Are Brits Buying Gold to Avoid Taxes? Major EU Border Changes from October! Heavy Business Taxation May Keep Pushing Prices Up!
- TBA
- Aug 3
- 4 min read
More Brits Buying Gold Coins to Avoid Taxes
This year, the number of British investors purchasing gold coins has hit a record high, aiming to avoid the impact of the capital gains tax (CGT) increase introduced in April—while also profiting from the recent gold price surge.
According to a report released last week by the Royal Mint, online transactions of gold bars and coins reached historic highs in Q1 of the 2025–26 UK fiscal year, with coin sales up 115% year-on-year. The World Gold Council echoed this trend, noting a 17% increase in UK demand for gold bars and coins compared to the previous year.
In a survey of 14,000 customers, 42% listed legal tax mitigation as the main reason for buying gold coins; another 26% said it helped them "preserve wealth."
Under UK tax law, coins produced by the Royal Mint—including all gold, silver, and platinum coins—are legal tender and thus exempt from CGT for UK residents. However, all non-Royal Mint gold, silver, and platinum coins, as well as gold and silver bars, are subject to CGT.
Louise Street, Senior Market Analyst at the World Gold Council, said the tax benefits of gold coins have "increased gold’s appeal" in recent months.
Gold has traditionally been seen as a safe haven asset. Its price has soared this year amid geopolitical tensions and concerns about U.S. tariffs. As of August 1st, gold was trading at around $3,350 per troy ounce in the UK. It has also benefited from growing concerns over rising commodity costs and is often used to hedge against inflation.
Capital Gains Tax (CGT) applies to profits from selling investments, businesses, second homes, stocks, and other assets. In recent years, CGT rules have changed drastically. The previous Conservative government slashed the CGT allowance from £12,300 in 2022–23 to just £3,000 in 2024–25. In last October’s budget, Chancellor Rachel Reeves raised CGT rates from 10%–28% to 18%–32%.
Still, some wealth managers note that gold is extremely liquid—it can be sold at any time, even in tight markets, with almost no delay. However, owning gold coins may come with additional practical costs such as storage, insurance, and transaction fees. If you're considering gold investments, it’s important to speak with a professional tax advisor to fully understand the risks and benefits.
High Tax Pressure Could Keep UK Prices Climbing
A recent British Retail Consortium (BRC) survey of retail CFOs revealed that 85% of businesses have already raised product prices following increases in employer National Insurance contributions and the national minimum wage. The survey covered over 9,000 UK stores across all retail sectors. Notably, 65% of retailers expect further price hikes in the coming year.
The BRC stated that rising tax-related costs were a key driver of these price increases. Dual increases in employer NI and minimum wage have significantly raised labor costs, which retailers are now passing on to consumers.
Official data reflects this inflationary trend. In June, the UK Consumer Price Index (CPI) rose 3.6% year-on-year—the highest in over a year, and possibly exceeding the Bank of England’s projected September peak of 3.7%.
Based on these figures, the BRC warned that food inflation may hit 6% by year-end. With the holiday shopping season approaching, British households will likely face increased financial pressure, especially on essentials like groceries and daily necessities.
To cope with mounting cost pressures, most retailers have already taken austerity measures. The survey shows:
42% froze recruitment and paused new hiring
38% reduced store staff
Another 38% cut investments in expansion or technology upgrades
Retail contributes around 9% of total UK employment. Facing a worsening business climate, most CFOs remain pessimistic. About 56% expressed a negative outlook for the next 12 months, while only 11% felt optimistic.
EU to Eliminate Passport Stamps from October
According to UK media, from October 12, physical passport stamps will be replaced by the EU’s Entry/Exit System (EES). All non-EU travelers—including UK citizens—will need to complete fingerprint and facial scans when crossing EU borders.
This new system was originally set to roll out in November last year but was delayed due to technical issues. The current plan aims for full implementation across all member states by April 10, 2026.
Biometric data will be collected at departure points—airports, ports, or train stations—via dedicated kiosks. Passengers will scan their fingerprints and have their photos taken, along with passport data input. The process is free. For regular tourists, the data will remain valid for 3 years. For those who overstay the 90-day visa-free period without a visa, data will be retained for 5 years.
Upon future re-entry, border officers can verify stored biometric data without repeating the process. The EU expects this system to streamline border checks. Travelers with e-passports may use automated e-gates for faster passage.
The EU states that the EES will significantly reduce wait times by pre-registering visitor data and simplifying ID checks. To ease land border traffic, France has already set up border points in Dover Port, Folkestone Eurotunnel Terminal, and London St. Pancras Eurostar Station. Self-driving travelers can register in their vehicles using handheld devices.
In May, the UK and EU reached an agreement: after EES is launched, registered UK citizens will be able to use EU e-gates. Some EU countries like Germany and Bulgaria have already started allowing UK travelers to use e-gates, with more expected to follow.
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