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Gifting gold to a family member or friend can trigger UK tax obligations - but only in specific circumstances, and CGT-exempt coins like the Gold Sovereign or Britannia can often be gifted completely free of tax. The rules are different depending on what you’re giving, to whom, and whether you die within seven years of making the gift.
Short version: gifting a Gold Sovereign or Britannia triggers no CGT. Gifting a gold bar or foreign coin may. IHT considerations apply to all gifts above certain thresholds.
At a glance
| What you’re gifting | CGT on gift? | IHT on gift? |
|---|---|---|
| Gold Sovereign or Britannia | No - CGT-exempt coin | Only if total gifts exceed annual/NRB allowances |
| Gold bar or foreign coin | Yes - disposal at market value | Only if total gifts exceed allowances |
| Gifting to spouse / civil partner | No CGT (no-gain no-loss) | Exempt from IHT |
| Gifting to child | As above - depends on product | 7-year rule applies |
CGT when you gift gold
For CGT purposes, gifting gold is treated as a disposal at the current market value - the same as selling it. If the gold has increased in value since you bought it, that gain is potentially subject to CGT.
The exception is CGT-exempt coins. Gold Sovereigns and Gold Britannias are UK legal tender, so any gain from disposing of them - including giving them away - is exempt from CGT regardless of the profit. For these coins, gifting is clean. No tax, no reporting, no cap on the gain size.
For everything else - gold bars, Krugerrands, Maple Leafs, and other non-UK legal tender coins - gifting triggers a CGT calculation at market value. The gain is calculated as the market value at the time of the gift minus your original cost. If the gain exceeds the annual CGT allowance (£3,000 for 2026/27), tax is owed.
Exception: gifting to a spouse or civil partner
Transfers between spouses and civil partners are exempt from CGT under the “no-gain, no-loss” rule. The receiving spouse takes on your original cost base. No CGT arises on the transfer itself - though CGT may arise when they eventually sell, calculated from your original purchase price.
IHT when you gift gold
Gifting gold may also have IHT consequences, regardless of CGT status.
The seven-year rule: A gift that is not exempt from IHT starts a seven-year clock. If you die within seven years, the gift may be brought back into your estate for IHT purposes. The amount tapered: gifts made 3–4 years before death attract 80% of the IHT charge; 4–5 years, 60%; 5–6 years, 40%; 6–7 years, 20%; and after 7 years, nothing.
Annual gift exemption: Each person can give away £3,000 per tax year free of IHT entirely. This can be carried forward one year if unused. For gifting one or two Sovereigns - typically worth £600–1,000 each - this exemption often covers the whole transaction.
Small gifts exemption: Gifts of up to £250 per person per year are exempt. Multiple small gifts to different recipients fall under this.
Wedding gifts: There are specific exemptions for wedding gifts - £5,000 to a child, £2,500 to a grandchild or great-grandchild, £1,000 to anyone else.
Worked example: gifting a Sovereign
You bought a Full Sovereign for £700 five years ago. It is now worth £950. You gift it to your adult grandchild.
- CGT: Zero - the Sovereign is UK legal tender and CGT-exempt.
- IHT: The £950 gift counts against your annual £3,000 IHT gift allowance. If you haven’t used the allowance that year, it is fully covered with room to spare.
- Total tax owed: Nil.
Worked example: gifting a gold bar
You bought a 1oz gold bar for £1,800 two years ago. It is now worth £2,600. You give it to your son.
- CGT: The gain is £800. After the £3,000 annual allowance (assuming you haven’t used it elsewhere), no CGT is due in this case. If you had already used your allowance, CGT at 18% (basic rate) or 24% (higher rate) would apply to the £800 gain.
- IHT: The £2,600 gift starts the seven-year clock. If you die within seven years, it may be brought back into the estate.
Tax and regulation
CGT on gifting: Gifting non-exempt gold is a disposal at market value (TCGA 1992, Section 17). CGT may be due.
CGT-exempt coins: Gold Sovereigns and Britannias are UK legal tender under the Coinage Act 1971. Disposals of legal tender are exempt from CGT under TCGA 1992, Section 21(1)(b).
IHT and the seven-year rule: Potentially exempt transfers (IHTA 1984, Section 3A). Taper relief applies on gifts made 3–7 years before death.
Spousal transfer: No-gain no-loss rule applies. The recipient takes the donor’s original cost base (TCGA 1992, Section 58).
This guide contains factual information only and does not constitute tax advice. Individual circumstances vary - consider consulting a tax adviser for significant transactions.
How people usually decide
Most gold gifting within UK families involves Sovereigns or Britannias - a coin given at Christmas, a few coins passed down when someone clears a house. These trigger no CGT. If the gift falls within the £3,000 annual IHT exemption, which most single-coin gifts comfortably do, there’s no tax consideration at all.
The calculation gets more involved with bars, or when the donor has already used their CGT allowance, or when the gift is large enough that the seven-year IHT clock actually matters in the context of the estate. That’s when it’s worth getting proper advice rather than relying on a guide.
Frequently asked questions
Does gifting a Gold Sovereign to my child trigger CGT? No. The Gold Sovereign is UK legal tender and CGT-exempt. Gifting it is a disposal, but no CGT arises regardless of the gain. The Gold Britannia has the same exemption.
If I gift gold and die within seven years, does IHT apply? Possibly. Gifts that exceed annual exemptions start the seven-year IHT clock under potentially exempt transfer rules. If you die within seven years, the gift may be brought back into the estate - with taper relief applied if you survive at least three years after the gift.
Can I use my CGT allowance to gift a gold bar tax-free? Yes, if the gain is within the £3,000 annual exempt amount (2026/27). If you’ve already used your allowance, or the gain exceeds it, CGT would be due at the applicable rate.
Is gifting to my spouse tax-free? CGT: yes, under the no-gain no-loss rule. IHT: yes, spousal/civil partner gifts are fully exempt. The receiving spouse takes on your cost base for future CGT purposes.