How to Buy Gold in UK: Britannias, VAT & CGT Tips

Investment-grade gold (bars and coins of 99.5%+ purity) is exempt from VAT in the UK — you pay no tax on purchase. And British legal tender gold coins — sovereigns and Britannias — are exempt from capital gains tax entirely, because they are legal tender. A UK investor holding Britannias pays no tax on purchase and no tax on sale.

Other gold — bars and foreign coins — is subject to CGT on gains above the annual allowance. That is why British investors overwhelmingly buy sovereigns and Britannias: the tax saving is worth more than any premium difference.

The Gold Britannia (24K, 1 oz, from the Royal Mint) is the default choice for UK investors — 99.99% pure, CGT-exempt, and instantly recognisable worldwide. The Gold Sovereign (22K, 0.2354 oz, minted since 1817) is the classic British gold coin — smaller, more affordable, and equally CGT-exempt.

Bars from 1 gram to 1 kilogram are available from the Royal Mint and LBMA-approved refiners, and carry lower premiums than coins — but they are not CGT-exempt, so for a UK investor the coin's tax advantage usually outweighs the bar's lower premium.

The Royal Mint sells Britannias, sovereigns and bars directly, with delivery or vault storage, and is the safest first stop for a new buyer. Established bullion dealers — BullionByPost, Chards, Atkinsons, GoldCore — offer competitive premiums and a wider range, including secondary-market coins at lower premiums.

Compare the total cost (including delivery and insurance) between two or three dealers, and check that the dealer is a member of the British Numismatic Trade Association or an LBMA member. Avoid unknown online sellers and social media dealers — the UK's reputable market makes them unnecessary.

A new Britannia typically costs a few percent over the spot price; a secondary-market sovereign costs less, because it has already been through the market once. Bars carry the lowest premiums of all, especially in larger sizes.

Premiums rise when demand surges and fall when it is quiet. Buying secondary-market coins (pre-owned sovereigns and Britannias) is the cheapest way to own CGT-exempt gold — the coin is the same, the tax treatment is the same, and the premium is lower.

Small holdings can be stored at home in a good safe, but check your home insurance — many policies limit cover for valuables. The Royal Mint offers vault storage for gold bought from it, and several dealers offer allocated vault storage in London, Zurich or Singapore.

For larger holdings, allocated vault storage (your specific coins or bars, held in your name, fully insured) is the standard choice, typically costing well under 1% of the holding's value per year. Bank safe deposit boxes are an alternative, though fewer UK banks offer them than they used to.