In the UK, investment gold is exempt from VAT, while silver, platinum and gold jewellery are normally sold with 20% VAT. When you sell, gains on UK legal-tender coins such as the Sovereign and the Britannia are free of Capital Gains Tax, while gains on gold bars and foreign coins such as the Krugerrand can be taxable once your total gains for the year exceed the annual exempt amount.
VAT on gold: what counts as investment gold
HMRC VAT Notice 701/21 exempts supplies of investment gold. To qualify, gold must be in one of two forms:
- Bars or wafers of at least 995 thousandths purity, in a weight accepted by the bullion markets.
- Coins of at least 900 thousandths purity, minted after 1800, that are or have been legal tender in their country of origin, and that are normally sold for no more than 180% of the open-market value of their gold content. HMRC also publishes a list of coins that qualify automatically (Notice 701/21A).
In practice this covers the common bullion products: Sovereigns, gold Britannias, Krugerrands, Maple Leafs, Philharmonics and standard bars from recognised refiners. Gold jewellery, and gold that does not meet these tests, is taxed at the standard rate of 20%.
VAT on silver and platinum
There is no VAT exemption for silver, platinum or palladium. Bars and new coins are normally sold with 20% VAT included in the price. Some dealers sell second-hand silver coins under the margin scheme, where VAT is charged only on the dealer’s margin rather than on the full price, which makes them cheaper than new coins. In both cases the VAT is not refunded when you sell back, which is why silver buyback prices sit well below what you paid. You can compare current prices on our UK silver prices page.
Capital Gains Tax when you sell
If you sell gold or silver for more than you paid, the profit is a capital gain. Each person has an annual exempt amount of £3,000 (2026/27). Gains above it are taxed at 18% if they fall within your basic-rate band and 24% above it. Losses on chargeable assets can be set against gains.
You report gains through Self Assessment. You must also report disposals if your total sale proceeds for the year are more than £50,000, even if your gains are within the annual exempt amount. Keep invoices showing what you paid, including premiums and fees, because these reduce your gain.
Coins that are exempt from Capital Gains Tax
Sterling currency is not a chargeable asset for Capital Gains Tax. Because the gold Sovereign and the gold and silver Britannia are UK legal tender, HMRC treats gains on them as exempt, whatever their value. Coins that are legal tender elsewhere, such as the South African Krugerrand, are foreign currency, and HMRC guidance treats them as chargeable assets. Bars are chargeable too.
| Product | VAT when you buy | Capital Gains Tax when you sell |
|---|---|---|
| Gold Sovereign, gold Britannia | Exempt | Exempt (UK legal tender) |
| Krugerrand, Maple Leaf, Philharmonic | Exempt (investment gold) | Chargeable |
| Gold bar, 995 or finer | Exempt (investment gold) | Chargeable |
| Silver Britannia | 20% (or margin scheme if second-hand) | Exempt (UK legal tender) |
| Silver bars, foreign silver coins | 20% (or margin scheme if second-hand) | Chargeable |
| Gold jewellery | 20% | Chattel rules: generally exempt if sold for £6,000 or less |
A worked example
Illustrative figures: you buy ten 1 oz Krugerrands for £20,000 and sell them some years later for £26,000. Your gain is £6,000. After the £3,000 annual exempt amount, £3,000 is taxable: £540 at 18% or £720 at 24%. If you had held gold Britannias bought and sold for the same amounts, there would be no Capital Gains Tax to pay. You can check the current metal value with our gold calculator.
Buying from abroad
The same split applies when metal comes into the UK. Imports of investment gold are exempt from import VAT under Notice 701/21, while silver, platinum and jewellery brought in from outside the UK are normally subject to import VAT, and possibly customs duty, unless covered by your personal allowance. Postage, insurance and handling charges from overseas sellers can add to the cost. If you buy from a UK dealer, the VAT treatment is already reflected in the price you see, so comparing UK prices like for like is simpler.
Other points to know
- Trading. If you buy and sell frequently as a business, HMRC may treat the profits as trading income rather than capital gains.
- Inheritance Tax. The Capital Gains Tax exemption for legal-tender coins does not extend to Inheritance Tax. Gold and silver, including Sovereigns, form part of your estate.
- Gifts. Giving chargeable gold to someone other than your spouse or civil partner can count as a disposal at market value for Capital Gains Tax.
- Records. Keep invoices for as long as you hold the metal and for the period HMRC can enquire into the return after you sell.
Bottom line
Investment gold bars and coins are exempt from VAT in the UK; silver, platinum and jewellery are not. Gains on Sovereigns and Britannias are exempt from Capital Gains Tax because they are UK legal tender, while gains on bars and foreign coins can be taxed at 18% or 24% above the £3,000 annual exempt amount. Sales with total proceeds over £50,000 in a year must be reported.
Sources: HMRC VAT Notice 701/21 · HMRC VAT Notice 701/21A · GOV.UK: Capital Gains Tax · HMRC Capital Gains Manual CG78305
This is general information, not tax or investment advice.
Frequently asked questions
Is there VAT on gold in the UK?
Not on investment gold: bars of 995 purity or more and qualifying coins such as Sovereigns, Britannias and Krugerrands are VAT exempt. Gold jewellery is subject to 20% VAT.
Is there VAT on silver in the UK?
Yes. Silver bars and coins are normally sold with 20% VAT, or under the margin scheme for some second-hand coins. The VAT is not refunded when you sell.
Are gold Sovereigns free of Capital Gains Tax?
Yes. Sovereigns and Britannias are UK legal tender, so HMRC treats gains on them as exempt from Capital Gains Tax. Krugerrands and gold bars are chargeable.
What is the Capital Gains Tax rate on gold?
Gains above the £3,000 annual exempt amount are taxed at 18% within the basic-rate band and 24% above it.
