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A Gold Britannia is a 999.9 fine (24-carat) gold coin produced by the Royal Mint, containing one troy ounce of fine gold. It is UK legal tender with a £100 face value under the Coinage Act 1971, which makes any profit from selling one exempt from capital gains tax.
For UK investors, the Britannia is the largest of the two main CGT-free bullion coins, alongside the Sovereign. It offers slightly lower premiums per ounce than fractional Sovereigns, higher purity, and strong international recognition - at the cost of a higher entry price per coin.
At a glance
| 1 oz Britannia | 1/2 oz Britannia | 1/4 oz Britannia | 1/10 oz Britannia | |
|---|---|---|---|---|
| Gold content | 1.000 oz | 0.500 oz | 0.250 oz | 0.100 oz |
| Face value | £100 | £50 | £25 | £10 |
| Purity | 999.9 | 999.9 | 999.9 | 999.9 |
| CGT-free | Yes | Yes | Yes | Yes |
| VAT-free | Yes | Yes | Yes | Yes |
| Typical premium | 4–8% | 7–12% | 9–15% | 14–22% |
Premium data based on major UK dealers, March 2026. Fluctuates with supply.
What is a Gold Britannia?
The modern bullion Britannia was introduced in 1987. Early issues were 916.7 fine (22 carat); purity was upgraded to 999.9 fine in 2013. Since 2013, each coin contains exactly one troy ounce of fine gold - not one ounce of alloy with a gold fraction, but one ounce of 999.9 gold.
The obverse shows the reigning monarch. The reverse shows Britannia - the classical figure representing Britain - in a design updated periodically. The current reverse has been in use since 2023.
Post-2013 Britannias include a latent security image visible when the coin is tilted. This is a basic authenticity indicator.
Types of Gold Britannia
1. One-ounce Britannia
What it is: The main bullion coin. One full troy ounce of 999.9 gold, 32.69mm diameter.
Why people choose it: The lowest percentage premium of the Britannia range. Widely recognised by dealers globally, which can ease resale if you’re outside the UK. Straightforward to price - it tracks the gold spot price almost exactly.
What to be aware of: Higher entry price than a Sovereign (~£2,600–2,800 depending on gold price). If you want to build a position gradually, Sovereigns offer more flexibility in smaller increments.
Who this suits: Investors making larger single purchases, typically above £5,000, who want CGT protection and lower percentage premiums.
2. Half-ounce Britannia
What it is: 0.5 troy oz of 999.9 gold.
Why people choose it: Bridges the gap between a full ounce and a Sovereign in terms of entry price. Same CGT and VAT treatment. Higher purity than a Sovereign at a similar outlay.
What to be aware of: Premium percentage rises as size falls. For the same money, two Sovereigns often offer marginally better value than one half-ounce Britannia, depending on dealer pricing.
Who this suits: Buyers in the £1,200–1,500 range who specifically want Britannia’s 24-carat purity.
3. Quarter-ounce and tenth-ounce Britannias
What they are: Fractional coins at 0.25 oz and 0.1 oz. Same purity and CGT status as the full ounce.
Why people choose them: Lower absolute cost. Sometimes bought as gifts or to round out a position.
What to be aware of: Premium as a percentage climbs steeply. A 1/10oz Britannia can cost 18–22% above gold content value. For regular accumulation at smaller amounts, Sovereigns typically offer better economics.
Who this suits: Gift buyers. Investors adding small amounts who specifically want the Britannia name or 999.9 purity.
Security features
Post-2013 Britannias include a latent image - a padlock and denomination visible when the coin is tilted under light. This is visible to the naked eye.
If a Britannia doesn’t display this feature when tilted, that is a reason to verify the coin further by weight (31.21g for 1 oz), diameter (32.69mm), and ideally XRF testing. Any major UK bullion dealer can perform this check.
Pre-2013 vs post-2013 Britannias
Pre-2013 Britannias were 916.7 fine (22 carat). They weigh 33.93g with a gold content of 31.10g (1 troy oz of gold). Post-2013 Britannias are 999.9 fine and weigh 31.21g, with the same 1 troy oz of fine gold.
Both remain CGT-free and VAT-free as UK legal tender. When comparing prices across dealers, check whether they’re quoting pre- or post-2013 coins - the difference is meaningful for purity.
Britannia vs Sovereign: the practical comparison
| 1 oz Britannia | Full Sovereign | |
|---|---|---|
| Gold content | 1.000 oz | 0.2354 oz |
| Purity | 999.9 (24ct) | 916.7 (22ct) |
| Entry price | ~£2,750 | ~£640 |
| Premium over spot | 4–8% | 3–7% |
| CGT-free | Yes | Yes |
| VAT-free | Yes | Yes |
| Divisibility | Low | High |
| International recognition | High | Medium |
The practical question is how much you’re buying at one time. Larger single purchases suit the Britannia’s lower percentage premium. Regular smaller purchases suit the Sovereign’s divisibility - you’re not forced to commit £2,750 in one go.
Tax and regulation
CGT: Gold Britannias are UK legal tender. Gains from disposing of sterling legal tender currency are exempt from capital gains tax under TCGA 1992, Section 21(1)(b). The exemption applies to all denominations and to both new and pre-owned coins.
VAT: Investment gold is zero-rated under HMRC’s Gold Scheme. No VAT on purchase.
SIPP eligibility: The Britannia’s 999.9 purity comfortably exceeds HMRC’s 99.5% threshold for investment gold held in a SIPP. Check with your SIPP provider, as not all allow physical gold custody.
IHT: CGT-exempt does not mean IHT-exempt. Britannias form part of the estate on death and are subject to inheritance tax at full market value above the applicable threshold.
AML: Dealers are required to verify identity under the Money Laundering Regulations 2017. Expect photo ID and proof of address checks.
How people usually decide
The Sovereign vs Britannia decision most often comes down to amount. Buyers putting in less than £2,000 at a time tend to choose Sovereigns - the divisibility matters, and the entry price is manageable. Above £5,000 in a single purchase, Britannias are usually more efficient on percentage premium. Use the best-deal tool to compare current prices across dealers.
Buyers who mention purity often care about this for preference reasons rather than financial ones. For most UK investors, the CGT and VAT treatment matters far more than whether the coin is 22ct or 24ct.
Frequently asked questions
Are Gold Britannias exempt from capital gains tax? Yes. Gold Britannias are UK legal tender under the Coinage Act 1971. Gains from disposing of sterling legal tender are exempt from CGT under TCGA 1992, Section 21(1)(b). This applies to all Britannia sizes and to both new and second-hand coins.
Do I pay VAT on a Gold Britannia? No. Investment gold, including Britannias, is zero-rated for VAT in the UK under HMRC’s Gold Scheme. This applies regardless of whether you’re buying from a dealer online or in person.
Can I hold a Britannia in a SIPP? In principle yes - the 999.9 purity exceeds HMRC’s 99.5% threshold. In practice, few SIPP providers offer physical gold custody. Check with your provider before assuming this is possible.
How do I verify a Britannia is genuine? Post-2013 coins have a latent security image (padlock visible when tilted). Check weight: 31.21g for 1 oz, diameter 32.69mm, thickness 2.81mm. If in doubt, any major bullion dealer can verify by XRF test.
Is the pre-2013 22-carat Britannia still worth buying? Yes, as a bullion coin. It contains the same 1 troy oz of fine gold. The purity difference from 916.7 to 999.9 is relevant if you care about alloy composition, not if you’re buying for gold content value.