Solomon Global: Capital Gains Tax Hike Boosts Demand for Tax-Efficient Gold

The gold spot price remains on an upward trajectory this year. Currently trading well above $3300, Citi is the latest major financial institution to raise its price forecast ($3,500 per ounce over the next three months, up from $3,300 in June). However, in 2025, it’s not just about gold’s growth potential, historical significance or its key role in wealth protection, portfolio diversification or as an inflation hedge that’s drawing investors; it’s gold’s tax efficiency.

Solomon Global is noticing an increasing number of people considering gold as an investment due to the tax benefits it affords. We have seen a marked increase in inquiries, rising 72% from H2 2024 to H1 2025 as gold becomes an increasingly attractive option for those looking to grow their wealth in a tax-efficient way.

Tax Benefits of Gold is Making it Increasingly Popular Amongst Investors, Says Solomon Global

To gain clearer insight into investor objectives and monitor investment trends, Solomon Global asks website registrants to select the main reason they are considering gold. The latest data, based on the answers from over 14,000 respondents, reveals that in the first half of 2025, 41.89% identified gold’s tax-free status as their primary motivation for exploring gold in 2025, up from 37.51% in the second half of 2024. The most recent rise is likely attributable to investors responding to tighter Capital Gains Tax rules imposed at last year’s October Budget. Chancellor Rachel Reeves announced increases in both the lower rate of CGT (from 10% to 18%) and the higher rate of CGT (from 20% to 24%), which took effect immediately.

Other drivers remain consistent with gold’s traditional appeal: 26.42% of respondents were motivated by ‘wealth protection’, while ‘annual growth’ accounted for 25.80%. The remaining 5.89% cited ‘inflation hedging’ as their primary reason.

Solomon Global – Gold Key Findings:

• In 2025, 41.89% of respondents cited gold’s ‘tax-free’ status as their top reason for considering the asset
• ‘Wealth protection’ was the second biggest motivator at 26.42%
• 25.8% of respondents said ‘annual growth’ was the key driver in H1 2025
• Gold’s role as an ‘inflation hedge’ remained consistent, with 5.89% citing it as the main reason in H1 of 2025 versus 5.72% in H2 of 2024

No VAT on Investment Gold, No CGT on Gold Coins From the Royal Mint

In a higher-tax environment, the advantages of physical gold are particularly striking. In the UK, investment gold is exempt from VAT. ‘Investment gold’ is defined as per HMRC Notice 701/21 as either:

(a) gold of a purity not less than 995 thousandths that is in the form of a bar, or a wafer, of a weight accepted by the bullion markets

(b) a gold coin minted after 1800 that is:

· of a purity of not less than 900 thousandths

· or has been, legal tender in its country of origin

· of a description of coin that is normally sold at a price that does not exceed 180 per cent of the open market value of the gold contained in the coin

(c) an investment gold coin as specified in Investment gold coins (VAT Notice 701/21A).

Additionally, all silver, gold, and platinum bullion coins produced by The Royal Mint, such as Sovereigns and Britannias, are not subject to Capital Gains Tax. This means any gains made from selling these coins are not taxed, regardless of the amount (there is no cap).

A Shift in Strategy

“The UK tax burden is set to hit a new high as a proportion of GDP, so investors aren’t just buying gold to diversify portfolios or for gold’s historical appeal or ability to preserve wealth. This trend reflects a growing awareness of the unique tax advantages that the precious metal offers. Gold is standing out to investors as a smart, tax-efficient alternative in the face of economic uncertainty and mounting tax pressures.”

Paul Williams, managing director of Solomon Global

Buying gold, selling gold or just gold-curious? Speak to Solomon Global today: 020 7123 9248​ or visit: https://solomon-global.com/