wealth with one of the world’s oldest, most trusted assets.