Read on to find out about Capital Gains Tax and how this may affect your purchases and sales.
What is CGT?
The CGT acronym refers to Capital Gains Tax. CGT is a tax on the profit made when you sell or release the value of an asset - during the time that you have owned them. An asset is considered as something you own which can be released and converted into cash. For instance, when you purchase gold such as bullion or coins from Hatton Garden Metals these items would then be considered as your assets.
Certain coins that we sell here at Hatton Garden Metals are Capital Gains tax exempt. This means that you benefit from unrestricted tax free profit on your investment of any size or value on all British legal currency bullion coins.
Which coins are CGT-Exempt?
British legal currency bullion coins (CGT Free) that can be bought from Hatton Garden Metals are:
- Full Sovereign
- Half Sovereign
- Gold Britannia
- Silver Britannia
CGT applies to all other gold and silver coins that are not considered as British legal currency bullion.
For 2019-2020 Capital Gains tax allowance is £12,000. This means that you do not pay Capital Gain Tax on an investment when you release a profit of up to £12,000 in one financial year. Please note the £12,000 is not the total value of your coins or bullion, but the profit made from the sale of your items i.e. the increased value of your coins or bullion from when you bought them to when you sold them.