Investors are buying gold to avoid the Chancellor’s tax increase
Demand for gold has soared as investors try to take advantage of rising prices and avoid higher taxes.
Sales of gold coins – which are not subject to capital gains tax (CGT) – were three times higher between October and December than in the same period in 2023, The Royal Mint said.
The strong demand came as the price rose to a record high of nearly $2,800 an ounce in late October – up 30 percent from a year earlier.
The Royal Mint said the purchase was also driven by the hunt for “tax-efficient investments.”
In the October Budget, Chancellor Rachel Reeves increased CGT – which is paid on the profits made on assets and investments such as shares, property or art when they are sold – from 10 per cent to 18 per cent at the lower rate and from 20 percent. percent to 24 percent for higher incomes.
Regular gold is not exempt from CGT, but as legal tender bullion coins sold by the Royal Mint are.
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