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What does the exempt CGT status mean?
Why buy CGT-exempt products?
The Half Sovereign has been a mainstay of British coinage for more than two centuries, balancing gold content, affordability, and historical charm. Struck by The Royal Mint to the same exacting standards since 1817, each coin contains 3.99 grams of 22 carat gold (3.66g fine) and measures 19.30mm in diameter, precisely half the weight of a full Sovereign.
From an investment perspective, the Half Sovereign's fractional size makes it highly versatile. Investors can add to or sell their holdings in smaller steps. The denomination's status as UK legal tender also means it is exempt from Capital Gains Tax, and as investment gold, it is VAT-free in the UK.
A Coin with Global Reach
Half Sovereigns have travelled far beyond Britain's shores. In the 19th and early 20th centuries, they were produced not only in London but also at branch mints in Australia and South Africa, supporting the needs of global trade. Their consistent gold content and recognisable designs, whether the celebrated St George and the Dragon or the earlier "shield back", ensured they were trusted worldwide.
Although no longer struck for everyday circulation after the 1920s, the Half Sovereign remains popular in bullion and proof form. It has survived political change, fluctuating gold markets, and evolving minting technology, yet its weight, fineness, and dimensions remain unchanged.
Design Evolution
Over the decades, Half Sovereigns have featured a variety of obverse portraits, from George IV to the present-day King Charles III. The reverse is most often Benedetto Pistrucci's dynamic St George motif, but Victorian shield designs, jubilee portraits, and other variations also appear in the series. This blend of consistency and variety adds to the denomination's appeal for both investors and casual collectors.
Your questions answered
We've compiled a list of our most frequently asked questions. If there's something we haven't covered, please call us & we'll be happy to help. Read all FAQs.
As gold bullion is exempt from UK VAT, there are no applicable taxes at the point of purchase.
However, investors should note that gold bars are liable for Capital Gains Tax at the point of sale, if you exceed your capital gains threshold within your tax year and you make a profit on the sale.
As we're not financial advisors, we can't offer you advice. However, we can give you some facts surrounding gold bar investment.
When investing in gold bullion there are two primary choices:
- investing in gold bars
- investing in gold coins
Potential investors must always remember that the sale of gold bars are subject to Capital Gains Tax (if you make a profit on their sale and you go over your annual CGT threshold).
The key difference wth UK issued gold coins (primarily Sovereigns and Britannias) is these coins are exempt from Capital Gains Tax.
Therefore, if you're a UK resident, whilst the margin you pay when buying a gold bar may be lower, you might be better off investing in UK issued gold coins.