Surge in coin buying driven by tax fears
UK investors are snapping up record numbers of gold coins in a bid to sidestep higher capital gains tax (CGT) rates and hedge against economic uncertainty, new figures reveal.
Sales of Royal Mint bullion coins soared by 115% in the first quarter of the 2025-26 financial year compared to the same period last year, according to the Mint. Online bullion transactions also hit an all-time high, while demand for bars and coins rose 17% year-on-year, the World Gold Council reported.
Capital gains tax the top concern
The main driver behind the rush is clear: tax. A survey by gold dealer Solomon Global of 14,000 customers found 42% cited tax mitigation as their primary reason for buying gold coins. A further 26% pointed to “wealth protection”.
Bullion coins produced by the Royal Mint, including gold, silver and platinum Britannias, are exempt from CGT for UK residents because they are classed as legal tender. In contrast, CGT applies to most other precious metal assets, including non-Mint coins and all bullion bars.
Louise Street, senior analyst at the World Gold Council, said CGT changes announced in the Autumn Budget had “added to the attractiveness of gold” for investors seeking tax efficiency.
Record gold prices add momentum
Gold’s historic safe-haven status has further boosted interest. Prices have surged to record highs this year – hitting around $3,350 per troy ounce – driven by geopolitical tensions, inflation fears and concerns about the impact of US tariffs on global trade.
The metal is increasingly seen as a store of value at a time when the purchasing power of cash is under pressure. Inflation and repeated changes to tax allowances have heightened demand from savers looking to preserve their wealth.
The CGT-free allowance has shrunk dramatically – from £12,300 in 2022-23 to just £3,000 this tax year. Labour Chancellor Rachel Reeves has also raised CGT rates to between 18% and 32%, up from 10% to 28% under the previous Conservative administration.
ETFs remain popular for some
Despite the enthusiasm for physical gold, some wealth managers remain cautious about coins. Rob Burgeman of RBC Brewin Dolphin said exchange-traded funds (ETFs) offer a faster and more liquid route to gold exposure.
“It is the quickest and most efficient way to get exposure to gold,” he noted. “Even at times of market stress, ETFs can be sold with minimal delay.”
Oliver Jones, head of asset allocation at Rathbones, agreed, highlighting that ETFs avoid the insurance, transaction, and storage costs associated with coins – even if they don’t come with the same CGT perks.
Still, for thousands of retail investors, the appeal of tangible, tax-free gold has never been greater. With tax pressures rising and market volatility continuing, gold coins may remain the safe bet in uncertain times.
