CGT Capital Gains Tax on Gold Coins
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link to www.taxfreegold.co.uk]
We are lead to believe that disposals of pounds sterling are exempt from Capital Gains Tax. As gold sovereigns, half sovereigns, and gold Britannias in all four sizes, are sterling, they are, or should be, treated as exempt from C.G.T.
Income Tax
The first thing for us to stress here is that we are not accountants or tax experts, but we will give you the benefit of our limited knowledge.
Some people think, or perhaps hope, that they will not have income tax to pay on profits. Gold is not exempt from tax on profits or earnings, although for most private investors, profits on investment gold would be dealt with under CGT (Capital Gains Tax) rather than as income.
Capital Gains Tax
Profits realised on disposals of investment gold would normally be subject to CGT, although there are now annual allowances before CGT becomes chargeable, so that most private investors would probably have no tax to pay.
Tax Free Disposal of Sterling
Way back in the 1960's, we read that profits on disposals of sterling were exempt from CGT. Sovereigns, half sovereigns, and other British gold coins are legal tender sterling coins, and as such should qualify as exempt. Gold Britannias are also legal tender sterling, so they would also qualify for the same status.
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United Kingdom