CGT-Free Investments (Britannia & Sovereign Coins):
Gold Sovereigns and Britannia coins are two of the main investment coins in the U.K, being hugely popular with investors for many reasons. Both coins are produced by The Royal Mint, a well-renowned and historic British coin maker. Along with the aesthetic and investment appeal that both coins hold, there are tax benefits that British residents can take advantage of when investing in the coins. We will provide a brief overview of the two coins, while exploring the appeal that they have to investors, specifically within the U.K.
The Gold Britannia was introduced in 1987 by The Royal Mint, while the Silver and Platinum counterparts were introduced in 1997 and 2018, respectively. The gold coins were introduced as 22ct gold and stayed this way until 2013, when the coins were changed to 24ct gold. The coins weigh 1 Troy Ounce, which equates to 31.1 grams. Britannia, being the national personification of Britain, is depicted on the coin. The image is used due to the instant recognisability among British people.
The first gold sovereign was struck by the Royal Mint in 1489. At the time of the coin’s inception, it was the most valuable gold coin circulating around the U.K. The design of the Sovereign has remained mostly consistent, adding to the historical significance of the coin. The Gold Sovereign has a face value of £1 and can be used as legal tender in the U.K. The coin is 22ct gold, and contains a gold content of 0.2354 Troy Ounces, or 7.312 grams.
Capital Gains Tax (CGT):
Capital Gains Tax is a taxation on the profit that is made from investments when they are sold. In the U.K. the CGT rate varies from 18-28%. For 2023/24, investors are exempt from this taxation for profits under £6,000. That saying, any profit over this amount, is subject to CGT.
Tax Exemptions for Britannia Coins & Sovereigns:
In the U.K. there are CGT-free gold and silver bullion products. The aforementioned Britannia and Sovereign coins qualify as legal tender in the U.K., with the Gold Britannia being worth £100, the Silver Britannia being worth £2, and the Gold Sovereign being worth £1. As these coins are considered legal tender, they are exempt from capital gains tax for residents in the U.K. This means that holders of these coins would not have to pay any tax on the profit made if they were to sell the coins. Gold Britannia coins and Gold Sovereigns are also exempt from VAT. The tax exemptions mentioned are factors in the huge popularity of these coins in the U.K.
The Britannia and the Sovereign are two of the most popular coins in the United Kingdom. The Sovereign, in particular, has major historical significance behind it, while the Britannia is appealing to investors because of the gold content within the coin. Both are free of capital gains tax, adding to the appeal of investing in either coin. Britannia coins and Gold Sovereigns are in stock and available for immediate collection at Belfast Bullion.