What's the difference between the gold coins?

Once you've decided on coins, the next question is which coin. They all contain gold, but they're not interchangeable, the coin you pick affects three things: the premium you pay, how easily you can sell in small amounts, and, most importantly, whether you'll owe Capital Gains Tax when you sell.

The one division that matters most: UK vs foreign

Every gold coin falls into one of two camps, and it changes the tax entirely.

UK legal-tender coins are free of Capital Gains Tax. Because coins like the Britannia and the Sovereign are official UK currency, any profit you make on them is exempt from CGT for UK residents, regardless of how big the gain is. This is the single biggest reason UK buyers choose them.

Foreign coins are not. A Krugerrand, Maple Leaf or American Eagle is still perfectly good gold, but it isn't UK currency, so gains above your annual allowance (£3,000 in 2026/27) are taxable at 18% or 24%, exactly like a bar.

Every coin below is also VAT-free, as they all qualify as investment gold, so VAT isn't a differentiator here.

The coins, one by one

Gold Sovereign (UK), the flexible favourite. 22 carat, containing 0.2354 oz (about 7.3g) of fine gold, with a £1 face value. CGT-free and VAT-free. Because each coin is small, Sovereigns are wonderfully divisible, you can sell a few at a time rather than cashing in a whole ounce, and they're the most recognised, most easily traded gold coin in Britain. The trade-off: being small, they carry a higher premium per gram than a 1oz coin. Best for buyers who value flexibility and tax-free status over squeezing out the last fraction of metal.

Gold Britannia (UK), often the sweet spot. 24 carat (999.9 fine), available as a full 1oz coin (£100 face value) and in fractional sizes. CGT-free and VAT-free. The Britannia gives you the efficiency of a 1oz coin and the CGT exemption, which is why many consider it the best all-round choice: close to a bar on cost, but with the tax advantage a bar can't offer. Premium is a little above a plain bar, but usually below a Sovereign per gram.

Krugerrand (South Africa), cheap and global, but taxable. 22 carat, containing a full 1oz of fine gold. Typically one of the lowest-premium 1oz coins and among the most liquid in the world. The catch for UK buyers: it's not CGT-free. Great value if tax isn't a concern for you; less attractive if you expect a large taxable gain.

Canadian Maple Leaf (Canada), pure, but taxable. 24 carat (999.9), 1oz. Highly recognised and very pure. Like the Krugerrand, it's CGT-liable for UK residents. Being pure 24-carat gold, its surface marks more easily than a harder 22-carat coin, so condition matters more.

Others (Kangaroo, Philharmonic, American Eagle, etc.), all foreign, so all CGT-liable for UK buyers. Fine coins, but they don't offer the Britannia/Sovereign tax edge.

A quick word on carat (purity)

You'll see coins described as 22 carat (Sovereign, Krugerrand) or 24 carat (Britannia, Maple Leaf). This is about the alloy, not how much gold you're getting: a 1oz Krugerrand still contains a full ounce of gold, it's just mixed with a little copper, so the whole coin weighs slightly more and resists scratches better. A 24-carat coin is purer and softer. You pay for the gold content either way, so purity is mainly about durability and preference, not value.

At a glance

How to pick

If you're a UK buyer who might make a meaningful gain, the Britannia or Sovereign almost always makes sense, the CGT exemption is worth far more than the small premium difference. Choose the Sovereign if you want maximum flexibility to sell in small chunks; the Britannia if you want 1oz efficiency with the same tax break. Only reach for a Krugerrand or Maple Leaf if premium is your sole concern and tax genuinely won't affect you.