Investors bought Sovereigns and Britannias in the weeks before the Budget, in case capital gains tax went up. In the end the headline rates stayed where they were.
Chancellor John Healey's Budget on 28 October 2026 left the main capital gains tax rates unchanged at 18% and 24%. The changes were a new 10% Founders' Relief and a cut in the Business Asset Disposal Relief lifetime limit to £500,000, both from 6 April 2027. Before the Budget, the Telegraph reported strong buying of gold and silver bullion.
What the Budget changed
The headline rates of capital gains tax were left alone in the Budget published by HM Treasury on 28 October 2026, despite weeks of speculation that they were a likely target, Professional Adviser reported. The two changes to the tax that were announced both take effect from 6 April 2027. A new Founders' Relief will apply a 10% rate to up to £10 million of lifetime gains for qualifying founders and significant early investors in high-growth companies, and the lifetime limit for Business Asset Disposal Relief will fall from £1 million to £500,000, according to summaries by the accountants Saffery and by Professional Adviser. The measures still have to pass through Parliament in the Finance Bill.
The rush before the Budget
In the run-up, the Telegraph reported that investors were buying gold and silver ahead of the Budget. Citing The Royal Mint, it said revenue from physical silver was up 295% in the first nine months of 2026 on the same period of 2025, and that purchases of gold bullion coins rose 21% in the three months to the end of September compared with the previous quarter. The bullion dealer Solomon Global told the paper that more people were asking how gold is taxed and what that means for the form of bullion they choose.
Why coins and bars are taxed differently
The reason is in the law rather than the Budget. Under section 21 of the Taxation of Chargeable Gains Act 1992, currency counts as an asset for capital gains tax, with the exception of sterling. UK legal-tender coins such as the gold Sovereign and the Britannia are sterling currency, so an individual who sells them at a gain does not pay capital gains tax on it. Gold bars, and gold coins that are not UK legal tender, are ordinary assets, and gains on them can be taxed. None of this changed on 28 October. Dealers who trade as a business are taxed differently, and anyone with a specific question should check HMRC's guidance or speak to a tax adviser. Our guide do you pay tax when you sell gold in the UK covers the main rules in plain English.
And the Federal Reserve
On the same day, the US Federal Reserve held its target range at 3.75% to 4% by 10 votes to 2. The two dissenters, Lisa Cook and Beth Hammack, wanted to raise rates by a quarter of a point.
Selling gold coins
What a coin is worth to a buyer depends on more than its gold. Date, mint, condition and scarcity all count, and some Sovereigns sell for well above their metal because collectors want them. If you have coins to sell, see how to sell gold Sovereign coins with us, or read is now a good time to sell gold. Every coin is different: send us a few photos and we will tell you what yours is worth, free and with no obligation.
Looking to buy or sell? Get in touch
We buy and sell antique and vintage jewellery, watches, silver and collectables, with free valuations and free insured collection.
About Mozeris Fine Antiques
Mozeris Fine Antiques is a dealer in fine jewellery, watches and silver, with offices in Mayfair, London, and Braintree, Essex. We buy and sell, and offer free valuations. Visits are by appointment.
- HM Treasury: Budget 2026 document (28 Oct 2026)
- Professional Adviser: Budget 26: CGT headline rates untouched following speculation (28 Oct 2026)
- Saffery: Autumn Budget 2026: key tax changes (28 Oct 2026)
- The Telegraph: Investors rush to buy gold ahead of Budget
- Solomon Global on the Telegraph report
- Taxation of Chargeable Gains Act 1992, section 21
- Federal Reserve: FOMC statement (28 Oct 2026)
Facts as published by HM Treasury, the Federal Reserve, Professional Adviser, Saffery and the Telegraph. This is news, not tax advice. Mozeris Fine Antiques is not connected with The Royal Mint or anyone named. No photograph is used because no licensed image was available.
