British Gold Sovereigns
Capital Gains Tax (CGT) is a tax that individuals and businesses must pay when they sell or dispose of a capital asset, such as a property, shares, or investments. The tax was introduced in 1965 and is now a common feature of the UK tax system.
CGT on Gold Sovereigns
When it comes to selling British gold sovereigns, many investors are concerned about the potential for capital gains tax (CGT). Fortunately, there is good news for those who are looking to sell their gold sovereigns. In the UK, gold sovereigns are exempt from CGT, meaning you will not have to pay any tax on any profits you make from the sale of them.
CGT Exemption on Gold Sovereigns
The exemption applies to the sale of both gold and silver coins that are considered or categorized as being British legal tender. It is important to note; however, that this exemption only applies to the sale of British legal tender coins themselves. Any other items, such as coins, bullion bars or other collectibles that are not considered legal tender, are still subject to CGT.
Why Are Gold Sovereigns Subject to an Exemption of CGT?
There are several reasons as to why the sale of gold sovereigns are exempt from CGT:
- Gold sovereigns: are now seen as a form of investment rather than a form of currency. As such, the government has decided to treat gold sovereigns differently from other forms of investment.
- Gold sovereigns: are seen as a store of value and are often used to hedge against inflation. As such, the government is keen to ensure that investors are not deterred from investing in this asset class due to the potential tax implications.
- Gold sovereigns: are also a form of legal tender bullion, and the government is again keen to encourage investment in this asset class by exempting the sovereign from CGT. The government is providing a tax incentive for investors to invest in gold sovereigns.
When it comes to selling your British gold sovereigns, you will not have to worry about CGT. The government has chosen to exempt the sale of gold sovereigns from CGT, providing investors with a tax incentive to invest in them. This article is based on British tax law, which may differ from countries outside of the UK.
Disclaimer: Bullion Bulldog are not tax advisers and in no way proclaim to be. Please do your own due diligence and take professional tax advice before selling your gold sovereigns or and other form of bullion or precious metals.
Reference: Author: BullionBulldog.com 10-11-2023 All rights Reserved – This Article May Not Be Reproduced Without Prior Written Permission from The Author.