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A Self-Invested Personal Pension (SIPP) can hold gold through two routes: a gold ETC (exchange-traded commodity) inside a standard investment SIPP, or physical gold bars and coins through a specialist SIPP provider. The ETC route is available through all major SIPP platforms; physical gold requires a specialist provider and the metal must meet HMRC’s minimum purity of 99.5%.
The pension tax relief on contributions — 20% for basic-rate taxpayers, up to 45% for additional-rate — is the main financial case for holding gold inside a SIPP rather than outside one.
At a glance
| Gold ETC in standard SIPP | Physical gold in specialist SIPP | Physical Sovereigns (outside SIPP) | |
|---|---|---|---|
| Pension tax relief | Yes | Yes | No |
| HMRC purity requirement | N/A | 99.5% minimum | N/A |
| CGT on gains | Sheltered inside pension | Sheltered inside pension | Exempt (legal tender) |
| Annual contribution limit | £60,000 | £60,000 | Unlimited |
| Accessible from | Age 57 (April 2028) | Age 57 (April 2028) | Any time |
| Platform availability | All major SIPP providers | Specialist providers only | Any UK dealer |
| Annual fees | Standard SIPP + ETC charges | Higher — custody + admin | None |
| IHT position | Generally outside estate* | Generally outside estate* | Part of estate |
*Subject to proposed April 2027 HMRC changes — see Tax section.
1. Gold ETC in a standard SIPP
What it is: An exchange-traded commodity such as iShares Physical Gold ETC (IGLN) or WisdomTree Physical Gold (PHAU), held as a financial instrument inside a SIPP. The ETC holds allocated physical gold in a custodian vault. You own units in the ETC, not the underlying bars directly.
Why people choose it: Every mainstream SIPP platform accepts ETCs — Hargreaves Lansdown, AJ Bell, Interactive Investor, Vanguard (via SIPP), and Bestinvest all offer access. No specialist setup is required. Pension tax relief applies in the normal way. The ETC structure means no VAT on purchase (ETCs are financial instruments, not physical metal), and gains are sheltered inside the pension wrapper.
What to be aware of: You own fund units, not physical gold. In a serious financial system failure, the ETC structure relies on the custodian and clearing system functioning normally. The annual ETC management charge (typically 0.12–0.25%) compounds over a long pension holding period. Physically-backed ETCs have a better track record than synthetic ones — check whether the specific ETC holds allocated gold.
Who this suits: Most investors who want gold in their pension. The practical default route. No specialist knowledge or providers required.
2. Physical gold in a specialist SIPP
What it is: Actual gold bars or coins held in a third-party vault, registered as assets of your SIPP. The metal is owned by the pension scheme, not by you personally. Custody is typically through a professional vault such as Loomis, Brinks, or the Royal Mint.
Why people choose it: Direct ownership of physical gold within a tax-advantaged wrapper — pension tax relief on contributions plus no CGT on gains. For investors who want real metal rather than a financial instrument, this is the only way to achieve it inside a pension.
What to be aware of: Very few SIPP providers offer this structure. Those that do include Dentons Pension Management, Talbot & Muir, AJ Bell (limited), Rowanmoor Pensions, and SIPP Club. Admin fees are significantly higher than a standard SIPP — typically £500–£1,000 per year for the physical metals custody arrangement, plus standard SIPP admin costs. The gold must meet HMRC’s minimum purity of 99.5%:
| Coin / bar | Purity | Qualifies for SIPP? |
|---|---|---|
| Gold Britannia (post-2013) | 999.9 fine | Yes |
| Gold Britannia (pre-2013) | 916.7 fine | No |
| Gold Sovereign | 916.7 fine | No |
| LBMA Good Delivery bar | 995 fine | Yes |
| PAMP 1oz bar | 999.9 fine | Yes |
| Standard retail bars (Baird, Royal Mint) | 999.9 fine | Yes |
Gold held inside a SIPP must not be physically accessible to the member — it must remain in third-party professional custody.
Who this suits: Investors with larger pension pots (typically £50,000+) who specifically want physical metal in their pension and are willing to pay materially higher ongoing costs for the arrangement.
3. SIPP vs holding gold outside a pension
For some investors, holding Gold Sovereigns or Britannias outside a pension is simpler and equally tax-efficient.
- Sovereigns and Britannias are CGT-exempt at any gain, any amount, with no pension lock-in. Accessible immediately. No admin fees.
- SIPP gold benefits from pension tax relief on the contribution (typically 20–45%), but the funds are locked until age 57.
The break-even analysis: pension tax relief makes the SIPP route more efficient if you hold gold for long enough that the compounding effect of the upfront relief outweighs the lock-in cost. For basic-rate taxpayers with a short time horizon, the Sovereign route is simpler. For higher-rate taxpayers contributing regularly over many years, SIPP tax relief is financially significant.
How people usually decide
Investors who already use a SIPP for pension savings typically add gold exposure via a gold ETC when they want gold in their retirement portfolio — it requires no additional setup and the tax relief applies automatically.
Investors who want physical gold primarily as a store of value outside the financial system tend to hold Sovereigns and Britannias directly — the CGT exemption and immediate accessibility make physical coins outside a pension the cleaner choice for that purpose.
The specialist physical gold SIPP is a niche option for those who specifically want both: physical metal and pension tax relief. The additional cost and complexity are only justified at larger portfolio sizes.
Tax and regulation
Pension tax relief: Contributions to a SIPP attract income tax relief. For basic-rate taxpayers, HMRC adds 20% to your contribution automatically (relief at source). Higher-rate taxpayers claim the additional 20% through self-assessment. Additional-rate taxpayers claim the further 25%. The maximum annual contribution is £60,000 or 100% of relevant UK earnings, whichever is lower (2026/27).
CGT inside the SIPP: Gold held inside a pension wrapper — whether as an ETC or physical metal — is not subject to CGT. Gains are sheltered within the pension.
IHT: Pension assets generally fall outside the estate for inheritance tax purposes. Nominated beneficiaries can receive the pension fund. From April 2027, proposed HMRC changes would bring inherited pension funds within the scope of IHT at 40% above the nil-rate band. This is subject to consultation and the final rules should be verified at the time of planning. See: inheritance tax on gold and silver.
Minimum pension age: Currently 55. Rising to 57 from 6 April 2028. Early access is only permitted in cases of serious ill-health or terminal illness.
Physical gold purity: HMRC requires a minimum purity of 99.5% for physical gold held in an investment-regulated pension scheme. Gold Britannias (999.9 fine) qualify. Gold Sovereigns (916.7 fine) do not.
This guide contains factual information only and does not constitute financial or pension advice. SIPP and IHT rules are subject to change — professional advice is recommended for material pension planning decisions.
Frequently asked questions
Can you hold physical gold in a SIPP? Yes, but only through specialist SIPP providers that offer precious metals custody. The gold must meet HMRC’s minimum purity of 99.5% — Gold Britannias (999.9 fine) qualify, Gold Sovereigns (916.7 fine) do not. In practice, most investors use a gold ETC inside a standard SIPP rather than physical metal.
Do Gold Sovereigns qualify for a SIPP? No. HMRC requires a minimum purity of 99.5% for physical gold held in a pension scheme. Gold Sovereigns are 91.67% fine (22 carat), which falls below this threshold. Gold Britannias (999.9 fine) and investment-grade bars of 995 fine or above do qualify.
How much tax relief do I get on a gold SIPP contribution? The same as any pension contribution. Basic-rate taxpayers receive 20% relief added automatically by HMRC (you contribute £800, the pension receives £1,000). Higher-rate taxpayers pay 40% tax on income and reclaim the additional 20% via self-assessment. Additional-rate taxpayers can reclaim a further 25%.
Can I access my gold SIPP before age 57? No. The minimum pension access age is 55 until 6 April 2028, then rising to 57. Early withdrawal is only permitted in cases of serious ill-health or terminal illness. Unlike physical coins held outside a pension, SIPP assets cannot be accessed before minimum pension age.
What happens to my gold SIPP when I die? Pension assets generally fall outside the estate for inheritance tax purposes and can be nominated to beneficiaries. From April 2027, proposed HMRC changes would bring inherited pension funds within the scope of IHT — this is subject to ongoing consultation and the final rules should be checked at the time of planning.