How to buy gold in the United Kingdom
The UK gold market is known for tax-efficient purchasing options, particularly the CGT exemption on legal tender coins like the Sovereign and Britannia. This guide covers the main dealers, products, and the unique tax advantages available to UK residents.
Compare UK gold dealers →Where to buy gold in the UK
- The Royal Mint (direct): UK government's official precious metals source. Sells CGT-exempt coins and bullion directly. Higher premiums but maximum trust and authenticity assurance.
- BullionByPost: Online dealer with competitive pricing, wide product range, and established reputation. Popular among UK buyers.
- Gold Investments: London-based dealer with over 40 years' experience. Offers personal service and competitive pricing.
- Chards: Lancaster-based dealer established in 1964. Known for fair pricing and reliability.
- Local coin fairs and dealers: Major cities like London, Manchester, and Birmingham host regular coin fairs. Meeting dealers in person allows inspection and negotiation.
Best gold products for UK buyers
- Gold Sovereign (22k, CGT-exempt): The most tax-efficient choice for UK residents. Legal tender status means capital gains are exempt from CGT. Highly recognisable and liquid. Contains approximately 0.235 troy ounces of pure gold per coin.
- Gold Britannia (24k, CGT-exempt): Pure gold, legal tender, also exempt from CGT. Available in 1 oz and fractional sizes (1/2 oz, 1/4 oz, 1/10 oz). Annual design change adds collectibility. Slightly lower demand than Sovereigns but still highly liquid.
- PAMP and Valcambi bars: Swiss-made bars with low premiums (2–4%) and high liquidity. Not subject to CGT exemptions, but offer value for larger purchases.
- 9ct jewellery: Not investment-grade (only 37.5% gold). Higher making charges apply. Not recommended for bullion investment.
CGT exemption on UK gold coins
One of the most significant advantages of buying gold in the UK is the Capital Gains Tax exemption on legal tender coins. The Gold Sovereign and Gold Britannia are legal tender in the United Kingdom, which means:
- CGT exemption: Capital gains on these coins are completely exempt from CGT for UK residents. This applies regardless of profit size or holding period.
- No reporting requirement: Unlike bars and collectible coins, CGT-exempt coins do not need to be reported separately on tax returns.
- Comparatively tax-efficient: Bars and pre-1933 gold coins are subject to CGT at 20% (for higher-rate taxpayers). Sovereigns and Britannia coins avoid this entirely.
This tax advantage makes Sovereigns and Britannia coins particularly attractive for UK investors compared to bars and foreign coins.
VAT on gold
Investment-grade gold in the UK benefits from VAT exemption, which is a significant advantage at the point of purchase:
- Gold (999 fine or better): VAT-exempt. Bars, coins, and fabricated items that meet the investment-grade standard (999 fine or better) do not incur VAT.
- Silver and platinum: Subject to VAT at the standard rate (20%). Makes gold relatively more attractive than other precious metals in the UK.
- Gold jewellery: Subject to VAT. Antique jewellery may qualify for exemption under specific circumstances.
Always confirm the VAT status of the specific product before purchasing. Dealers should clearly state whether VAT is included or exempt.
Premiums and storage
UK dealers apply similar premium structures to other markets. Sovereigns typically carry 3–6% premiums, Britannia coins 3–5%, and bars 2–4%. Prices vary based on market conditions and dealer inventory.
Storage options:
- Home safe: Maximum control but requires security considerations and insurance verification.
- Bank safe deposit box: Secure and low-cost, but limited access hours. Confirm insurance coverage.
- Allocated vault (BullionVault, GoldMoney): Insured, segregated storage with online access. Professional management suitable for large holdings.