Royal Mint Lunar Gold

UK Legal Tender Lunar Coins with CGT Exemption

The Royal Mint Lunar series, formally named the Shengxiao Collection (shengxiao is the Chinese term for the zodiac cycle), launched in 2014 with the Year of the Horse. It follows the 12-year Chinese zodiac, with a different animal design each year. The first cycle runs from Horse (2014) to Snake (2025), and a second cycle begins in 2026 with a new Year of the Horse design.

The defining advantage of this series over other lunar coins is UK legal tender status. All Royal Mint Lunar gold coins are CGT-exempt for UK residents. A UK buyer who purchases a Perth Mint Lunar or RAM Lunar gold coin and later sells it at a profit owes Capital Gains Tax; the same transaction with a Royal Mint Lunar coin incurs no CGT. This is the single most important distinction for UK-based investors considering any lunar series.

Gold coins are struck from 999.9 fine gold, with the 1oz being the most popular denomination, followed by 1/4oz and 1/10oz. Larger sizes (5oz and 1kg) have also been produced. The 1oz gold coin has a 38.61 mm diameter and a £100 face value.

An important change occurred in 2021: The Royal Mint discontinued bullion-grade Lunar coins and shifted to Proof and Brilliant Uncirculated quality only. This significantly increased premiums above spot price and repositioned the post-2020 coins from pure investment products toward collector-hybrid pieces. Pre-2021 bullion-grade coins now trade on the secondary market, often at premiums above their original issue price. For buyers wanting a Royal Mint Lunar gold coin at a bullion-level premium, the secondary market is the only source.

The primary reverse designer for the early years was Wuon-Gean Ho, a British-Chinese print artist whose wood engraving background gave the coins a distinctive artistic character. Her heritage bridges the British and Chinese traditions that the series represents.

Royal Mint Lunar Gold Denominations

Zodiac Release Schedule (First Cycle)

Security and Design Features

• Guilloche background: A decorative braided pattern introduced with the series, serving both aesthetic and anti-counterfeiting purposes
• Number 8 motif: Incorporated into each coin's design; 8 is the luckiest number in Chinese culture
• Edge: Milled on gold coins
• Obverse: Ian Rank-Broadley portrait (2014-2015), Jody Clark portrait (2016-2023), Martin Jennings King Charles III portrait (2024 onward)

The series began in the Year of the Horse (the 7th animal in the Chinese zodiac cycle, not the first), a pragmatic production timing decision. Mintage varies widely: 300,000 pieces for the 2014 Horse silver bullion versus just 388 for the 2023 Rabbit gold proof.

Royal Mint Lunar Tax Treatment by Country

All Royal Mint Lunar coins are UK legal tender, which provides the most favourable tax position available for gold bullion in the United Kingdom.

United Kingdom

Gold Royal Mint Lunar coins are VAT-free as investment gold and CGT-exempt as UK legal tender. No Capital Gains Tax is due on any profit from selling these coins. This is the critical advantage over Perth Mint Lunar, RAM Lunar, or any other non-UK lunar series. Silver Lunar coins are also CGT-exempt, but carry 20% VAT at point of purchase.

Gold Royal Mint Lunar coins are SIPP-eligible for UK pension holders. Tax relief at the holder's marginal rate (up to 45%) applies, and gains are CGT-sheltered within the pension wrapper.

United States

UK legal tender coins meeting the 999.9 fineness requirement are generally IRA-eligible through approved custodians, though availability varies. Federal capital gains are taxed at the 28% collectibles rate for long-term holdings. State sales tax varies by state.

Canada

Gold coins of 99.5%+ purity are GST/HST-exempt. Royal Mint Lunar coins at 999.9 qualify. RRSP and TFSA eligibility depends on the custodian accepting them.

European Union

VAT-exempt as investment gold under the EU Investment Gold Directive.

Australia

GST-free as investment gold of 99.5%+ purity. Capital gains tax applies, with a 50% discount for holdings over 12 months.

Singapore and Hong Kong

Singapore: 0% GST as Investment Precious Metal. Hong Kong: no sales tax, no import duty, no capital gains tax. Chinese zodiac coins have cultural resonance in both markets, supporting demand.

The Shengxiao Collection: Bridging British and Chinese Heritage

The Royal Mint's lunar programme began in 2014, entering a market that the Perth Mint had dominated since 1996. The decision to name it the "Shengxiao Collection" signalled a commitment to cultural authenticity rather than a generic zodiac theme. The first issue, the Year of the Horse, featured a reverse by Wuon-Gean Ho, a British-Chinese artist specialising in wood engravings. Her appointment was itself a statement: her dual heritage mirrored the series' ambition to unite British minting tradition with Chinese zodiac culture.

Ho designed the first four animals (Horse, Sheep, Monkey, Rooster), establishing a visual language that distinguished the series from Perth Mint's more traditional Chinese-influenced aesthetic. The RAM Lunar designs are similarly contemporary, but the Royal Mint's use of wood engraving techniques gave the Shengxiao coins a tactile, handcrafted quality unusual in modern bullion. Harry Brockway took over for the Dog and Pig (2018-2019), and P.J. Lynch designed the Rat and Ox (2020-2021).

The incorporation of the number 8 across the series is a deliberate cultural reference. In Chinese numerology, 8 is the luckiest number, associated with prosperity and wealth. Its recurring presence in mintage figures and design elements reflects genuine cultural sensitivity rather than surface-level theming.

In 2021, The Royal Mint made the controversial decision to discontinue bullion-grade Lunar coins. From the Year of the Ox onward, only Proof and Brilliant Uncirculated finishes were offered, at significantly higher premiums. This shifted the series from a mass-market investment product toward a collector niche. Investors who had accumulated bullion-grade coins from 2014-2020 found their holdings appreciating as supply became fixed. The pre-2021 coins now occupy a secondary market segment alongside completed series like the Gold Queen's Beasts.

The second zodiac cycle begins in 2026 with a new Year of the Horse. It remains to be seen whether bullion-grade versions will return or whether the proof/BU-only approach will continue.

Royal Mint Lunar vs Perth Mint Lunar, RAM Lunar, and Other UK Gold Coins

The Perth Mint Lunar is the original and most established lunar bullion programme. Series I ran from 1996-2007, Series II from 2008-2019, and Series III from 2020-2031. Perth offers the widest weight range (1/20oz to 10oz gold, 1/2oz to 10kg silver), unlimited bullion-grade production, and decades of global collector following. For sheer liquidity and international recognition, the Perth Mint Lunar is the benchmark. The Royal Mint Lunar has lower mintages, UK CGT exemption, and a different artistic sensibility.

For UK buyers specifically, the tax comparison is decisive. A Perth Mint Lunar gold coin sold at a profit incurs CGT at the buyer's marginal rate (18% or 24%, after a £3,000 annual allowance). A Royal Mint Lunar gold coin sold at the same profit incurs no CGT at all. Over a long holding period with significant gold price appreciation, this difference can be substantial.

The RAM Lunar from the Royal Australian Mint is the newest entrant (2020). It offers 999.9 gold at competitive premiums with 5,000-coin mintage caps, but it lacks both the Perth Mint's brand recognition and the Royal Mint Lunar's CGT exemption. It fills a niche for buyers who want a lunar coin at bullion premiums from a sovereign mint, particularly now that the Royal Mint's own bullion-grade Lunars are discontinued.

Compared to other Royal Mint gold coins, the Lunar occupies a collector-investment crossover position. The Gold Britannia is the most liquid UK gold coin with the strongest security features. The Gold Royal Arms offers a consistent single-design investment coin. The Gold Tudor Beasts provides annually changing heraldic designs. All share CGT exemption. The Lunar's unique appeal is its zodiac theme and the cultural demand this generates, particularly among buyers in Asian markets and the Chinese diaspora.