After looking all over the HM Revenue website, I could find the answer to my question. Does anyone know the tax position (in regard to profits made by gold sales) with allocated gold such as BV and Gold Money? If I sold my gold and made £5k profit, do I have to declare this an additional income subject to taxation? I know that if you own over £5k of physical gold then you are liable to be taxed on it (except for Britannias) but what about the profit made from other sources? Help a goldbug in need....

Yep, I'm a saddo - replying to my own posts

Anyhow I found this which just about answers my question:

http://www.taxationweb.co.uk/forum/discuss.php?id=21217

It is belief that you are entitled to make £9200 before CGT is applied. I think that from April this year you will pay 18% on any profits over £9200.

So you should be safe with £5K investment.

For just about anything you own including gold and silver coins, bullion & bar but excluding those in the exception below - if you buy them, hold them, sell them, hoping that you will make a profit from the increase in price then you are investing and CGT comes into play. If you trade them, in other words buy them, advertise to sell them on a website, eBay shop, or magazine, or on a table in a collectors fair, then you are making a market in them or trading them and then they are then subject to income tax, corporation tax, VAT, etc

The law exempts post-1837 Sovereigns and Britannias from CGT providing you are investing them