SIPPs: How to put gold into your pension using BullionVault

Gold SIPP introduction*

Buy gold bullion in a Self-Invested Personal Pension (SIPP) and, depending on your circumstances, the UK Government will pay up to 45% of the cost of your gold. Plus, any gains will be free of Capital Gains Tax (CGT). This page explains what you need to know, and introduces you to SIPP managers who can help you start your own Gold SIPP.

United States investors can also hold gold, silver, platinum & palladium in an Individual Retirement Account (IRA) using BullionVault.

Gold investing in a SIPP

Advantages

  • The big advantage is an income tax rebate paid to you this year by HMRC, when you fill in your tax return. It can be up to 45% of the cost of your gold.
  • The second big advantage is that your gold accumulates free of CGT. The normal rate is 20% of your gain over and above your personal allowance.

Important to know

  • You will not own your gold directly, your pension fund will.
  • The pension fund will introduce some admin fees, although they are usually very small.
  • You will probably pay some income tax when you draw down your pension upon retirement. For most retirees their income tax rate on retirement is paid at a lower rate, because their retirement income is less than their working income.

Getting started

All BullionVault gold meets the criteria acceptable for SIPPs. We supply more gold both directly to retail investors, and to their SIPPs, than anyone else. We are widely recognised as the safe and low-cost way to buy your gold, for whatever purpose.

The SIPP administrators who wrap your gold investment are FCA regulated financial businesses which are independent of BullionVault. Several SIPP providers enable their clients to buy through BullionVault. Get in touch with your own provider or one of the providers below to take the next step.

You can open more than one SIPP provided you stay within the designated limits. So even if your current SIPP manager won't support a gold investment you can add another that does.

What to expect

After completing the required forms to open your SIPP, the SIPP administrator will usually open a BullionVault account on your behalf. They will also give you instructions on how to send funds to them. The SIPP administrator then transfers funds to the BullionVault account ready to buy gold. The administrator may buy (and sell) gold on your instruction. Or they may expect you to buy and sell yourself. When you first contact the SIPP administrator, you should confirm which steps they expect you to complete and which they will take responsibility for.

Small Self-Administered Scheme (SSAS)

A SSAS is an occupational pension scheme often used by company directors on behalf of specific employees. They are most commonly used by private or family-run limited companies. Investment-grade gold bullion, as available on BullionVault, is a permitted asset in a SSAS.

A SSAS is often managed by a scheme administrator or scheme practitioner. If you are considering a SSAS, you should discuss the benefits (including how it may differ from a SIPP) with a qualified advisor.

Some of the SIPP providers listed above may also act as SSAS practitioners.

* This information is available to you to help your understanding of utilising “Investment Gold” in SIPPs, but please be advised that BullionVault 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. When providing our BullionVault services we will assume that you have decided to enter into any such SIPP transactions solely on the basis of your own evaluation of the same and any advice which you may receive from a professional financial adviser authorised under FSMA.

The information presented here is not intended to constitute legal or tax advice and should not be relied upon in lieu of consultation with your legal or tax advisor.