Best Gold Coins to Buy in the UK: A Practical Investment Guide
By Jan Skoyles
Feb 26, 2026
Introduction
For UK investors seeking physical gold, choosing the right bullion coin matters. The type of coin you buy affects tax treatment, liquidity, resale premiums, and long-term portfolio efficiency.
This guide focuses exclusively on investment-grade gold bullion coins available to UK buyers. It excludes numismatic or rare collectible coins, where value is driven by rarity rather than gold content.
For many UK investors, the Gold Britannia and Gold Sovereign are leading choices because they are legal tender under British law and are exempt from Capital Gains Tax (CGT).
Why Tax Treatment Matters
One of the most important considerations for UK investors is Capital Gains Tax.
CGT Exemption
UK legal tender gold coins including:
are exempt from Capital Gains Tax (CGT) for UK residents. This means that profits realised upon sale are not subject to CGT, regardless of the gain.
By contrast, gold bars and non-UK legal tender coins are subject to CGT above the annual allowance (currently £3,000).
This distinction can materially affect after-tax returns over the long term.
VAT Treatment
Investment-grade gold is VAT exempt in the UK. This applies to qualifying gold bars and bullion coins meeting minimum purity standards. Silver, by contrast, is generally subject to VAT in the UK.
Physical Ownership vs Paper Gold
Physical gold coins represent direct ownership of tangible metal. Unlike ETFs or futures contracts, you hold either:
- In your physical possession
- Allocated, segregated storage in your name
Physical ownership eliminates counterparty exposure associated with financial products, though investors must consider storage and insurance costs.
Professional vault storage with GoldCore is available in a range of locations including London, Dublin, Switzerland and Singapore. Fees typically range around 0.4–1% per annum depending on provider and value stored.
Top Gold Coins for UK Investors
1oz Gold Britannia
First issued in 1987 by The Royal Mint, the modern Britannia contains exactly 1 troy ounce of 999.9 fine gold (24-carat).
Key features:
- CGT exempt (UK legal tender)
- VAT exempt
- Government-backed weight and purity
- Widely recognised globally
- Enhanced security features introduced from 2021 (including latent images and micro-text)
The obverse features Queen Elizabeth II or King Charles III. The reverse depicts Britannia, a longstanding symbol of strength and stability.
The gold 1oz Britannia denomination is one of the most liquid retail bullion formats globally.
Gold Sovereign
The Sovereign is one of the world’s most historically recognised gold coins, originally introduced in 1489 and reissued in its modern form in 1817.
Specifications:
- Total weight: 7.98 grams
- Pure gold content: 7.322 grams (0.2354 troy ounces)
- Purity: 22-carat (916.7 fineness)
The alloy gives the coin durability while preserving its gold content.
Advantages:
- CGT exempt (UK legal tender)
- Highly liquid internationally
- Smaller size allows incremental buying and flexible selling
Sovereigns are often used by investors building positions gradually or seeking portability.
International Alternatives
Several international bullion coins are globally recognised and highly liquid, though they do not qualify for UK CGT exemption:
- Canadian Maple Leaf – 999.9 fine gold (24ct)
- American Gold Eagle – 22ct (91.67% gold), contains exactly 1 troy ounce of gold
- South African Krugerrand – 22ct (91.67% gold), first issued in 1967
- Australian Kangaroo – 999.9 fine gold
- Austrian Philharmonic- -0.9999 pure and was first minted by The Austrian Mint in Vienna in 1989.
These coins trade at competitive premiums and are widely accepted by dealers worldwide. However, UK investors should consider the CGT implications when comparing them to British legal tender coins.
Evaluating Gold Coins for Investment
When assessing gold bullion coins, consider:
Premium Over Spot
Bullion coins typically trade at a premium above the gold spot price to reflect minting, distribution, and dealer costs. Under normal market conditions:
- 1oz mainstream bullion coins often trade around 3–6% above spot
- Premiums fluctuate depending on demand and supply
Liquidity
Choose coins with strong dealer buy-back markets. Britannias, Sovereigns, Maple Leafs, and Krugerrands are widely traded internationally.
Authentication
Purchase from established dealers who verify authenticity and provide full documentation.
Storage
Consider professional vault storage for larger holdings to mitigate theft and insurance risk.
Comparison Overview
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Conclusion
For UK residents seeking physical gold exposure, Gold Britannias and Gold Sovereigns offer distinct tax advantages through Capital Gains Tax exemption, alongside global recognition and strong liquidity.
International alternatives such as the Maple Leaf and Krugerrand remain high-quality investment coins but do not share the UK tax benefit.
Ultimately, the best gold coin depends on:
- Your tax position
- Investment size
- Liquidity needs
- Storage preferences
Many experienced investors combine larger 1oz coins with smaller Sovereigns to balance efficiency and flexibility.
