Can I invest my pension in gold?
Generally, if you can touch, stroke or enjoy something then you can’t buy it with your pension.
This naturally rules out cars, tapestry and fine wine but also commodities and precious metals such as copper and silver. An exception, though, is gold (well, some types of gold).
Available through your SIPP or SASS
Gold Bullion is classified as a “standard asset” by the FCA and is permitted within your SIPP or SASS.
This follows a 2014 decision by the Financial Conduct Authority (FCA) to add gold bullion to its list of “standard assets”.
Physical gold offers proven wealth protection over the long term and for these reasons savers with pensions are increasingly adding gold to their pension portfolios.
Some SSAS and SIPP providers allow you to use your pension funds to buy investment grade gold bullion, provided the gold bullion is in a form acceptable to HM Revenue & Customs and you or anyone connected to you cannot get any personal use from the asset. The gold must be in the form of a bar or a wafer, gold coins and sovereigns do not qualify and the gold bullion must be professionally stored.
Investors should purchase small retail size gold bars for their pension to provide maximum liquidity and flexibility because it’s not possible to break one huge gold bar in half if they only wish to sell part of their holding.
HMRC define eligible gold as being standard LBMA (London Bullion Market Association) registered bullion products produced by LBMA ‘good list’ registered mints and refineries. The bullion must be a minimum of ‘four nines’ 99.99% pure gold.
Gold invested in your SIPP or SASS will be free from VAT and any profit on your investment will be CGT (Capital Gains Tax) free.
If you are a UK citizen then you can benefit from up to 45% tax relief when investing in gold as part of your personal pension.
For further information or assistance please contact us.
MyGoldPlatform is not authorised under the Financial Services and Markets Act 2000 (“FSMA”) nor by the Financial Conduct Authority, and as such cannot offer advice on the merits of entering into any SIPP transaction, nor can we endorse or recommend any particular SIPP administrator and accept responsibility for the services they provide.