Gold and silver can receive different UK tax treatment depending on the exact product, transaction and ownership structure. VAT and Capital Gains Tax should therefore be checked before buying physical bullion.
Tax rules can change. This is general information, not personalised tax advice.
Capital at risk. Tax treatment is only one part of the total cost picture.
Last reviewed: 12 August 2026 · Tax guidance checked: 12 August 2026
VAT
Qualifying investment gold has specific UK VAT rules under HMRC VAT Notice 701/21.
Silver
Do not assume silver receives the same VAT treatment as qualifying investment gold.
CGT
Capital Gains Tax depends on the asset, product form and individual circumstances.
Product matters
Coins, bars, funds and ETCs can have different tax treatment.
VAT
How VAT can apply to physical gold
Qualifying investment gold has a specific exemption regime under HMRC VAT Notice 701/21. This is not the same as saying all gold is VAT free.
Investment gold must meet HMRC's qualifying conditions — including fineness and product type where relevant.
Not every gold product automatically qualifies. Collectible, non-bullion or non-qualifying items can be treated differently.
HMRC also publishes guidance on investment gold coins (VAT Notice 701/21A). Always check the specific product against current official guidance.
Do not assume physical silver receives the same VAT treatment as qualifying investment gold.
Silver bullion is not covered by the investment-gold exemption simply because it is bought as an investment.
For many retail purchases of physical silver for delivery in the UK, VAT can apply at the standard rate. Exact treatment can still differ by product, dealer scheme, market, jurisdiction and storage structure.
Always check how VAT is shown for the exact transaction you are considering, and confirm against current official HMRC guidance.
How Capital Gains Tax can differ for certain gold coins
CGT treatment depends on the exact coin and the investor's circumstances. Do not write or assume that all gold coins are CGT free.
HMRC's Capital Gains Manual (CG78305) states that Sovereigns minted in 1837 and later years and Britannia gold coins are sterling currency and, like all sterling currency, are exempt from CGT because of TCGA 1992 s.21(1)(b).
Other gold coins — including many overseas bullion coins — may be chargeable assets. Non-sterling currency coins are not treated the same as sterling legal tender for this purpose.
VAT qualification as investment gold and CGT treatment are separate questions. A coin may qualify for one but not automatically for the other.
Do not assume silver coins receive the same CGT treatment as qualifying UK legal-tender gold coins.
Capital Gains Tax treatment can depend on the specific product, the nature of the disposal and your individual circumstances.
Where a UK legal-tender silver coin may have potentially relevant tax characteristics, confirm the exact product against current HMRC guidance rather than generalising from gold.
Do not assume silver coins or bars are exempt from CGT.
Tax rules can change. This is general information, not personalised tax advice.
GOLD BARS
Gold bars and Capital Gains Tax
Gold bars do not automatically receive the sterling-currency CGT treatment that applies to certain UK legal-tender gold coins under CG78305.
Bars are typically treated as chargeable assets for CGT purposes unless another specific exemption applies to your circumstances.
VAT treatment for bars also depends on whether the bar qualifies as investment gold under HMRC rules — check the specific product.
Compare premium, storage and tax outcomes for the exact bar you are considering rather than assuming coin-like treatment.
SILVER BARS
Silver bars and Capital Gains Tax
Silver bars are generally subject to normal CGT considerations on disposal. Do not imply a universal exemption.
Gains above your available annual exempt amount may be chargeable depending on your circumstances, reliefs and other gains in the tax year.
VAT on purchase can also affect total cost — check the transaction separately from CGT.
Confirm current HMRC guidance or seek qualified advice for your situation.
PRODUCT STRUCTURE
Physical bullion and investment securities are taxed differently
Physical metal
VAT considerations can apply on purchase for many silver products.
Qualifying investment gold may be VAT exempt where HMRC conditions are met.
CGT can apply on disposal depending on the product form and your circumstances.
Tax treatment is not the same as for shares or fund units.
Funds & ETCs
Exchange-traded commodities and qualifying investment funds are generally taxed as investment securities.
Income or gains may be treated differently from direct bullion ownership.
Product documents and HMRC guidance for the specific security type apply.
Wrapper treatment (ISA/SIPP) depends on whether the product qualifies for the wrapper.
Do not conflate security ownership with bullion tax treatment. Read the product factsheet and current GOV.UK guidance.
TAX WRAPPERS
ISA and SIPP considerations
Some qualifying investment securities — such as certain exchange-traded funds or ETCs — may be available inside an ISA or SIPP depending on the product and platform.
Physical bullion generally follows a different ownership and tax structure from securities held in wrappers.
Not all precious-metal products qualify for ISA or SIPP inclusion. Platform lists and HMRC ISA rules determine eligibility.
Wrapper tax advantages apply to qualifying investments inside the wrapper — they do not automatically extend to home-stored coins or bars.
Use this flow to identify which questions to ask before a purchase. It does not provide personalised tax calculations.
What are you buying?
Physical gold
Coin or bar?
Gold coin
Does it qualify as investment gold for VAT under HMRC VAT Notice 701/21 / 701/21A?
Is it sterling legal tender with relevant CGT treatment (e.g. post-1837 Sovereign, Britannia) per CG78305?
If overseas bullion, do not assume UK legal-tender CGT treatment.
Gold bar
Does the bar qualify as investment gold for VAT?
Bars do not automatically receive sterling-currency CGT treatment.
Confirm CGT position on disposal for your circumstances.
Physical silver
Coin or bar?
Silver coin
What VAT treatment applies to this exact transaction?
Do not assume investment-gold VAT rules apply.
What CGT treatment applies? Do not assume CGT-free treatment from gold coins.
Silver bar
What VAT treatment applies on purchase?
CGT on disposal — do not assume exemption.
Check current HMRC guidance for the product and transaction.
Fund / ETC
How is the security taxed outside a wrapper?
Does the product qualify for ISA or SIPP inclusion on your platform?
Read the KIID/KID or product factsheet.
Security tax treatment differs from direct bullion ownership.
Always check current HMRC and GOV.UK guidance for the exact product. This is general information, not personalised tax advice.
FAQ
Gold vs silver tax — common questions
Not all gold is VAT free. Qualifying investment gold has a specific exemption regime under HMRC VAT Notice 701/21. Products that do not meet the qualifying conditions can be treated differently. Check the exact product against current HMRC guidance.
No. Only gold meeting the UK definition of investment gold may qualify for VAT exemption. Collectible coins, non-qualifying products and items outside the regime can be subject to VAT.
For many retail physical-silver purchases for delivery in the UK, VAT can apply at the standard rate. Exact treatment can vary by product, dealer scheme and structure. Do not assume exemption. Check the transaction and current HMRC guidance.
No. Qualifying investment gold has a specific VAT exemption regime under HMRC VAT Notice 701/21. Silver is not covered by that exemption simply because it is bought as an investment.
Not all gold coins are CGT free. HMRC's Capital Gains Manual (CG78305) treats post-1837 Sovereigns and Britannia gold coins as sterling currency exempt from CGT under TCGA 1992 s.21(1)(b). Many other gold coins — especially non-sterling overseas bullion — can be chargeable assets. Check the exact coin and current rules.
HMRC states that Sovereigns minted in 1837 and later years are sterling currency and CGT-exempt like other sterling currency. Older or different products may be treated differently. This is not personalised tax advice.
HMRC's Capital Gains Manual (CG78305) treats Britannia gold coins as sterling currency and therefore CGT-exempt like other sterling currency. Always verify the exact product and current HMRC guidance.
Do not assume silver coins are CGT free. Capital Gains Tax treatment depends on the specific product, the disposal and your circumstances. Confirm against current HMRC guidance.
Gold bars do not automatically receive the sterling-currency CGT treatment that applies to certain UK legal-tender gold coins. Bars are generally chargeable assets for CGT purposes unless another specific rule applies to your circumstances.
Silver bars are generally subject to normal CGT considerations on disposal. Do not assume exemption. Gains above your available annual exempt amount may be chargeable depending on your circumstances.
Gold ETCs are typically taxed as investment securities rather than as physical bullion. Treatment can depend on the product structure, whether it is reporting or non-reporting, and whether it is held inside a tax wrapper. Read the product documents and current HMRC guidance.
Silver ETCs are generally taxed as investment securities. They do not follow the same VAT rules as retail physical silver purchases. Wrapper eligibility and charge treatment depend on the specific product and platform.
Some qualifying investment securities — such as certain precious-metal ETCs or funds — may be ISA-eligible depending on the product and platform. Physical bullion at home or in a dealer vault generally follows a different structure and is not the same as an ISA holding.
Physical gold coins or bars you store at home or in a vault are not ISA investments in the usual sense. Some gold-exposure products that qualify as ISA-eligible securities may be available through investment platforms — check the platform list and HMRC ISA rules.
Physical silver bullion you take delivery of is not the same as a qualifying ISA security. Some silver ETCs or funds may be available in ISAs if the product and platform allow it. Physical ownership and ISA holdings are different structures.
Yes. VAT, CGT and ISA rules can change with legislation and HMRC guidance updates. Always check current official sources before buying or selling.
Start with GOV.UK and HMRC manuals for VAT Notice 701/21, investment gold coins (701/21A), Capital Gains Manual CG78305 and ISA guidance. For personal situations, consider qualified tax advice.