Royal Mint says Brits buying gold coins in droves to dodge tax hikes

Daily Record

3 days ago

The Royal Mint saw sales of gold, silver and platinum soar to record levels in the first quarter of the financial year, as Britons rushed to stash their cash in precious metals
Gold coin sales have more than doubled as Brits rush to protect their savings from potential tax increases. Data from the Royal Mint shows a dramatic rise in precious metals investment during the first quarter of the financial year, with gold, silver and platinum deals reaching unprecedented levels.
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Online bullion coin purchases soared by 115% compared to the same period last year, driven by concerns over possible capital gains tax changes. The buying frenzy has been triggered by gold reaching a record £2,500 per ounce in April – creating what the Mint described as "unprecedented engagement" from investors seeking tax-free returns.
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One buyer allegedly purchased gold coins in October 2024 and sold them in June this year, pocketing a £70,000 profit – completely exempt from Capital Gains Tax thanks to bullion's status as legal tender. Gold is a top choice for those looking to minimise tax bills.
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Gold can be an appealing investment for UK savers specifically due to its Capital Gains Tax (CGT) treatment - but this only applies to certain types of gold. British gold coins such as Sovereigns and Britannias are exempt from CGT because they are recognised as legal tender in the UK.
This means any profit made on their sale is entirely free from Capital Gains Tax, regardless of how much their value has risen. So, if you purchased £10,000 worth of Sovereigns and sold them years later for £80,000, you'd owe no CGT at all - even though your gain is £70,000.
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This is not the case for gold bars, foreign coins (like Krugerrands or American Eagles), or most forms of silver and platinum. There's no CGT threshold or cap for these exempt coins. Normally, people pay CGT if their total capital gains exceed £3,000 (2025/26 threshold), taxed at 10% or 20%, depending on income.
But with Sovereigns and Britannias, there's zero tax, regardless of gain or how wealthy you are. Significantly, there is no need to declare gains to HMRC for exempt coins.
Stuart O'Reilly, Market Insights Manager at the Royal Mint, said: "This quarter demonstrated a remarkable evolution in UK precious metals investing."
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We're seeing strategic behaviour from investors to rebalance portfolios and rotating into silver and platinum. "This quarter demonstrated a remarkable evolution in UK precious metals investing."
The fact that silver and platinum activity has surged alongside gold's rally shows UK investors are becoming increasingly aware of the value of other precious metals, with silver and platinum often following gold's lead during major rallies."
Overall, investor activity across the Mint's website jumped by 55% compared to the same period last year. Appetite for DigiGold, its VAT-free digital bullion product, soared – with digital silver sales skyrocketing 1,158% and platinum climbing 798% year-on-year.
The number of investors selling back to the Mint's vault also reached an all-time high, as customers sought to secure profits. However, gold coin purchases still exceeded sales by six to one – indicating sustained faith in the metal.
Silver also experienced a resurgence, rising above £27 an ounce in June – the first time it has hit that level since 2011. Sales of silver coins increased by 51% year-on-year, whilst platinum soared by 188 per cent.
The Mint revealed it was compelled to accept enormous quantities of bullion bars – including 400oz gold and 1,000oz silver bars – to satisfy demand and handle record levels of sellbacks. Despite a modest decline in prices since the spring peak, analysts suggest the fundamental factors driving demand remain robust – especially as investors prepare for potential tax increases under the new government.