Holdings in these metals, regardless of their form, such as bullion coins, bullion coins, rare coins or bullion coins, are subject to capital gains tax. Physical holdings of precious metals such as gold, silver, platinum, palladium and titanium are considered by the Internal Revenue Service (IRS) as capital assets specifically classified as collectibles. The capital gains tax is only due after the sale of such holdings and if the holdings were held for more than one year. The Royal Mint bullion coins are exempt from capital gains tax for UK residents due to their status as a legal British currency.
In fact, all gold, silver and platinum coins produced by The Royal Mint are classified as CGT free investments; this includes Britannia gold and silver coins, Sovereigns and the popular Queen's Beasts range. Due to its CGT exemption, investors can earn unlimited tax-free profits on all bullion coins produced by The Royal Mint. This contrasts with the vast majority of other investments and assets, including paintings, antiques, most shares and any property that is not someone's primary residence, where profits from the sale are responsible for CGT. Holdings of precious metals such as gold, silver or platinum are considered capital assets and therefore capital gains can be applied.
When it comes to tax purposes, the IRS classifies precious metals as collectibles and, therefore, they may be taxed at the maximum collectible capital gains rate of 28 percent. However, be careful: while these fascinating gold coins will add diversity and interest to your investment, they are not exempt from CGT. The only gold coins that are not responsible for CGT are those that are legal currency of the United Kingdom, such as Gold Britannias and gold sovereigns of The Royal Mint. All coins produced by the Royal Mint that qualify as British legal currency are exempt from capital gains tax.
This includes all Britannia silver and gold coins and gold sovereign coins after 1837, including test sets. You can earn unlimited tax-free profits on investments of any value in these currencies. This exemption makes these coins popular with our customers. Are there any CGT-free gold and silver bullion products? The simple answer is yes.
Capital gains tax is exempt in every legal British currency. This includes Britannia gold coins, Britannia silver coins and gold sovereigns, just to name a few. Any coin produced by The Royal Mint with a nominal value will benefit from being a non-CGT gold investment or a non-CGT silver investment. This means that you can make unlimited tax-free profit on investments of any size and value in ALL of these bullion coins in British legal currency.
Physical holdings of gold or silver are subject to a capital gains tax equal to their marginal tax rate, up to a maximum of 28%. CGT will be the amount of tax you will have to pay on resale above profits when you sell your investment in gold. Coins will be considered legal tender at the time of their acquisition or disposal. This is the case not only for gold coins and bars, but also for most ETFs (exchange-traded funds) that are taxed at 28%.
If you think you are subject to capital gains tax on the gold bars you have purchased, consult a professional tax advisor. Fortunately, you can buy certain gold coins with the security of knowing that they are CGT free, so you won't be liable for the capital gains tax, however much you get from selling them. As a gold investor, you will have to pay CGT if you make more than £11,700 in profits in a financial year. As they also have a face value and therefore count as legal tender in the UK, some Royal Mint silver coins are also free of CGT.
As the name suggests, this coveted coin bears the image of Britannia, with the classic design of Philip Nathan. The CGT is applicable to a wide range of assets, such as property, antiques, stocks and investment gold bars. Gold bars are available in a variety of sizes and are therefore attractive investment proposals with flexible buying and selling options. The Royal Mint bullion coins are never subject to CGT, regardless of the number of coins purchased or sold.
Below is a description of how these investments are taxed, as well as their tax reporting requirements, cost base calculations, and ways to offset any tax liabilities arising from the sale of physical gold or silver. We keep records of all transactions with Britannia Coin Company for seven years, but we do not voluntarily send any details to HMRC unless specifically requested to do so. . .