GoldQuestions
Sovereign vs Britannia vs Krugerrand
Sovereigns, Britannias, and Krugerrands are all widely traded gold coins, but UK legal tender status and CGT treatment make the comparison more than a purity question.
Last reviewed: 2026-06-24
Short answer
All three are well-known, widely traded gold coins, and all three are VAT-free as investment gold. The decision usually comes down to two things: how much gold you want per coin, and capital gains tax. Sovereigns and Britannias are UK legal tender and therefore commonly discussed as CGT-free for UK residents. The Krugerrand is foreign legal tender, so it does not get that UK exemption.
At a glance
The main differences are fine-gold content, purity, issuer, and UK tax treatment.
| Feature | Sovereign | Britannia (1oz) | Krugerrand (1oz) |
|---|---|---|---|
| Fine gold content | ~0.235 oz (7.32 g) | 1 troy oz (31.10 g) | 1 troy oz (31.10 g) |
| Purity | 22 carat (0.9167) | 24 carat (0.9999) | 22 carat (0.9167) |
| Gross weight | 7.98 g | ~31.1 g | 33.93 g |
| Face value / issuer | GBP 1, The Royal Mint | GBP 100, The Royal Mint | 1 rand, South Africa |
| UK legal tender? | Yes | Yes | No |
| UK capital gains tax | Commonly discussed as exempt | Commonly discussed as exempt | Not exempt |
| VAT (UK) | Exempt | Exempt | Exempt |
The capital gains tax point
Under UK rules, coins that are UK legal tender are commonly discussed as exempt from capital gains tax. The Sovereign and Britannia are both produced by The Royal Mint and are legal tender here, so gains on them are usually treated differently from gains on bars or foreign coins. The Krugerrand is legal tender in South Africa, not the UK. It is still legal to buy and own, and still VAT-free investment gold, but a gain on it is not shielded from UK capital gains tax.
Gold content and divisibility
A full Sovereign holds about a quarter-ounce of gold, which makes it a smaller and more divisible unit. That can be useful if someone may want to sell modest amounts. The 1oz Britannia and 1oz Krugerrand each hold a full ounce, so they are larger single units. Smaller coins generally carry a higher premium per gram than larger ones, so the Sovereigns flexibility can come at a slightly higher cost over spot.
Purity and durability
The Britannia is 24-carat, or .9999 fine. The Sovereign and Krugerrand are 22-carat, alloyed with a little copper, which makes them harder and more scratch-resistant. Purity does not change the amount of pure gold in a 1oz coin. A 1oz Krugerrand still contains a full ounce of gold, just in a heavier overall coin because of the alloy.
Premiums and resale route
The cheapest coin is not always the best comparison. A buyer should compare the delivered price, premium above spot, dealer buyback quote, delivery cost, payment fees, and likely resale route. Sovereigns may show a higher percentage premium because each coin contains less gold, but they are familiar and divisible. Britannias are familiar UK one-ounce coins with CGT context. Krugerrands have deep global recognition, which can help liquidity, but the UK tax treatment should be part of the comparison.
Common buying mistakes
Common mistakes include comparing gross weight instead of fine-gold content, assuming every legal-tender coin gets the UK CGT exemption, ignoring the dealer spread, or treating proof and collectable versions as if they were identical to standard bullion coins. A proof coin may have a collectable premium that behaves differently from bullion value. For a clean comparison, use standard bullion versions, current spot price, delivered retail price, and a realistic sell-back assumption.
Which is best?
There is no single answer. For UK buyers focused on tax efficiency, the CGT-free status commonly associated with Sovereigns and Britannias is a strong practical point. For someone wanting a full ounce in 24-carat form, the Britannia stands out. The Krugerrand remains one of the most liquid and recognisable coins in the world, but with the UK CGT caveat in mind.
Sources to verify
For specifications, check The Royal Mint for Sovereign and Britannia details and official Krugerrand information for the South African coin. For tax context, check HMRC capital gains tax guidance and current rates and allowances on gov.uk. Coin specifications, tax rules, and allowances can change, so a serious comparison should use current official sources rather than an old article or a dealer summary.
Key points
All three are VAT-free investment gold. Sovereigns and Britannias are UK legal tender and commonly discussed as CGT-free in the UK, while Krugerrands are not. A Sovereign holds about 0.235 oz of gold, while 1oz Britannias and Krugerrands each hold one full troy ounce. Britannias are 24-carat, while Sovereigns and Krugerrands are harder-wearing 22-carat coins. Smaller coins cost more over spot but are easier to sell in parts.
Educational disclaimer
This guide is educational only and is not financial, investment, tax, legal, or personal advice.
FAQs
Which of these coins is capital gains tax free in the UK?
Sovereigns and Britannias are commonly discussed as CGT-free for UK residents because they are UK legal tender. The Krugerrand is South African legal tender, not UK legal tender, so it does not get the UK CGT exemption.
Which holds the most gold?
A 1oz Britannia and a 1oz Krugerrand each contain a full troy ounce of pure gold. A full Sovereign contains about 0.235 oz, or 7.32 g, of fine gold.
Are they all VAT free?
Yes. All three are investment gold, which is VAT-exempt in the UK. The difference between them is capital gains tax, not VAT.