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The short answer: both are excellent first gold coins, and both are VAT-free and free from Capital Gains Tax for UK buyers. A 1 oz Gold Britannia usually costs less per ounce of gold, so it suits larger amounts. The Sovereign is smaller, tougher and easier to buy and sell a little at a time, so it suits smaller budgets and gradual buying.
Sovereign vs Britannia at a glance
| Gold Sovereign | 1 oz Gold Britannia | |
|---|---|---|
| Gold content | 7.32 g (0.2354 troy oz) | 31.10 g (1 troy oz) |
| Purity | 22 carat (91.67% gold) | 24 carat (99.99% gold) |
| Size | 22.05 mm | 38.61 mm |
| Face value | £1 | £100 |
| Made since | 1817 (modern Sovereign) | 1987 |
| VAT | None | None |
| Capital Gains Tax | None (UK legal tender) | None (UK legal tender) |
| Premium over gold price | Usually higher per ounce | Usually lower per ounce |
About 4¼ Sovereigns contain the same amount of gold as one 1 oz Britannia.
Cost: which gives you more gold for your money?
Every gold coin costs the value of its gold plus a premium, which covers making, distributing and selling it. Smaller coins cost more to make for each ounce of gold they contain, so Sovereigns usually carry a higher premium per ounce than 1 oz Britannias.
If your goal is to get as much gold as possible for a set amount of money, the 1 oz Britannia usually wins. The difference matters most when you are buying several ounces.
Flexibility: buying and selling in smaller amounts
A Sovereign holds less than a quarter of an ounce of gold, so it costs far less than a 1 oz coin. That makes it easier to:
- Buy a little at a time, for example one coin a month.
- Sell only part of your gold when you need some money, instead of selling a whole ounce.
- Give gold as a gift, for a birth, wedding or birthday.
Britannias also come in smaller sizes, such as 1/4 oz and 1/10 oz, but these carry higher premiums than the 1 oz coin.
Durability and condition
Sovereigns are 22 carat gold mixed with a little copper, which makes them harder and more resistant to scratches. Britannias have been 24 carat, almost pure gold, since 2013. Pure gold is softer, so Britannias mark more easily and are best kept in their capsules.
Since 2021, Gold Britannias also include anti-counterfeiting features, which makes them easier to check.
Selling them later
Both coins are among the best-known gold coins in the world, and UK dealers buy both readily. Prices for both follow the gold price. Older or rare Sovereign dates can sometimes be worth more than their gold to collectors, but most buyers should treat both as bullion.
Which should you choose?
Choose Sovereigns if you…
- have a smaller budget
- want to buy gradually
- might want to sell part of your gold
- are buying gold as a gift
Choose Britannias if you…
- are buying several ounces at once
- want the lowest cost per ounce
- plan to hold for the long term
- want the purest gold
Many buyers hold both: Britannias for most of their gold, and some Sovereigns for flexibility.
Frequently asked questions
Are Sovereigns and Britannias free from tax?
For UK buyers, yes. Both are investment gold, so there is no VAT when you buy them, and both are UK legal tender, so gains are free from Capital Gains Tax. Read more in our guides to VAT on silver vs gold and Capital Gains Tax on coins.
How much gold is in a Sovereign?
A full Sovereign contains 7.32 g of pure gold, which is 0.2354 troy ounces.
Is a Sovereign real gold if it is only 22 carat?
Yes. The 22 carat alloy is 91.67% gold. The rest is mostly copper, which makes the coin harder wearing. You are paying for the gold content, not the total weight.
Can I sell Sovereigns and Britannias to you?
Yes. We buy gold coins by quote. See our Sell to us page for how it works.
Looking for gold coins?
Our gold stock changes often. Contact us to ask about Sovereigns and Britannias, or read our gold buying guide.
Ask about goldGold buying guideThis guide is general information, not financial or tax advice. The value of gold can go down as well as up. Coin specifications are from The Royal Mint.