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MrBlonde

Legal Tender And Capital Gains Tax

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Hi there,

I am seeking some advice and some general food for thought. Please feel free to add information to this topic.

I know Britannias and Sovereigns are capital gains tax exempt as they are legal tender.

But what happens when the Queen passes away? Common sense tells me we will have to change the pictures on all the coins from Elizabeth to Charles.

Eventually this means our Britannias and Sovereigns will no longer be legal tender as they would eventually be classed as old money. This has previously been the case with the recent withdrawl of british bank notes. Link below.....

http://money.uk.msn.com/news/funny-money/articles.aspx?cp-documentid=153268885

So.......if our gold and silver british coins no longer be classed as legal tender, then they will no longer be capital gains tax exempt.

This is the case unless our government decide to become very generous indeed and still allow old money made from gold and silver to become CGT exempt.

What are your thoughts?

What are your thoughts if we were to change our currency and join the euro? This would also create an issue too.

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Not sure what would happened if we joined the Euro but I understand that all gold sovs and brits are legal tender regardless of the monarch on the coin so you don't need to worry about that part - they just need to have been issued by the Royal Mint as per the Coinage Act of 1971

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Being of an age that remembers pre decimal currency, I can remember having monarchs from Victoria to Elizabeth on the coins in my pocket.

Coins are not withdrawn from service just because one of them snuffs it.

When the next of the rat pack takes the throne, then there will be another head on the coins in your pocket.

As to legal tender status of gold coins, it is not so clear cut as many think.

Only coins from 1837 onwards are CGT exempt.

oooops, link feccked. Go to HMRC site and look up CG78308

Edited by DiggerUK

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  • 336 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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