CGT exempt assets in the UK: gold coins and more

Prior to the Autumn 2022 budget there was a lot of speculation that the chancellor would raise Capital Gains Tax. This has finally happened with Jeremy Hunt setting in place reductions in the CGT annual allowance starting in April 2023.

As a result, now is certainly as good a time as ever to review your estate planning. Doing this can help minimise the amount of CGT payable on your estate, meaning more of your assets reach your heirs – rather than the taxman. A good place to start is with our guide, What is Capital Gains Tax?

While our guide points you in the direction of resources that explain CGT allowances and reliefs, it doesn’t delve deeply into CGT exempt assets. This blog is here to fill this gap.

Did you know gold coins are exempt from CGT?

I was inspired to write this post after reading this article. According to this piece, gold coins from the Royal Mint are exempt from Capital Gains Tax. The Royal Mint confirms this and also points out that silver and platinum coins are also exempt:

Bullion coins from The Royal Mint are exempt from Capital Gains Tax for UK residents due to their status as legal British currency. In fact, all gold, silver and platinum bullion coins produced by The Royal Mint are classed as CGT-free investments; this includes gold and silver Britannia coins, Sovereigns and the popular Queen’s Beasts range. Due to their CGT exemption, investors can make an unlimited tax-free profit on all bullion coins produced by The Royal Mint. 

Investing in gold is currently popular. If it’s something you are thinking of doing, then investing in legal tender coins might be a smart move. If you invest in other gold items, such as bullion bars or even coins that are not produced by the Royal Mint, CGT applies to them.

What other CGT exempt assets are there?

As well as gold, silver and platinum coins, there are quite a few other assets that won’t get caught in the CGT net. These are among some of the most common:

• Private cars. You don’t pay CGT on motor cars designed (or adapted) to carry passengers and are used as private vehicles. This even includes high value vintage or classic cars, regardless of age. However, the exemption doesn’t extend to vehicles like taxis, racing cars, vans and commercial vehicles, motorcycles, scooters, or single-seat sports cars.
• Gifts to UK charities. You don’t have to pay CGT on gifts (including land, property or shares) made to UK charities.
• Personal belongings – as long as they are worth less than £6,000.
• Your main home – provided you haven’t let it out, used it for business or it is very large (i.e. the grounds and buildings occupy more than 5,000 square metres).
• Prizes and winnings from betting – this includes the National Lottery.
• Money held in ISAs – although this cash will form part of your estate for Inheritance Tax
• Some government securities – you can find a list of these here. 

Are there other exemptions?

Yes, there are other CGT exempt assets, but this would be a very long article if we included them all. If you would like advice on which other assets are exempt, we strongly recommend talking to one of our tax planning experts. Get in touch today!