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Foreign gold coins - including the South African Krugerrand, Canadian Maple Leaf, and Austrian Philharmonic - are legal to buy and sell in the UK, but they are not UK legal tender. That means gains from selling them are subject to capital gains tax, unlike the Gold Sovereign or Gold Britannia.
This guide explains the tax position, premium comparison, and the circumstances under which a foreign coin might still make sense for a UK buyer.
At a glance
| Coin | Country | Fine gold (1oz) | Purity | CGT-free in UK | VAT-free |
|---|---|---|---|---|---|
| Krugerrand | South Africa | 1.000oz | 916.7 (22ct) | No | Yes |
| Canadian Maple Leaf | Canada | 1.000oz | 999.9 (24ct) | No | Yes |
| Austrian Philharmonic | Austria | 1.000oz | 999.9 (24ct) | No | Yes |
| American Gold Eagle | USA | 1.000oz | 916.7 (22ct) | No | Yes |
| Gold Britannia (UK) | UK | 1.000oz | 999.9 (24ct) | Yes | Yes |
| Gold Sovereign (UK) | UK | 0.2354oz | 916.7 (22ct) | Yes | Yes |
1. The Krugerrand
What is it?
The world’s best-selling gold coin by volume, introduced in South Africa in 1967. It contains exactly 1oz of fine gold in a 22-carat alloy - the same specification as the Gold Sovereign - with copper giving it a warm, slightly reddish tone that distinguishes it immediately from 24-carat coins.
Why people buy it
The Krugerrand trades at some of the lowest premiums over spot of any 1oz gold coin globally - often 2–4% for secondary market examples. Its enormous liquidity means dealers worldwide will buy and sell it without hesitation.
What to be aware of
It is not UK legal tender, so CGT applies to any gain on sale. For UK buyers holding a meaningful position, that can significantly affect after-tax returns compared to a Britannia at a slightly higher premium.
Who this suits
UK investors who are within their annual CGT allowance (£3,000 in 2026/27), hold gold inside a tax wrapper (ISA or SIPP - though physical coins cannot go in those), or plan to hold until death (when the asset passes at market value rather than original cost for IHT purposes). Also suits buyers who want maximum global liquidity above all else.
2. The Canadian Maple Leaf
What is it?
Introduced in 1979, the Maple Leaf is a 999.9 fine (24-carat) 1oz coin issued by the Royal Canadian Mint. It was the first widely available 24-carat gold coin and remains one of the most traded globally.
Why people buy it
High purity, tight spreads, and global brand recognition strong enough that dealers worldwide take it without question. Recent issues include a micro-engraved security feature and radial lines to combat counterfeiting - a response to the sophisticated tungsten-cored fakes that circulated in the early 2010s.
What to be aware of
Like all non-UK legal tender coins, gains are subject to CGT in the UK. The premium over spot for new Maple Leafs is typically 3–5%, which is comparable to a Britannia - but the Britannia gets CGT-free treatment for the same outlay.
Who this suits
Similar to the Krugerrand - buyers who are not concerned about CGT exposure, or who are buying in volumes where the global liquidity premium is worth paying.
3. The Austrian Philharmonic
What is it?
Launched in 1989 by the Austrian Mint, the Philharmonic is 999.9 fine, 1oz, denominated in Euros (€100). It is one of the most popular gold coins in continental Europe by volume - not far behind the Krugerrand globally.
Why people buy it
Premiums are consistently tight - often 2.5–4% on secondary market - and European dealer networks carry it widely. For buyers with connections in Germany, Austria, or Switzerland, that liquidity is genuinely useful.
What to be aware of
Not UK legal tender. CGT applies. The Euro denomination means the coin’s nominal face value fluctuates against sterling, though this has no practical impact on its gold content or GBP buyback price.
Who this suits
Buyers with strong European connections or who may wish to sell in continental European markets. Otherwise, the tax disadvantage for UK holders is the same as for other foreign coins.
The CGT problem - worked example
Suppose you buy £10,000 of gold in Krugerrands and the gold price doubles. Your gain is £10,000. At CGT rates of 18% (basic rate) or 24% (higher rate) after the £3,000 annual allowance, the tax bill is £1,260–£1,680.
The same position in Gold Britannias would have zero CGT. The Britannia premium is typically 1–2 percentage points higher than the Krugerrand, which on a £10,000 purchase is £100–£200. The CGT saving easily exceeds the premium difference at any meaningful gain.
The crossover point - where a foreign coin’s lower premium outweighs the CGT disadvantage - is difficult to reach in practice for most UK investors holding outside an ISA wrapper.
When foreign coins do make sense for UK buyers
| Situation | Relevant coin |
|---|---|
| CGT annual allowance fully available | Any - the tax difference disappears if the gain is within £3,000 |
| Gold held in a SIPP or ISA (ETF only - not physical coins) | N/A - physical coins cannot go in tax wrappers |
| Non-UK resident buyer | Foreign coins may be locally liquid in your home market |
| Very large position, global mobility planned | Krugerrand for maximum international dealer acceptance |
| Buying specifically for continental European resale | Philharmonic |
Tax and regulation
CGT: Foreign gold coins are not UK legal tender. Any gain on sale is a taxable capital gain. The annual exempt amount (£3,000 in 2026/27) applies, after which gains are taxed at 18% (basic rate taxpayer) or 24% (higher rate taxpayer).
VAT: All investment gold coins meeting the 900/1000 minimum fineness standard are VAT-exempt at purchase, regardless of country of origin. No VAT on Krugerrands, Maple Leafs, or Philharmonics.
Reporting: If total proceeds from selling gold exceed four times the annual exempt amount in a tax year, or if you make a gain above the allowance, you must report to HMRC via Self Assessment.
This guide contains factual information only and does not constitute financial or tax advice.
How people usually decide
Most UK buyers who understand the tax position choose Gold Sovereigns or Britannias. The CGT exemption is too valuable to pass up without a specific reason.
Foreign coins occasionally make sense for buyers who are within their CGT allowance, who have inherited foreign gold coins and are considering whether to keep or sell them, or who have international connections and want maximum global liquidity.
The Krugerrand’s lower premium and global recognition make it the most common foreign coin held by UK investors - but for most buyers, it is still second choice to a Sovereign or Britannia once the CGT position is understood.
Frequently asked questions
Is a Krugerrand CGT-free in the UK? No. The Krugerrand is South African legal tender but not UK legal tender. CGT applies to any gain on sale. Only coins that are UK legal tender - principally the Gold Sovereign and Gold Britannia - are CGT-exempt.
Is a Krugerrand VAT-free? Yes. Investment gold coins meeting the minimum fineness standard are VAT-exempt in the UK regardless of country of origin.
Can I buy foreign gold coins from UK dealers? Yes. Most UK bullion dealers stock Krugerrands and Maple Leafs routinely. Philharmonics and American Eagles are less consistently available but can be sourced.
If I already own Krugerrands, should I sell and switch to Britannias? Selling the Krugerrands would itself trigger CGT on any gain since purchase. Whether it is worth the switch depends on the size of the existing gain, your CGT position in the current tax year, and the expected future gain. No general answer applies - this is a question for a tax adviser if the sums are significant.