Solomon Global has recorded a sharp increase in the proportion of prospective clients citing tax efficiency as a key reason for exploring physical gold, as speculation intensifies over potential tax changes in the upcoming Autumn Budget.
New Solomon Global data shows the share of inbound calls citing tax efficiency as the key reason for exploring gold rose 14.55% in a month, from 34.29% in August 2026 to 39.28% in September 2026.
The increase comes just weeks before the Chancellor delivers the Budget on 28 October 2026, against an increasingly challenging backdrop for the public finances.
Pressure Builds Ahead of the October Budget
Fresh figures released on 22 September showed that UK government borrowing reached £18.3 billion in August, exceeding forecasts and taking borrowing in the financial year to date to £77.3 billion – £8.1 billion above the Office for Budget Responsibility’s expectations.
Higher debt-servicing costs and inflation have added to the pressure facing the Treasury, with estimates suggesting the Government’s fiscal headroom has narrowed substantially since earlier in the year.
Against that backdrop, attention is increasingly turning to what tax measures could feature in October.
One proposal reported in recent days would involve raising Capital Gains Tax and bringing rates more closely into line with Income Tax. The proposal has been discussed as part of a package that could raise approximately £14 billion from CGT changes, although no such change has been confirmed as Government policy.
For individuals holding assets potentially exposed to Capital Gains Tax, the prospect of further changes adds another layer of uncertainty to an already significantly altered tax environment.
Capital Gains Tax Has Already Changed Considerably
The annual Capital Gains Tax exempt amount available to individuals has fallen dramatically in recent years.
In the 2022/23 tax year, individuals could realise £12,300 of gains before CGT became payable. That allowance fell to £6,000 in 2023/24 and subsequently to just £3,000, where it remains for the 2026/27 tax year.
The main rates applying to many chargeable assets have also increased. Rates that previously stood at 10% for basic-rate taxpayers and 20% for higher-rate taxpayers were increased to 18% and 24% respectively.
Against this backdrop, Solomon Global has seen tax efficiency become an increasingly prominent consideration among people enquiring about physical gold.
Why Some Physical Gold Is Different
Certain UK legal-tender gold coins occupy an unusual position within the UK tax system.
HMRC confirms that Britannia gold coins and qualifying Sovereigns are treated as sterling currency and are therefore exempt from Capital Gains Tax. This means that, under current rules, gains realised by UK residents when disposing of qualifying coins are not subject to the usual £3,000 annual CGT exemption limit.
Qualifying investment gold is also exempt from VAT in the UK.
This combination means coins such as gold Britannias and qualifying Sovereigns can provide exposure to physical gold while benefiting from both CGT and VAT exemptions under current UK tax rules.
It is important to distinguish these coins from gold generally. Not every gold coin is exempt from CGT, while the VAT exemption applies specifically to gold meeting the definition of investment gold.
Solomon Global Sees Tax Efficiency Move Up the Agenda
Commenting on the figures, a Solomon Global spokesperson said:
“Appetite for tax-free gold has strengthened again as the country braces for the October Budget. The proportion of inbound calls to Solomon Global citing tax efficiency as the key reason for exploring gold has risen 14.55% in the last month, from 34.29% in August to 39.28% in September.
“With further Capital Gains Tax changes now being discussed, we expect tax efficiency to remain an increasingly important consideration for people reviewing how their wealth is structured.
“The annual CGT allowance has been eroded from £12,300 in 2022/23 to just £3,000 today, while the main rates have risen from 10% and 20% to 18% and 24% respectively.
“Britannias, Sovereigns and other qualifying UK legal-tender bullion coins from The Royal Mint can be exempt from CGT for UK residents, while qualifying investment gold is also exempt from VAT.
“The combination of tangible ownership and tax efficiency is therefore attracting growing attention from people considering physical gold.”
A Budget Being Watched Closely
Precisely what will appear in the October Budget remains uncertain.
The Treasury has confirmed that the Budget will take place on Wednesday 28 October, and the Chancellor has said it will be built around fiscal discipline and adherence to the Government’s fiscal rules.
What is already clear is that it will arrive against a difficult fiscal backdrop. Government borrowing has exceeded forecasts, debt-interest costs have risen, and inflation remains above the Bank of England’s 2% target.
For people reviewing their finances ahead of the Budget, that uncertainty appears to be having a measurable effect.
Solomon Global’s latest enquiry data suggests tax efficiency is no longer a secondary consideration for many prospective gold buyers: almost four in ten inbound callers now cite it as their primary reason for exploring gold.
Tax treatment depends on individual circumstances and may change in the future. This article is for general information only and does not constitute financial, investment, legal or tax advice. Investments in physical bullion are not regulated by the Financial Conduct Authority. The value of gold can fall as well as rise, and past performance is not a reliable indicator of future results.
