Are Gold Britannia Profits Tax-Free in the UK? CGT and Corporation Tax Explained 🪙
- John Massey
- 5 hours ago
- 4 min read
With gold prices rising, many UK investors and owner-managed limited companies are asking the same question:
If we sell Gold Britannia coins at a profit, do we pay tax?
This article explains the UK tax treatment of Gold Britannia coins for both individuals and limited companies under current HMRC guidance and legislation.
Quick Answer
Individuals
Gains on qualifying UK legal tender gold coins (such as Gold Britannias and post-1837 Sovereigns) are not subject to Capital Gains Tax. This is because they are treated as sterling currency under Taxation of Chargeable Gains Act 1992 TCGA 1992 s21(1)(b) (see HMRC manuals CG76881 and CG78305).
Limited Companies (holding as investments, not trading)
The position is the same. If the coins qualify as sterling legal tender, they are not chargeable assets under TCGA. Therefore, no Corporation Tax on chargeable gains should arise on disposal.
Tax-Free Gold Profits, In Detail
Why Certain Gold Coins Are Exempt from tax?
Under TCGA 1992 s21(1)(b): Sterling currency is not a chargeable asset.
HMRC confirm in:
Because these coins are UK legal tender denominated in sterling, they fall outside the chargeable gains regime entirely.
The exemption is not about gold as a metal. It is about the legal status of specific UK coins.
Which Gold Is Tax-Free — and Which Isn’t? ⚖️
Many investors assume all gold is tax-free. That assumption is incorrect.
The tax treatment depends on whether the gold qualifies as sterling legal tender currency.
✅ Generally exempt (for individuals and companies)
Gold Britannia coins (UK legal tender)
Sovereigns minted from 1837 onwards
These are treated as sterling currency for capital gains purposes, producing:
are-gold-britannia-profits-tax-free-in-the-uk-cgt-and-corporation-tax-explained
No CGT for individuals
No Corporation Tax on chargeable gains for companies (where held as investments)
❌ Not exempt
The following are normally chargeable assets:
Gold bars and bullion wafers
Coins not issued as UK sterling legal tender (e.g. Krugerrands, Canadian Maple Leafs)
Gold ETFs or other financial instruments
These do not qualify as sterling currency under TCGA and are therefore taxable on disposal (subject to normal rules).
Limited Companies – Is the Position Really the Same? 📊
Yes — provided the company is holding the coins as an investment and not trading in bullion.
Here is why.
Corporation Tax on chargeable gains applies the TCGA framework to companies (CTA 2009 Pt 3)
If an asset is not a chargeable asset under TCGA (because it is sterling currency), it cannot generate a chargeable gain for Corporation Tax purposes.
Therefore, where a limited company disposes of qualifying Britannia coins:
An accounting gain will normally appear in the profit and loss account.
However, that accounting profit is not automatically a chargeable gain for Corporation Tax purposes.
Because the coins are not chargeable assets under TCGA 1992 s21(1)(b), no chargeable gain arises.
Accordingly, no Corporation Tax on chargeable gains should be payable.
In principle, the company position follows directly from the same legislative rule that applies to individuals.
When Would a Company Pay Tax on Gold? ⚠️
The position changes if:
🔹 The company is trading in bullion
If buying and selling coins forms part of its business activity, profits are likely taxable as trading income.
🔹 The gold does not qualify
Gold bars or non-UK legal tender coins remain chargeable assets and gains would normally be taxable.
For most UK limited companies simply holding Royal Mint Britannias as a reserve asset, those conditions do not apply.
Why This Is Not Always Clearly Explained
You will not find a single HMRC page stating:
“Limited companies pay no Corporation Tax on gains from Britannia coins.”
Instead, the conclusion is derived from:
TCGA 1992 s21(1)(b) (sterling currency exclusion)
HMRC CG76881 and CG78305 (confirmation that Britannias are sterling currency)
The application of TCGA rules to companies under Corporation Tax legislation
The statutory pathway is coherent — but it requires reading the rules together.
Practical Takeaway for UK Investors and Companies
If you are holding qualifying UK legal tender gold coins (such as Britannias or post-1837 Sovereigns):
Individuals: no CGT on disposal gains.
Limited companies (investment holding, not trading): no Corporation Tax on chargeable gains.
If you are holding gold bars, ETFs, or foreign legal tender coins, the position is different and gains are generally taxable.
Before assuming gold is “tax-free”, always check whether the specific type of gold qualifies under the sterling currency rule.
Key Takeaways 📌
⚠️ The exemption applies to specific UK legal tender coins — not all gold.
🪙 Gold Britannias and post-1837 Sovereigns are treated as sterling currency under TCGA 1992 s21(1)(b).
🧑💼 Individuals pay no CGT on gains from qualifying coins.
🏢 Limited companies holding qualifying coins as investments should not pay Corporation Tax on chargeable gains.
⛔ Gold bars, ETFs and foreign coins remain taxable assets.
If you are considering holding gold inside your limited company — or planning a disposal — it is worth confirming the classification before proceeding, particularly where gains are significant.
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