Gold ISA UK: How to Invest in Gold Tax-Free
A Stocks & Shares ISA lets UK investors hold gold investments completely tax-free. This guide explains which gold investments qualify for ISAs, how to get started, and the best platforms to use.
No Capital Gains Tax
All profits from gold price increases are tax-free, no matter how much you make.
No Income Tax
Any distributions or dividends from gold investments are completely tax-free.
No Reporting
No need to declare ISA gains on your tax return. Set it and forget it.
Can You Hold Physical Gold in an ISA?
No - Physical Gold Cannot Be Held in an ISA
UK ISA rules only allow "qualifying investments" - shares, funds, and bonds traded on recognised exchanges. Physical gold bars and coins are not qualifying investments and cannot be held directly in any ISA.
Yes - Gold ETFs Can Be Held in an ISA
Gold ETFs (Exchange-Traded Funds) that are backed by physical gold ARE ISA eligible. These funds hold real gold in secure vaults, and your investment represents a share of that gold. It's the closest you can get to owning physical gold in an ISA.
What Gold Investments Can You Hold in an ISA?
Exchange-traded funds backed by physical gold
Examples:
iShares Physical Gold (SGLN), Invesco Physical Gold (SGLD)
Pros:
- • Low cost (0.12%)
- • Track gold price closely
- • Very liquid
Cons:
- • No physical possession
- • Counterparty risk
Shares in gold mining companies
Examples:
Barrick Gold, Fresnillo, Newmont
Pros:
- • Potential dividends
- • Leverage to gold prices
Cons:
- • Company-specific risk
- • Not pure gold exposure
Funds holding baskets of gold mining shares
Examples:
BlackRock Gold & General, Jupiter Gold & Silver Fund
Pros:
- • Diversified mining exposure
- • Professional management
Cons:
- • Higher fees (0.8-1.5%)
- • Not pure gold exposure
Actual gold you can hold
Examples:
Gold Britannias, Gold Sovereigns, Gold bars
Pros:
- • Tangible ownership
- • UK coins CGT-exempt anyway
Cons:
- • Cannot hold in ISA
- • Storage/insurance needed
How to Set Up a Gold ISA
Open a Stocks & Shares ISA
Choose a platform that offers gold ETFs (most do). If you already have a Stocks & Shares ISA, you can buy gold ETFs within it. You can only pay into one Stocks & Shares ISA per tax year.
Fund Your ISA
Transfer money into your ISA via bank transfer or debit card. You can invest up to £20,000 per tax year (2024/25). This allowance is shared across all ISA types.
Buy a Gold ETF
Search for your chosen gold ETF (e.g., "iShares Physical Gold" or ticker "SGLN"). Enter the amount you want to invest and place your order. Most platforms execute instantly during market hours.
Hold and Grow Tax-Free
Your gold investment will track gold prices. All gains are tax-free within the ISA. You can sell anytime, and reinvest within the ISA without triggering any tax.
Best Platforms for a Gold ISA
| Platform | Platform Fee | Gold ETFs | Min Investment | Best For |
|---|---|---|---|---|
| Hargreaves Lansdown | 0.45% | Yes | £25/month | Best for beginners |
| AJ Bell | 0.25% | Yes | £25 | Best value |
| Interactive Investor | £4.99-11.99/month | Yes | £25 | Best for large portfolios |
| Vanguard | 0.15% | Limited | £500 or £100/month | Cheapest platform fee |
| Trading 212 | Free | Yes | £1 | Best for small amounts |
Our Recommendation
For most investors, AJ Bell offers the best balance of low fees and good service. For very small amounts, Trading 212 is free. If you're already with a platform, check if they offer gold ETFs before switching.
Gold ISA vs Physical Gold Coins
- All gains tax-free in ISA
- Low costs (0.12% + platform fee)
- No storage or insurance needed
- Easy to buy/sell
- No physical possession
Best for: Most investors wanting simple, low-cost gold exposure
- UK coins (Britannias, Sovereigns) are CGT-exempt
- Tangible ownership - hold in your hand
- No counterparty risk
- Higher premiums (3-8% over spot)
- Storage and insurance required
Best for: Those wanting tangible assets and privacy
The Verdict
Both options can be tax-efficient. Gold ETFs in an ISA have lower costs and are easier to manage. Physical UK coins are CGT-exempt without an ISA but cost more upfront. Many investors use both approaches together - ETFs for easy trading and coins for tangible wealth storage.
Gold ISA UK FAQs
No, you cannot hold physical gold bars or coins directly in a UK ISA. However, you can invest in gold ETFs (Exchange-Traded Funds) that are backed by physical gold. These funds hold real gold in vaults and are eligible for Stocks & Shares ISAs.
The best way to hold gold in an ISA is through a physically-backed gold ETF like iShares Physical Gold (SGLN) or Invesco Physical Gold (SGLD). These have low annual fees (0.12%), track gold prices closely, and can be held in any Stocks & Shares ISA.
Yes, gold investments held within an ISA are completely tax-free. You pay no Capital Gains Tax on profits and no Income Tax on any distributions. This makes a gold ISA one of the most tax-efficient ways to invest in gold in the UK.
You can invest up to your full ISA allowance (£20,000 for 2024/25) in gold ETFs within a Stocks & Shares ISA. There's no limit to how much gold value you can accumulate in your ISA over time - only the annual contribution is capped.