1 oz The Royal Mint Lunar Silver Coin

The Royal Mint Lunar Silver Coin: UK Legal Tender Zodiac Bullion

The 1 oz Royal Mint Lunar silver coin belongs to the Shengxiao Collection, a 12-year programme launched in 2014 that pairs British minting heritage with the Chinese zodiac cycle. Each year features a different zodiac animal, from the inaugural Horse (2014) through to the Snake (2025), with a second cycle beginning in 2026. The series name comes from shengxiao, the Chinese term for the zodiac.

For UK buyers, this coin's defining feature is CGT exemption. As UK legal tender with a £2 face value, the Royal Mint Lunar is exempt from Capital Gains Tax on disposal. This is the critical advantage over the Perth Mint Lunar, which dominates the global zodiac coin market but offers no UK tax benefit. A UK investor who sells Perth Mint Lunar silver at a profit owes CGT at their marginal rate; the same profit on a Royal Mint Lunar is tax-free.

The series underwent a significant change in 2021, when The Royal Mint discontinued bullion-grade production and shifted to Proof and Brilliant Uncirculated finishes only. This substantially increased premiums on post-2020 issues, moving the series from a pure investment product toward a collector/hybrid product. Pre-2021 bullion-grade coins now trade on the secondary market with their own premium dynamics.

The primary reverse designer is Wuon-Gean Ho, a British-Chinese print artist specialising in wood engravings. Her cultural heritage makes her a fitting choice for a series that bridges two traditions. Each coin incorporates the number 8, considered the luckiest number in Chinese culture, as a deliberate design element.

Royal Mint Lunar 1 oz Silver Specifications

Silver Denominations (Full Range)

Zodiac Release Schedule

Obverse portraits transitioned from Ian Rank-Broadley (2014-2015) to Jody Clark (2016-2023) for Queen Elizabeth II, then to Martin Jennings (2024 onward) for King Charles III. A guilloche background pattern on the obverse was introduced with the series. Mintage varies widely by year and format: the 2014 Horse silver bullion had 300,000 pieces; the 2023 Rabbit gold proof had just 388 pieces.

CGT Exemption and UK Legal Tender Status

The Royal Mint Lunar's tax treatment is its strongest selling point, particularly in the UK market. The following rules apply by jurisdiction.

• United Kingdom: CGT-exempt as UK legal tender. Silver coins are subject to 20% VAT on purchase. The CGT exemption applies regardless of the size of the gain, making this series especially valuable for long-term holds where significant appreciation occurs. The margin scheme may reduce the effective VAT on secondary-market purchases to the dealer's profit margin only.
• United States: .999 silver purity meets the IRA eligibility threshold. UK legal tender coins from a sovereign mint are generally accepted by IRA custodians, though individual custodian lists should be verified. Gains are taxed at the collectibles rate of up to 28%.
• European Union: Silver is subject to local VAT rates (19-27%). Not covered by the investment gold directive. The margin scheme may apply in Germany, the Netherlands, and other jurisdictions that permit it on second-hand coins.
• Canada: GST/HST-exempt for coins at .995 purity or above. RRSP-eligible through approved custodians.
• Australia: Silver may be GST-free at .999 purity through qualifying dealers, though the Perth Mint Lunar is the dominant local option.
• Singapore: GST-exempt under the IPM scheme for silver at .999 purity, subject to MAS-approved list inclusion. No capital gains tax.
• Hong Kong and China: No sales tax, no capital gains tax. The zodiac theme has strong cultural resonance in these markets, adding to demand beyond the pure bullion proposition.

Britain's First Zodiac Bullion Coin

The Shengxiao Collection was The Royal Mint's first venture into the Chinese zodiac coin market, a space that the Perth Mint had dominated since launching its Lunar Series I in 1996. The Royal Mint's entry in 2014 offered something no competitor could: UK legal tender status with CGT exemption. For British investors who wanted zodiac-themed bullion, this eliminated the need to pay capital gains on Perth Mint coins while getting the collecting appeal of annual zodiac designs.

The series began with the Year of the Horse rather than the Year of the Rat (the first animal in the Chinese zodiac cycle). This was a practical production timeline decision, not a cultural one. Starting at the seventh animal in the cycle meant the first complete cycle would end with the Snake in 2025, with a second cycle beginning in 2026.

Wuon-Gean Ho, the primary reverse designer for the first four years, brought an unusual background to coin design. A print artist specialising in wood engravings, her British-Chinese heritage gave her a personal connection to both the minting tradition and the zodiac theme. The designs show a contemporary interpretation of each animal rather than reproducing traditional Chinese artistic motifs, distinguishing the Royal Mint series visually from the Perth Mint's approach.

The controversial 2021 decision to discontinue bullion-grade production reshaped the series. Pre-2021 coins were struck to bullion standard with modest premiums, accessible to both stackers and collectors. Post-2021 issues are only available in Proof or Brilliant Uncirculated quality at substantially higher premiums, shifting the product firmly into collector territory. This has driven secondary market interest in the 2014-2020 bullion vintages, which represent the only years where the Royal Mint Lunar was a genuine low-premium bullion product.

Royal Mint Lunar vs Perth Mint Lunar and Other Zodiac Programmes

The Perth Mint Lunar is the benchmark against which all zodiac coin programmes are measured. Now in its third iteration (Series III, launched 2020), Perth Mint offers a vastly wider product range: 1/20 oz to 10 oz in gold, 1/2 oz to 10 kg in silver, with unlimited bullion-grade mintages and global distribution. The Royal Mint Lunar cannot match Perth Mint on scale, availability, or international liquidity.

The Royal Mint's advantage is specifically and narrowly the UK CGT exemption. A UK buyer choosing between the two series faces a concrete calculation: Perth Mint Lunar coins bought at lower premiums but subject to CGT on gains, versus Royal Mint Lunar at higher premiums (especially post-2020) but with zero tax on profits. For large gains over long holding periods, the CGT exemption dominates.

The 1 oz RAM Lunar offers a third option: lower premiums than either the Perth or Royal Mint versions, backed by Australia's national mint, but with neither the Perth brand recognition nor the Royal Mint CGT advantage. RAM's 50,000-piece silver mintage sits between Perth's uncapped production and the Royal Mint's limited post-2020 runs.

The Rwandan Lunar Ounce takes a completely different approach with its distinctive cracked-ice finish and very limited mintages (as low as 1,000 pieces for recent silver issues). It positions itself as the most collector-oriented zodiac programme, while the Perth and Royal Mint versions are primarily bullion products with collecting appeal layered on top.

For UK buyers, the Royal Mint Lunar remains the only zodiac silver coin with CGT exemption. For all other markets, Perth Mint dominates on liquidity and availability. The Royal Mint's post-2020 shift to proof-only production has widened the premium gap, making it a less competitive pure-bullion option than it was during the 2014-2020 bullion era.