VAT & Capital Gains Tax

Cardiff Gold · Tax Information

VAT & Capital Gains Tax

How UK tax rules apply to gold and silver bullion — and which of our products can save you money.

VAT-Free Gold Available

Precious metals are subject to tax because governments classify them as both investments and industrial commodities. In the UK, taxation depends on whether you're buying or selling, and whether you choose gold or silver. Silver is subject to VAT at the current UK standard rate[1] — if you're VAT registered and think you may be able to claim this back, we'd advise speaking to your accountant.

ℹ️ We don't offer investment or tax advice. For guidance specific to your circumstances, we'd always recommend speaking to an independent financial advisor or a qualified accountant before making any investment decisions.
Pre-Owned Silver

Our pre-owned silver comes with a reduced cost structure, where VAT is applied only to our profit margin. This means it's available at a notably reduced price compared to newly minted silver coins.

VAT won't be itemised on your invoice, and reclamation of VAT doesn't apply in this context.

Explore our silver coin range →
VAT-Free Investment Grade Gold

The EU Gold Directive, adopted in 1998 and effective in the UK from 2000[2], abolished VAT on investment-grade bullion across the UK and EU, standardising trade and establishing a level playing field for investment gold across Europe while helping prevent fraud.

Investment-grade gold is treated by governments as money or a financial asset, rather than a standard consumer good.

Capital Gains Tax Exemption on British Legal Currency

Capital Gains Tax is exempt on all British legal currency[4], including gold Britannia coins, silver Britannia coins, and gold Sovereigns — meaning you can make an unlimited tax-free profit on investments of any size and value on these coins.

CGT is payable on all other gold and silver coins that don't fall into this category, and all gold and silver bullion bars are taxable. This exemption doesn't apply to all gold — while no investment-grade gold is subject to VAT[3], standard gold bars and foreign bullion coins are still subject to CGT if your total profits exceed your annual tax-free allowance.

There's one further exception worth knowing: if you sell a non-exempt item (such as a gold bar or foreign coin) for £6,000 or less, it's entirely CGT-free regardless of your profit, under HMRC's "chattels" rule for personal possessions[6]. Between £6,000 and £15,000, a partial relief applies; above £15,000, normal CGT rules apply in full. This doesn't affect the coins above, which stay exempt at any value.

Example: you buy a 10g gold bar for £600 and later sell it for £5,800. Because the sale proceeds are under £6,000, no CGT is due at all — even though you made a £5,200 profit.
What Is Capital Gains Tax?

CGT is a tax applied on the collective profit of any assets you sell, give away, or dispose of that have increased in value — including bullion, property, financial assets like stocks and shares, or personal possessions like antiques or jewellery.

Unlike Income Tax, which applies to your overall income, CGT is only charged on the gain you make from selling the asset.

Example: you buy a non-exempt gold bar for £14,000 and later sell it for £19,000. You'd only pay CGT on the £5,000 profit, minus your annual exemption — not the full £19,000 sale price. (Sales of £15,000 or under may qualify for further relief — see below.)
Do You Have to Pay CGT?

This depends on which gold and silver bullion you invest in, and whether your profit in a financial year exceeds the annual CGT exemption[5] — currently £3,000 in total profit before any tax becomes payable.

For UK residents, coins produced by The Royal Mint are considered legal British currency and are exempt from CGT[4] — this includes gold, silver, and platinum coins such as the Britannia and Sovereign.

For non-exempt gold and silver — such as standard bars and foreign bullion coins — current CGT rates[5] are 18% for basic-rate taxpayers and 24% for higher and additional-rate taxpayers, applied to profits above your annual exemption.

It's the individual investor's responsibility to report and pay any CGT owed.

Sources

Every factual claim on this page is referenced below. We've linked directly to GOV.UK, HMRC, and LBMA — please check these primary sources yourself for anything time-sensitive, as tax rules can change.

  1. [1] VAT rates — GOV.UKCurrent UK standard VAT rate, applied to silver. gov.uk/vat-rates
  2. [2] The EU Gold Directive — LBMAHistory and effective date of the VAT exemption for investment gold. lbma.org.uk/alchemist/issue-25/eu-gold-directive
  3. [3] VAT Notice 701/21: gold — GOV.UKDefinition of investment-grade gold and its VAT exemption; general guidance on gold imports and exports. gov.uk/guidance/gold-acquisitions-imports-investments-and-vat-notice-70121
  4. [4] Capital Gains Manual, CG78305 — HMRC internal manualConfirms UK legal-tender coins (Sovereigns from 1837, Britannia coins) are exempt from CGT as sterling currency under TCGA92/S21(1)(b). gov.uk/hmrc-internal-manuals/capital-gains-manual/cg78305
  5. [5] Capital Gains Tax rates and allowances — GOV.UKCurrent annual exempt amount (£3,000) and CGT rates (18%/24%). gov.uk/guidance/capital-gains-tax-rates-and-allowances
  6. [6] Capital Gains Tax on personal possessions — GOV.UKThe £6,000 "chattels" exemption for items sold for £6,000 or less, and marginal relief up to £15,000. gov.uk/capital-gains-tax-personal-possessions
  7. [7] Capital Gains Tax — GOV.UKGeneral CGT guidance. gov.uk/capital-gains-tax
⚠ Precious metal prices can be volatile, and the value of your metal may go down as well as up. No responsibility can be accepted by Aegis Vaults Ltd for any loss caused by acting on information that we have provided.

Not Sure What Applies to You?

We're happy to point you to the right product — for tax advice, please speak to your accountant.

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Aegis Vaults Ltd (trading as Cardiff Gold) · Company No. 13859360 · VAT: GB406442617

CGT & VAT Exempt Gold