Exempt From VAT
The reason we selected "Tax Free Gold" as the name of this website was because, as from January 1st 2000, VAT was removed from "Investment Gold". Previously all gold bars and gold coins had been subject to VAT, although there were special cases for antique coins, and VAT did not always apply to gold coins from the introduction of VAT in 1973, for a period they had been exempt.

Income Tax
The first thing for us to stress here is that we are not accountants or tax experts, but we will give you the benefit of our limited knowledge.
Some people think, or perhaps hope, that they will not have income tax to pay on profits. Gold is not exempt from tax on profits or earnings, although for most private investors, profits on investment gold would be dealt with under CGT (Capital Gains Tax) rather than as income.

Capital Gains Tax
Profits realised on disposals of investment gold would normally be subject to CGT, although there are now annual allowances before CGT becomes chargeable, so that most private investors would probably have no tax to pay.
Sterling is exempt from CGT, so profits on sovereigns, Britannias, half sovereigns, and other British gold coins, including proof sets are exempt.

Tax Free Disposal of Sterling
Way back in the 1960's, we read that profits on disposals of sterling were exempt from CGT. Sovereigns, half sovereigns, and other British gold coins are legal tender sterling coins, and as such should qualify as exempt. Gold Britannias are also legal tender sterling, so they would also qualify for the same status. We were not sure that this exemption was still current, but have just checked that it is, and it does strengthen the case for investing in gold sovereigns in preference to Krugerrands or gold bars.
Please see our CGT page.
We would advise any investors to check with their accountants, tax advisors, or tax inspectors.