Hi, can anyone help on this?:

reading the Inland Revenue website regarding the CGT status of gold sovereigns and britannias the following article states that they are sterling currency and exempt from CGT:

http://www.hmrc.gov.uk/manuals/cg4manual/cg78308.htm

and the following page states that "Coins are to be regarded as currency only if they are legal tender at the time of their acquisition or disposal..."

http://www.hmrc.gov.uk/manuals/cg4manual/cg78307.htm

What I don't get is what do they mean by "at the time of their acquisition or disposal"? I understood that CGT was only calculated at the time of disposal of an asset, not it's acquisition. Does their wording suggest that if, for example, one buys sovs when they are legal tender, and then sells them when they are no longer legal tender there would be no CGT to pay?

Thanks in advance

tm

First off, great find on your first link.
I had read that there was no CGT on legal tender, and that Sovereigns and Britannias were legal tender, so *assumed* that there was no CGT of UK gold coins. But that is the first place I have read - stating that they actually are exempt.

So to your question:-
The first link says Sovereigns and Britannias are except, because they are legal tender. - That's good
The second says they are exempt even if, after they buy them, they stop being legal tender. - That's good too.

thanks for your reply.

it's just that i wouldn't be at all surprised if the govt change the rules at some point and revoke the cgt-exempt status of sovereigns and britannias, but probably quietly, just changing the relevant web site docs. Hence my interest in the "...legal tender at the time of their acquisition..." bit. Presumably proof of date of purchase of sovs & brits would be required.

As you may have guessed i have a couple of sovs & brits

tm