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Gold Bullion In SIPPS

For UK investors there was finally some good news for SIPP investments, as gold bullion was finally allowed to be included ( US citizens have had this option for some time under the IRS rules). The Inland Revenue has set out its definition of “investment grade” and for this to work with a pension scheme, an account needs to be opened by the pension fund with a bullion dealer who offers storage via their own vaults. As long as this method is used, it offers an interesting new investment opportunity. Investments made in gold bullion are topped up in the form of tax relief which in effect means you can claim up to 40% back assuming you are a higher rate taxpayer.

The gold bullion itself must be in the form of a bar or wafer and of a weight accepted by the bullion markets and with a fineness not less than 0.9995.  The key disadvantage with a SIPP is that you will not own gold directly, but as the beneficiary of a pension. As such, your holdings will be bound by UK pension laws and will not be available to you until you retire. Please be aware that if your SIPP exceeds £1.5m then you will be liable for tax at 55% on the excess.