British Gold Coins and Capital Gains Tax

British Gold Sovereign Coin
The British Sovereign is one of the most widely traded gold coins in the World. Besides the intrinsic gold value that these coins hold, their appeal stretches beyond their weight in gold due to exemption from capital gains tax. The Full Sovereign weighs 7.9g, with the Half Sovereign weighing 3.9g, and the much more recent Quarter Sovereign weighing 1.9g. All Sovereigns are struck in .916 2/3 fineness, more commonly known as 22ct, and have been Minted by either the Royal Mint in London, or a royally sanctioned Mint in Australia, India, Canada or South America. Regardless of the country in which these coin have been minted, they all carry the British Design, and therefore remain legal tender, with a nominal value of one pound sterling. Needless to say the market value of these coins as an investment is significantly higher than their £1 face value.

Capital Gains Tax Exemption
British coins minted in 1837 or later years have unique appeal to the knowledgeable investor- they are exempt from Capital Gains Tax (CGT). Capital Gains Tax is a tax on the profit that one makes on disposal of assets. This exemption is not just true for the British Sovereign minted in 1837 and later years, but also include the larger one ounce Britannia’s, and the five & two pound coins. The British Coins along with all other ‘investment’ coins and bullion bars (as outlined by the European Commission) are tax-free. The additional benefit to Buying the British coins outlined above over a bullion bar or foreign coin is that they remain exempt from capital gains tax when selling on for a profit (or a capital gain). It is absolutely apparent that these coins have, and always will be, considered a valuable bullion asset. However, it is their Capital Gains Tax exemption that has facilitated the demand for British gold coins in recent years.

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