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.
Although the majority of bullion and coin investors will not meet the Capital Gains Tax threshold on their bullion or coins, it is important to understand CGT and your tax free allowance.
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.
For further information on Capital Gains Tax please visit the HMRC website.
Please note it is the responsibility of the individual and not Hatton Garden Metals to declare any tax payable.