As a general rule of thumb if an individual resident in the UK made profits exceeding
£6,000 on gold in a single tax year they have a self-declared liability of 20% on profits
above the £6,000 allowance. This is called capital gains tax.
For example, if an individual makes a £20,000 investment and this increases by 10%
the following year to £22,000 then the profit is approximately £2,000. This is
within the £6,000 allowance and so no capital gains tax is paid.
For larger investments e.g. over £50,000, users often arrange to sell some of their bullion
each year but ensure that any profit they make stays within their allowance. Therefore
also not having to pay any capital gains tax.
(Please note, capital gains tax varies slightly between different locations and an individual’s
financial circumstances, so the above is just a guide).
