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A UK limited company can buy gold. There is no legal prohibition on a company holding precious metals as an asset. However, the tax treatment is completely different from personal ownership - and in some ways significantly less favourable. Before buying gold through a company structure, it is worth understanding what those differences are.
This guide covers corporate gold ownership, the applicable tax rules, and when it might (and might not) make sense.
At a glance
| Personal ownership | Company ownership | |
|---|---|---|
| Tax on gains | CGT at 18–24% (or CGT-exempt for Sovereigns/Britannias) | Corporation tax at 25% on profits |
| Annual CGT allowance | £3,000 (2025/26) | None |
| CGT-exempt coins | Yes (Sovereigns, Britannias) | No - exemption is personal only |
| VAT on investment gold | Zero-rated | Zero-rated |
| VAT reclaim | N/A (not VAT-registered if personal) | Potentially claimable if VAT-registered |
| Balance sheet | N/A | Gold recorded as a fixed or current asset |
How corporation tax applies to gold
When a company sells gold at a profit, that profit is subject to corporation tax at 25% (the main rate for companies with profits over £250,000 as of 2024/25, with the small profits rate of 19% for profits below £50,000).
Unlike personal CGT, there is no annual allowance. Every pound of gain is taxable.
And the critical difference: the legal tender CGT exemption that makes Sovereigns and Britannias CGT-free for individuals does not apply to companies. TCGA 1992’s currency exemption operates at the individual level. A company buying Sovereigns will pay corporation tax on any gain when sold.
VAT considerations
Investment gold is zero-rated for VAT under HMRC’s Gold Scheme, regardless of whether the buyer is an individual or a company. A limited company buying investment-grade gold coins or bars pays no VAT.
However, if a company is VAT-registered, it may be able to reclaim input VAT on costs associated with the gold purchase (brokerage fees, vault storage charged at standard rate, professional advice). This is an accounting question and depends on the company’s specific activities and VAT status.
Balance sheet treatment
Gold held by a company must appear on the balance sheet. Depending on its intended use:
- Current asset: If the company intends to sell the gold within 12 months, or if gold is held for trading purposes.
- Fixed asset: If held for long-term investment.
UK GAAP (FRS 102) and IFRS have different rules for measuring assets. Gold held as an investment is typically measured at cost less impairment under FRS 102, or potentially at fair value through profit or loss under IFRS. The accounting treatment affects how gains and losses appear on the company’s profit and loss statement.
This is an area where professional accounting advice is worthwhile for any substantial holding.
When corporate gold ownership might make sense
Despite the less favourable tax treatment, there are situations where holding gold through a company structure has logic.
Existing corporate cash pile: Companies sitting on significant cash reserves - for example, owner-managed businesses that have retained profits - may consider gold as a store of value for those reserves. The tax on eventual gains may be acceptable compared to holding large cash balances that are eroded by inflation.
Asset protection: Gold held corporately can form part of a business’s asset base. Depending on the structure, this may offer some liability protection compared to personal holdings.
SSAS pension: A Small Self-Administered Scheme (SSAS) is a type of occupational pension often associated with owner-managed companies. A SSAS can potentially hold physical gold under certain structures. The rules are specific - consult a specialist pension administrator.
When it does not make sense
For most owner-managed businesses, buying gold personally (rather than through the company) is more tax-efficient:
- Personal Sovereigns and Britannias are CGT-free
- There is a £3,000 personal annual CGT allowance before tax applies to bars
- Spousal transfers can be used to double the effective CGT allowance
- The legal tender exemption is valuable and is lost in a corporate structure
If the goal is to hold gold as a personal investment, doing so personally rather than extracting company profits (and paying income tax on the extraction) to buy gold personally may also be more efficient - but this depends on individual circumstances.
Tax and regulation
Corporation tax: Gains on gold sold by a company are included in the company’s taxable profits and taxed at the applicable corporation tax rate.
CGT-exempt coins: The legal tender CGT exemption does not apply to companies. This is confirmed in HMRC guidance.
VAT: Investment gold is zero-rated regardless of the buyer.
AML: Companies buying gold are subject to the same Money Laundering Regulations as individuals. Dealers will require company identification (Companies House registration, beneficial ownership details) in addition to individual ID for directors.
This guide does not constitute tax or legal advice. Corporate tax is complex and the right structure depends on individual circumstances. Consult a qualified accountant before proceeding.
How people usually decide
Most owner-managed business owners who want gold exposure buy it personally rather than through the company. The CGT-free status of Sovereigns and Britannias is too valuable to give up.
The corporate route tends to suit specific situations: large idle cash reserves in a company where extraction would itself be taxed heavily, or structured pension vehicles like SSAS where gold is held within a tax-advantaged wrapper.
Frequently asked questions
Can a company hold Sovereigns and claim CGT exemption? No. The CGT exemption for legal tender currency operates at the individual level under TCGA 1992. A company buying Sovereigns will pay corporation tax on any gain.
Does a company pay VAT on gold purchases? No. Investment gold is zero-rated for VAT regardless of whether the buyer is an individual or a registered company.
Can I buy gold through my company and then take it out personally? Extracting assets from a company is a taxable event (dividend, salary, or benefit in kind depending on how it’s done). Taking gold out personally would trigger a tax charge at the point of extraction. This is generally less efficient than simply buying gold personally to begin with.
What is a SSAS and can it hold gold? A Small Self-Administered Scheme is an occupational pension for a small group of employees (often directors of an owner-managed company). Under certain structures, a SSAS can hold alternative assets including physical gold bars meeting the investment grade standard. It requires a specialist SSAS administrator and HMRC compliance. It is not a mainstream option but exists as a route for larger pension pots.