Gerrards Bullion - Your guide to investing in gold and silver

Investing in gold and silver bullion is a popular strategy for those seeking to protect their wealth, but it’s crucial to understand the main taxes that may affect your returns . Capital Gains Tax (CGT) What is CGT? Capital Gains Tax is a tax on the profit you make when selling (or otherwise disposing of) an asset that has appreciated in value. You are only taxed on the gain—the difference between what you paid for the asset and what you sell it for—not the total sale amount. Who pays CGT? Any individual whose total gains from the sale of all chargeable assets (including gold, property, shares, and antiques) exceed the annual CGT allowance (currently £3,000 for the 2025/26 tax year) is liable. Gains below this threshold are exempt, but anything above is charged at the prevailing rates. Current CGT rates (2025/26): Basic rate taxpayers: 18% on gains above the allowance. Higher/additional rate taxpayers: 24% on gains above the allowance. CGT exemptions for bullion Some gold coins are exempt from CGT. UK legal tender coins—such as Gold Sovereigns and Gold Britannias issued by the Royal Mint—are considered currency and, thus, entirely free from CGT for UK residents. This means unlimited tax-free gains are possible when investing in these coins, a significant perk for British investors. Other coins, bars, and foreign bullion may still incur CGT upon sale. Best practices for minimising CGT: • Consider selling in tranches across different financial years to stay within the annual allowance • Offset losses on other assets against your gains • Choose CGT-exempt products (like UK legal tender coins) if tax efficiency is a priority. 16