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Old coins – personal use asset exclusion

15 October 2014   (0 Comments)
Posted by: Author: SAIT Technical
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Author: SAIT Technical

Q: I’ve heard from various clients, that there is apparently a clause that excludes gold coins minted in the 1800’s from capital gains tax. I was unable to confirm this statement made by some of my clients. Will you be able let me know if there is any truth to this claim. 

A: The definition of an 'asset' in paragraph 1 of the Eighth Schedule includes ‘any coin made mainly from gold or platinum’.  It would be the definition of ‘currency’ that would exclude an old coin or note no longer in circulation.  It would therefore not be currency.  It follows that notes or coins held as collectors’ items are assets for CGT purposes.  However, such collectors’ items if held by an individual constitute personal-use assets under paragraph 53(2), and any gain or loss on their disposal must be disregarded [paragraph 53(1)].

A ‘personal use asset’ does not include a coin made mainly from gold or platinum of which the market value is mainly attributable to the material from which it is minted or cast – see paragraph 53(2) in the Eighth Schedule and paragraph in SARS’s capital gains guide.  SARS explains it as follows:

"A number of assets used for non-trade purposes are, however, excluded as personal-use assets under para 53(3), for example, gold or platinum coins (other than collectors’ items)…”


Nothing in this query and answer should be construed as constituting tax advice or a tax opinion. An expert should be consulted for advice based on the facts and circumstances of each transaction/case. Even though great care has been taken to ensure the accuracy of the answer, SAIT do not accept any responsibility for consequences of decisions taken based on this query and answer. It remains your own responsibility to consult the relevant primary resources when taking a decision.


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