You can hold physical gold in a UK pension, but only in a self-invested personal pension (SIPP) or a small self-administered scheme (SSAS), and only as investment-grade gold bullion bars held by an approved custodian. Gold coins – including Sovereigns and Britannias – and silver bullion are treated by HMRC as taxable property inside a pension, which triggers heavy tax charges, while indirect exposure through gold ETCs, funds or mining shares is allowed in most SIPPs.
Which pensions can hold gold
Most workplace pensions and standard personal pensions invest only in a menu of funds chosen by the provider, so physical metal is not an option. Self-invested schemes give you a much wider choice of assets, and investment-grade gold bullion is the only physical commodity that HMRC allows them to hold without it counting as taxable property. Not every SIPP provider accepts bullion, though. Those that do usually work with a specific dealer and vault, and they set their own minimum amounts and fees.
What gold is allowed
- Bars, not coins. The gold must be investment-grade bullion in bar form. Providers generally require at least 995 fineness and bars from refiners accredited by the London Bullion Market Association (LBMA).
- Held by an approved custodian. The bars are bought in the name of the pension scheme and stored in a professional vault. You cannot keep them at home or take delivery while they are in the pension.
- Bought on market terms. As with any pension investment, the scheme must buy and sell at a fair market price, and you cannot sell your own existing gold to your pension.
How it works in practice
- Open a SIPP with a provider that accepts physical bullion, or check that your existing SIPP does.
- Pay in contributions or transfer from another pension. Tax relief is added to eligible personal contributions.
- Instruct the provider to buy bars through its appointed dealer. The bars are allocated to the scheme and vaulted.
- Receive statements showing the bars held, their serial numbers and current value.
- When you want cash, instruct a sale; the proceeds stay inside the pension until you draw benefits.
What is not allowed
Pension tax rules treat tangible moveable property – physical things such as coins, art and jewellery – as taxable property when held in a self-invested scheme. That includes bullion coins and other precious metals:
| Asset | In a SIPP or SSAS |
|---|---|
| Investment-grade gold bars (vaulted) | Allowed |
| Gold coins: Sovereign, Britannia, Krugerrand | Taxable property – tax charges apply |
| Silver, platinum and palladium bullion | Taxable property – tax charges apply |
| Gold jewellery | Taxable property – tax charges apply |
| Physically backed gold ETCs, gold funds, mining shares | Generally allowed, depending on the provider |
If a scheme holds taxable property, the member faces an unauthorised payments charge of 40%, possibly with a surcharge, and the scheme administrator can face a scheme sanction charge. This is why Sovereigns, which are attractive outside a pension because they are free of Capital Gains Tax, are not used inside one.
Tax rules for the pension itself
- Contributions. Personal contributions receive tax relief, up to 100% of your relevant UK earnings and within the annual allowance (£60,000 in 2026/27, lower for some high earners and for people who have already flexibly accessed a pension).
- Growth. Gains inside the pension, including on gold, are free of Capital Gains Tax.
- Withdrawals. You can normally take benefits from age 55, rising to 57 from April 2028. Usually 25% can be taken tax-free, subject to the lump sum allowance, and the rest is taxed as income.
- Inheritance. Under the Finance Act 2026, most unused pension funds will count towards Inheritance Tax for deaths on or after 6 April 2027.
Costs to compare
Gold in a SIPP has several layers of cost: the dealer’s spread when buying and selling, annual storage and insurance, and the SIPP provider’s own fees, which can include a set-up fee and a charge per transaction. Investment gold is exempt from VAT, so no VAT is added to the bars. On smaller sums the fixed fees can weigh heavily, so compare the total annual cost as a percentage of what you plan to hold. Our UK gold prices page shows current bar prices and spreads at UK dealers, and the methodology page explains how we collect them.
Physical gold or a gold ETC?
Many SIPP investors get gold exposure through exchange-traded commodities (ETCs) listed on the London Stock Exchange that are backed by gold held in a vault. You own a security that tracks the gold price rather than specific bars, but it is easy to buy and sell during market hours and the annual charge is a percentage of the holding. Gold mining shares and funds are another route; they are linked to the gold price but also carry company and stock-market risk.
Outside a pension, the comparison is different: Sovereigns and Britannias held personally are free of Capital Gains Tax and have no pension rules on access, but you get no tax relief on the money you put in.
Bottom line
In the UK, physical gold can be held only in a SIPP or SSAS, only as investment-grade bars and only in a custodian’s vault. Gold coins, silver and other physical metals count as taxable property and trigger tax charges. Gold ETCs, funds and mining shares are the more common way to hold gold in a pension. Pension tax relief, access ages and withdrawal tax apply whichever route you use.
Sources: GOV.UK: Tax on your private pension contributions · HMRC Pensions Tax Manual · LBMA
This is general information, not tax or investment advice.
Frequently asked questions
Can I hold gold in my pension in the UK?
Yes, in a SIPP or SSAS that accepts bullion. Only investment-grade gold bars held by an approved custodian are allowed as physical gold.
Can I hold gold Sovereigns in a SIPP?
No. Coins, including Sovereigns and Britannias, count as taxable property in a self-invested pension and trigger tax charges.
Can I keep pension gold at home?
No. The bars belong to the pension scheme and must be stored by a custodian until benefits are paid.
Is silver allowed in a SIPP?
Physical silver bullion is treated as taxable property. Silver exposure is usually held through exchange-traded products instead, where the provider allows them.
