1/4 oz The Royal Mint Lunar Gold Coin

The UK's CGT-Exempt Lunar Gold Coin

The 1/4 oz Royal Mint Lunar Gold Coin belongs to the Shengxiao Collection, the first official UK lunar coin series. Launched in 2014 with the Year of the Horse, the series follows the 12-year Chinese zodiac cycle, featuring a new animal design each year. The quarter-ounce denomination contains 7.8 grams of 999.9 fine gold with a GBP 25 face value as UK legal tender.

For UK investors, the Shengxiao Collection carries a tax advantage that competing lunar series from Perth Mint and the Royal Australian Mint cannot match: as UK legal tender from The Royal Mint, every coin in the series is exempt from Capital Gains Tax. A UK buyer selling Perth Mint Lunar or RAM Lunar coins at a profit would owe CGT at their marginal rate. Selling a Royal Mint Lunar coin at the same profit attracts no CGT at all. This distinction alone can make the Royal Mint version the most cost-effective lunar gold coin for UK-based investors, regardless of the headline purchase premium.

The series bridges British minting heritage with Chinese cultural tradition. The primary reverse designer for the early years was Wuon-Gean Ho, a British-Chinese print artist specialising in wood engravings. Her background, unusual for coin design, brought a distinctive aesthetic to the series. The number 8, considered the luckiest number in Chinese culture, is deliberately incorporated across the series' design elements. The first zodiac cycle completes with the 2025 Year of the Snake, and a second cycle begins in 2026.

Royal Mint Lunar 1/4 oz Gold Specifications

Design Transition and Production History

The obverse carried Ian Rank-Broadley's portrait of Queen Elizabeth II for the 2014-2015 issues, followed by Jody Clark's portrait from 2016 through 2023. From 2024, the Martin Jennings portrait of King Charles III appears. Each year's reverse features the corresponding zodiac animal, with designers including Wuon-Gean Ho (2014-2017), Harry Brockway (2018-2019), P.J. Lynch (2020-2021), and David Lawrence (2022).

A significant production change occurred in 2021: The Royal Mint discontinued bullion-grade releases and moved to Proof and Brilliant Uncirculated quality only. Pre-2021 bullion versions, struck at lower premiums for investment buyers, now trade on the secondary market and have seen increased premiums over time. Post-2021 issues carry notably higher premiums due to the enhanced finish and limited production runs. Security features include a guilloche background pattern and the standard Royal Mint sealed packaging for authentication.

Tax Advantages of the Royal Mint Lunar

The Royal Mint Lunar occupies a unique position in the lunar coin market: it is the only lunar zodiac series from a major mint that carries UK CGT exemption.

Purchase Tax

• United Kingdom: VAT-free as investment gold. The 999.9 purity and UK legal tender status satisfy all HMRC investment gold criteria.
• European Union: VAT-exempt under the EU Investment Gold Directive.
• United States: No federal sales tax. State-level treatment varies.
• Canada: GST/HST exempt for gold at 99.5% purity or above.
• Australia: GST-free for investment-grade gold.
• Singapore: GST-exempt as an Investment Precious Metal.
• Hong Kong: No sales tax or import duty.

Capital Gains Tax

• UK: CGT-exempt. This is the critical differentiator for UK investors. The Royal Mint Lunar is UK legal tender, placing it alongside the 1/4 oz Britannia and the Gold Sovereign as coins that can be sold at any profit without triggering a CGT liability. Perth Mint Lunar and RAM Lunar coins do not qualify for this exemption.
• UK SIPP: Gold bullion is eligible for Self-Invested Personal Pensions. Tax relief at the buyer's marginal income tax rate, and gains within the SIPP are also CGT-free.
• USA: UK legal tender coins meeting purity requirements are generally IRA-eligible. Confirm with your custodian. Long-term capital gains on bullion are taxed at the 28% collectibles rate outside retirement accounts.
• Canada: RRSP-eligible in principle (meets purity requirements). Capital gains at the 50% inclusion rate.
• Germany: Capital gains tax-free if held for more than one year.

Royal Mint Lunar vs Perth Mint Lunar and Britannia

The most relevant comparison is with the Perth Mint Lunar, the original and best-known lunar bullion programme. Perth launched its first lunar series in 1996, giving it nearly two decades of head start in market recognition. Perth offers a much wider weight range (1/20 oz to 10 oz in gold) and has maintained continuous bullion-grade production throughout, keeping premiums competitive. The Royal Mint discontinued bullion-grade lunar coins after 2020, pushing post-2021 issues into higher-premium proof and BU territory. For investors buying on the secondary market, pre-2021 Royal Mint Lunar bullion coins offer a compelling combination of CGT exemption and lower premiums than current production.

Against the 1/4 oz Britannia, the Royal Mint Lunar shares the same CGT-exempt status, same purity, same mint, and the same face value structure. The Britannia has a deeper secondary market and more advanced security features (tincture lines, micro-text). The Lunar offers the collectible appeal of annual zodiac designs and the cultural connection to Chinese New Year celebrations. For a pure investment decision, the Britannia typically trades at a lower premium and has greater liquidity. For buyers who value the zodiac theme and want to build a year set, the Royal Mint Lunar is the only option that combines that interest with UK tax efficiency.

The RAM Lunar is the newest competitor, launched in 2020. Its lower mintage figures create potential scarcity value, and its contemporary Australian design style is visually distinct from both the Perth and Royal Mint interpretations. It lacks the UK CGT exemption and has not yet built the secondary market depth that the Perth Mint series commands.