In the UK, investment gold (bars of at least 995 fineness and qualifying gold coins) is exempt from VAT under HMRC VAT Notice 701/21. Silver, platinum and palladium bullion are normally charged VAT at the standard rate of 20%.
What HMRC counts as investment gold
VAT Notice 701/21 sets out two groups of gold that are exempt from VAT:
- Bars and wafers of a purity of not less than 995 thousandths, in a weight accepted by the bullion markets.
- Gold coins minted after 1800, of a purity of at least 900 thousandths, that are or have been legal tender in their country of origin and are normally sold at no more than 180% of the open market value of their gold content.
HMRC also publishes a list of coins that meet these rules (VAT Notice 701/21A). In practice the Sovereign, the gold Britannia, the Krugerrand, the Maple Leaf and the Vienna Philharmonic are bought VAT free from UK dealers. Gold bars from recognised refiners qualify too.
VAT on silver, platinum and palladium
There is no investment exemption for other metals. New silver coins and bars carry the standard 20% VAT rate, which means one sixth of a VAT inclusive price is tax. On a silver coin priced at £60 including VAT, £10 is VAT. That gap has to be recovered by a rising silver price before you break even.
Some dealers sell pre-owned silver coins under the VAT Margin Scheme (VAT Notice 718), which applies to second-hand goods and collectors' items. The dealer pays VAT only on its margin, so the price you pay can be lower than for a new coin. Ask the seller whether a listing is sold under the margin scheme. Our silver coin price ranking shows the delivered price either way.
Capital Gains Tax: why Royal Mint coins stand out
HMRC's Capital Gains Manual (CG78305) states that Sovereigns minted in 1837 and later and Britannia gold coins are sterling currency, and sterling currency is exempt from Capital Gains Tax under TCGA 1992 section 21(1)(b). Coins count as currency only if they are legal tender when you acquire or dispose of them.
Foreign coins such as Krugerrands, Maple Leafs and Eagles are currency but not sterling, so HMRC treats them as chargeable assets. Gold bars are chargeable too. Gains on chargeable assets are taxed only above your annual exempt amount, which GOV.UK currently lists as £3,000 for individuals.
| Product | VAT | CGT for UK individuals |
|---|---|---|
| Gold Britannia, Sovereign | Exempt | Exempt (sterling currency) |
| Krugerrand, Maple Leaf, Philharmonic | Exempt | Chargeable |
| Gold bars (995+) | Exempt | Chargeable |
| New silver Britannia | 20% | Exempt (sterling currency) |
This is general information, not tax advice. Your own position depends on your circumstances. For VAT free gold with the CGT advantage, start with the gold Britannia prices across UK dealers, and read about bullion and numismatic coins before paying a collector price.
Related terms
Bullion Numismatic Coins Fineness
FAQ
Do you pay VAT on gold in the UK?
No VAT is charged on investment gold, meaning bars of at least 995 fineness and qualifying gold coins such as the Sovereign and Britannia. Gold jewellery is charged VAT as normal.
Is silver VAT free in the UK?
No. New silver bullion is charged VAT at 20%, although some pre-owned silver coins are sold under the VAT Margin Scheme, which lowers the VAT built into the price.
Are gold Sovereigns free of Capital Gains Tax?
HMRC treats Sovereigns minted in 1837 or later and Britannia gold coins as sterling currency, which is exempt from Capital Gains Tax.