British gold coins that are legal tender are CGT Exempt, meaning profits generated from their sale are not subject to Capital Gains Tax, at all. If you are looking at a gold investment, that is a clear advantage for gold coins, however, there are more benefits to think about.
If you have never invested in gold before, and are thinking of doing so, chances are you picture that gold as a bar of some sort. A gold bar has been the standard way we see gold for centuries, However, more and more people are turning to the gold coin market to invest in, especially for their CGT-Exempt benefits. What are CGT Exempt Gold Coins?
BUY CGT-Exempt British gold CGT-Exempt gold coins refers to certain gold coins that are exempt from Capital Gains Tax (CGT) in the UK. This means that when you sell these coins and make a profit, you do not have to pay CGT on the gains, unlike other investments that might be subject to this tax.
In the UK, CGT-Exempt gold coins include:
Gold Britannias
Gold Sovereigns
CGT Exempt Gold
What are the other benefits of owning Gold Coins Vs Gold Bars?
An investment in gold is usually about safe storage of your wealth, and for gold, historical pricing shows a tendency to rise in value over time too. But life is full of surprises, and while you might plan on storing wealth in gold for many years, sometimes you may need to liquidate an asset to deal with unforeseen circumstances. If you invest in a single large bar, then you must sell the whole bar if you wish to release the capital within, which may be far more than you need. With coins you can sell one or as many as required, while retaining your gold investment in the rest, giving you more options to manage your liquidity throughout your ownership.
Added Value of Gold Coins
Gold coins are not just an investment in gold, you are buying minted gold coins that are often desirable as collectors’ pieces in their own right aside from the value of the gold itself. Memorable dates and important years, for instance coins minted in 2022, the last year of Queen Elizabeth II’s reign, have added interest as a result. Some coins may match important dates in your life too, making them more than an asset and part of your journey, adding something extra to your investment strategy
In Conclusion
Gold coins have a number of advantages over bars, both in practical terms and financial. The clearest benefit of purchasing gold coins is that it removes taxation on profits made from your investment, and in itself is enough to recommend coins as the ideal asset to store wealth.For gold bars, they do have added value in some situations, and for anyone looking to make a significant investment in gold, bars do represent an attractive option.
The choice is always going to be personal, however for those starting out and smaller investors, coins have a very clear advantage. Even for those looking at larger investments, using coins as well as bars will often be a prudent solution, allowing tax free liquidity when required