Capital Gains Tax When You Sell Gold and Silver | Birmingham Gold Company
Capital Gains Tax (CGT) When You Sell Gold
What is Capital Gains Tax?
CGT is a tax on the profit you make when selling or disposing of an asset, such as bullion, shares, property, or scrap precious metals like gold and silver. For the 2023/24 tax year, each individual has a £6,000 tax-free allowance. Profits above this are taxed at 18–28%, depending on the asset and your income.
If you bought £25,000 of gold in 2022 and sold it for £30,500 in 2023, with no other gains, you’d fall within your allowance and pay no CGT.
Do I Pay CGT on Bullion and Scrap Metals?
Yes—bullion bars, scrap gold, and scrap silver are subject to CGT if profits exceed your allowance. Legal-tender coins are the exception (see next section).
Keep detailed records of purchase and sale prices when dealing in large quantities.
Which Bullion Items Are CGT Exempt?
- Gold Sovereigns
- Half Sovereigns
- Gold Britannias
- Silver Britannias
These Royal Mint legal-tender coins carry no CGT liability on profit.
Are Gold & Silver Bars Exempt?
No—bars are not exempt and are considered investment assets. Profits above your allowance may be taxed. Retain clear purchase records to calculate gains accurately.
What About Scrap Gold & Silver?
Scrap metals are also subject to CGT if gains exceed your allowance. Larger collections or frequent sales can breach the threshold.
Always calculate gains carefully and consult a qualified advisor if needed.
Learn More or Get Advice
For official guidance, visit Capital Gains Tax – GOV.UK.
Disclaimer: This page is informational and not tax advice. Consult a qualified advisor for your circumstances.
