The UK tax year ends on 5 April, which makes the last few weeks of March and the early days of April relevant for any coin seller who isn't dealing exclusively in tax-exempt material. If you've been disposing of foreign coins, banknotes, tokens, or non-legal-tender medals during the year, the timing of those sales can move you into or out of capital gains liability depending on what else you've realised in the same tax year.
This is genuinely complicated territory and I'm not going to pretend a blog post substitutes for talking to your accountant. What I can do is explain how the rules apply specifically to coin sellers, why the date matters, and which categories sit in which bucket. Take this as the lay of the land, then go and check your specifics with someone qualified.
Important caveat: I'm a coin collector, not a tax adviser. Nothing here is financial or tax advice. Tax rules change, your circumstances are unique, and HMRC has the final word. If meaningful money is at stake, get professional input before you act. The HMRC website has the authoritative guidance.
Which UK coins are exempt from capital gains tax
The single most important distinction: British legal-tender coins are exempt from capital gains tax. Sovereigns, half-sovereigns, Britannias, decimal commemoratives with a face value, pre-decimal pre-1971 currency that was legal tender at issue — all of it is CGT-exempt as personal possessions in the form of legal-tender currency.
The full breakdown is in the CGT-exempt coins UK guide, but in plain English:
- Sovereigns and half-sovereigns of all reigns: exempt.
- Britannias (gold and silver, all denominations): exempt.
- Decimal commemoratives issued by the Royal Mint with a face value (the £5, £2, 50p, etc.): exempt.
- Pre-decimal British coinage that was legal tender at the time of issue: exempt. This covers pennies, shillings, florins, half-crowns, crowns, and sovereigns going back centuries.
If you're selling these coins at a profit, you don't have a capital gains event to worry about. The face value is the key — HMRC treats them as currency, not as collectibles.
Which sales are not exempt
The categories that are subject to capital gains tax when sold for a profit:
- Foreign coins. US gold eagles, French Napoleons, German marks, Krugerrands — none of these are UK legal tender and none of them are exempt. The sovereign vs Krugerrand guide goes into the practical implications of this.
- Banknotes. Including British banknotes, oddly enough — they're treated differently from coins for CGT purposes.
- Tokens. Trade tokens, conder tokens, communion tokens, and the various commercial tokens that aren't government-issued legal tender.
- Medals and medallions. Including unofficial commemorative pieces, military medals (with caveats), and "coin-like" objects that aren't actually legal tender.
- Bullion bars and rounds. Anything without a face value isn't exempt, even if it's pure gold or silver. Note: the Royal Mint Britannia coin is exempt because it's legal tender. A 1oz gold bar from the same Royal Mint is not.
If your selling activity in the tax year has included material from these categories at a profit, you may have a CGT calculation to do.
The annual exempt amount
Even on non-exempt sales, you only owe CGT on gains above the annual exempt amount. The exempt amount has been reduced significantly in recent years — it was £12,300 a few years ago and is now meaningfully lower. Check the current figure on HMRC's website, because it changes more often than I can keep up with in a blog post.
The way it works: you total your gains across all CGT-eligible disposals in the tax year, deduct your costs, deduct the annual exempt amount, and pay CGT on what's left. The rate depends on your income tax band (basic-rate or higher-rate).
The £6,000 / £3,000 / £3,000 trail that catches a lot of casual sellers is the chattels rule for individual non-exempt items: a single chattel (a single token, medal, or coin lot) sold for £6,000 or less is exempt from CGT regardless of gain. Above £6,000 the gain is calculated normally. There are also special rules where the loss on a chattel sold under £6,000 is restricted. This stuff is fiddly. If you're selling individual items in this range at a profit, talk to an accountant.
Why the 5 April date matters
The UK tax year runs from 6 April to the following 5 April. Two practical implications:
- Sales on or before 5 April fall in the current tax year. You'll declare them on the Self Assessment due in January 2028 for the 2026/27 tax year.
- Sales on or after 6 April fall in the new tax year. You'll declare them on the Self Assessment due in January 2029.
If you've already used your annual exempt amount for 2026/27 and you're sitting on additional non-exempt material at a profit, deferring the sale until after 6 April moves the gain into a fresh exempt amount. Conversely, if you have unused exempt amount this tax year, completing a sale before 5 April uses it.
Two things to be careful about:
- Date of disposal is when you commit to sell, not when money clears. For an auction lot, it's typically the hammer date, not the settlement date. For a private sale, it's the date of contract or transfer. Ask your accountant about your specific situation.
- You can't artificially split sales to claim multiple annual exempt amounts. HMRC has anti-fragmentation rules, particularly around connected sets and sales to connected persons.
Practical record-keeping
Whether or not you end up owing tax, keeping good records of your coin transactions saves a lot of pain at year-end. A few habits that work:
- Log purchase price and date for every non-exempt item. The cost basis matters for calculating gain.
- Keep auction invoices and dealer receipts. HMRC accepts these as evidence of cost and proceeds.
- Note the disposal date and channel for every sale. Auction date, eBay sold date, dealer purchase date.
- Track related costs. Auction commission, postage, insurance, and grading fees can typically be deducted from the gain.
The where to sell rare coins UK guide covers the various selling channels — each has slightly different paperwork.
What about inherited collections?
A common spring scenario: someone has inherited a coin collection and is partway through liquidating it. The CGT treatment of inherited material is different from material you bought yourself. The cost basis is generally the probate valuation, not the original purchase price. For practical guidance on the valuation step, the inherited coin collection guide walks through the process.
If you're dealing with significant value, get professional probate and tax advice. The numbers usually justify it.
Self Assessment basics for coin sellers
If you have CGT to declare, it goes on your Self Assessment return — specifically the Capital Gains Summary pages (SA108). You file by 31 January following the end of the tax year and pay any CGT due by the same date.
If you don't normally file Self Assessment but have a CGT liability, you need to register with HMRC. There's also a real-time CGT reporting service for property, but for coins the Self Assessment route is standard.
Final thought, with the caveat repeated
The vast majority of UK collectors selling sovereigns, Britannias, and Royal Mint commemoratives have nothing to worry about — it's all CGT-exempt and the timing of sales doesn't matter for tax purposes. If your selling activity has included foreign coins, tokens, banknotes, or significant non-exempt material at a profit, then the spring window is the natural time to think about it.
And the caveat once more, with feeling: this is not tax advice. Talk to your accountant. Check the HMRC guidance directly. Your situation is unique. I'm just a coin collector who has read the rules carefully because I had to.
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