Holding Gold in a SIPP
Over the years physical gold has been proven to provide long term wealth protection, and for that reason, more and more pension savers are adding gold to their self-invested personal pension (SIPP) portfolios ready for when they retire.
We get a lot of enquiries from customers with existing SIPPs and customers looking to set up a new SIPP wanting to know more about investing in gold, so we’ve put together this informative guide covering the advantages, the caveats and some UK providers of gold bullions.
You’ll find the following topics with more information covered below…
Can I hold gold in my SIPP?
Yes, you can hold gold in a SIPP and it is now becoming more and more popular with SIPP investors. Gold is now the only commodity that can be physically held in a SIPP.
If you already have a self-invested personal pension you should check with the administrator of the scheme to see if it allows for gold. If you are unable to hold gold in your current SIPP you could potentially open another with a specialised gold SIPP administrator, as there is no limit to the amount of SIPPs you may have.
Having a SIPP with gold bullions is a very specialised area, so it would be prudent to seek advice from a pension expert with experience in physical commodities and holding them in a SIPP. Make an enquiry here or call 0808 189 0463 to speak to an expert.
What are the advantages?
Apart from the fact you (your SIPP) will own gold, which is the only physical commodity allowed to be held in a SIPP, you also receive significant tax breaks:
- You could get an income tax rebate of up to 45% of the cost of the gold you have invested in.
- The accumulation of gold is free from CGT (Capital Gains Tax).
Are there any disadvantages or caveats?
Most experts would say there are no disadvantages per se, but there are a few caveats of having SIPP gold, including:
- The pension provider may introduce further small admin fees.
- Bullion vault SIPP storage fees.
- The pension fund will own the gold, not you personally.
- HMRC require gold held in a pension to be securely vaulted, with a purity no less than 995 and held in bar form.
Who are the gold SIPP providers?
There are a few providers who specialise in holding physical gold in a SIPP. Bullion vault and Bullion by post are two large dealers in the UK market along with the Royal Mint who have recently come to market with their own proposition for holding gold in a SIPP.
Bullionvault for SIPPs
Bullion vault is one of the largest dealers of gold bullions and other precious metals in the UK market. Worldwide Bullion vault manages over 2 billion in assets for over 70,000 users. All the gold offered by Bullion vault is above the HMRC regulation of 995 and can be bought and sold in 1 gram increments. Account holders will have access to buy and sell online 24/7 and have the funds instantly available for withdrawal.
Bullion by post for SIPPs
Bullion by post is another large if not the largest online bullion dealer in the UK, based in Birmingham city centre and part of the jewellery quarter.
The gold bar purity from Bullion by post is stated to be 999.9 so again above the HMRC minimum set at 995. There is a storage solution offered separately by Brinks which starts from £10 per month.
Royal Mint bullion for SIPPs
The Royal Mint has two options for purchasing gold bullions in a SIPP. Firstly, you have the Royal Mint Refinery (RMR) where each bar is serialised and with quality of 999.9 (which is above the HMRC minimum of 995). These are available in sizes of 100g or 1kg and available to be stored in the Royal Mint vault.
There is also a more flexible option offered by the Mint which is called signature gold. You are able to buy portions of large 400oz gold bars my monetary value instead of fixed weights, these are also stored in the Royal Mint vault.
Which SIPP gold provider should I choose?
Which SIPP gold provider is right for you comes down to your needs and circumstances. Carrying out a whole-of-market comparison is necessary to make sure you end up with the best deal, and this is a service the pensions experts we work with can provide.
The advisors we work with can offer bespoke advice on SIPP gold and connect you to the provider that’s best positioned to offer the best deals to a customer with your specific profile.
Remember, approaching a SIPP provider yourself means having access to only their deals, and potentially missing out on better rates elsewhere. Online rates tables are not recommended either, as they aren’t tailored to your profile and often give the most prominent placement to sponsored products.
Speak to a pensions expert
With the purchasing of gold bullions to hold in a SIPP being such a specialised area coupled with the choice of providers it would be prudent to speak with an expert pensions advisor, like the ones we work with.
An expert pension advisor with experience in this area would be able to do a comparison of the providers and give you the best advice for your circumstances.