Capital Gains Tax (CGT)
Capital Gains Tax (CGT) is a tax levied on the sale of assets for residents of the United Kingdom.
CGT applies to most assets including art, property, cryptocurrency/NFTs and bullion. CGT only applies to any profits made in one year which are over the capital gains relief allowance which for the 2021/2022 tax year is £12,300. Any profits above this tax free amount are charged at a rate of 10% if you pay basic rate income tax, otherwise it is charged at a rate between 18% and 28% depending on your tax bracket.
For example: A work of art purchased for £30,000 and later sold for £50,000 would mean a profit of £20,000, minus the CGT tax relief amount of £12,300 equals a taxable profit of £7,700 which would be added to your taxable income. This example assumes no other assets have been liquidated.
There are very few assets exempt from CGT, one of which is all British gold coins issued after 1837, for the purpose of this article, British coins refers to the coins issued by The Royal Mint. This includes all sovereign denominations, proof and commemorative coins, and coins with face values such as the Britannia series due to their status as 'legal tender'. British gold coins issued before 1837 such as guineas and foreign gold coins such as the South African krugerrand and the United States eagle denominations are NOT exempt.
Bath Spa Capital offers a large range of gold coins issued by The Royal Mint post-1837. Their CGT exemption and potential for unlimited gains without obligation to pay this tax is just one of the reasons making British gold coins a particularly attractive asset for UK investors.
Overseas investors should see the taxation rules in their country of residence. For more information about CGT in the UK Click Here.