Including gold in your pension
In August 2014, the Financial Conduct Authority (FCA) added physical gold bullion to its list of standard assets. This means that financial advisers can now assist clients wanting to include physical gold in their pension through regulated pension schemes such as a Self-Invested Personal Pension (SIPP) or Small Self-Administered Schemes (SSAS).
How can gold help?
If you’re a UK citizen looking to enhance your Self-Invested Personal Pension (SIPP) or Small Self-Administered Scheme (SSAS), you may be able to benefit from up to 45% tax relief on your purchase of gold Royal Mint Refinery (RMR) bars if you buy them through your pension scheme.
How does it work?
To do this, The Royal Mint offers both private individuals and pension scheme providers access to an online account solution, through which they can manage gold held within pension schemes.
Using the account is simple as only eligible products are available to purchase, and all gold is automatically stored in The Vault, The Royal Mint’s secure, onsite storage facility. Using our 24/7 buy back facility, account holders can also sell part or all of their gold holdings at any time, and the money will remain in their Royal Mint bullion account until they wish their funds to be returned to their pension fund.
What if I pay 45% tax?
If you pay a higher rate of tax at 45%, you’ll be able to reclaim this income tax through your self-assessment tax return. This means if you contribute to a pension scheme, you could enjoy a 45% tax relief on the contribution. In turn, the money you’ve invested into the pension scheme can then be used (with the appropriate tax relief) to invest in gold. Your gold also grows free of Capital Gains Tax as gold is CGT exempt.
Can I buy any kind of gold to invest in my pension?
Government regulations mean that the gold must meet the right standards to be eligible, and is required to be at least 99.5% purity. The Royal Mint’s gold bars have been confirmed as exceeding the required standards at 999.9 purity, which means that UK citizens can choose to buy them through a SIPP or SSAS and benefit from up to 45% tax relief on their gold purchases.
How can I get involved?
Firstly, you will need to contact your current pension provider or an independent financial advisor. They will be able to assist clients wanting to include physical gold in their pension planning through regulated pension schemes such as a Self-Invested Personal Pension (SIPP) or Small Self-Administered Scheme (SSAS). Once this is completed, simply follow the steps below to get started.
- Creating the account
SIPP Account (Private individuals): Download the Personal Account Application Form, complete it and submit to your pension provider.
SSAS Account: Download the SSAS Account Application Form and submit it directly to us for review.
Pension providers: Please contact our customer service team for further information.
- Funding the account
SIPP Account (Private individuals): Instruct the pension provider to transfer funds from the pension scheme into your Royal Mint account. Once funds are transferred, you can purchase gold online.
SSAS Account: The SSAS Administrator will transfer funds into your Royal Mint account. Once funds are transferred, you can purchase gold online.
Pension providers: On receipt of instructions from the individual, you may transfer the agreed funds into the individual’s Royal Mint bullion account.
SIPP Account (Private individuals): Log in to your Royal Mint bullion account to purchase eligible gold bullion.
SSAS Account: Log in to your Royal Mint bullion account to purchase eligible gold bullion.
SIPP Account (Private individuals): Log in to your Royal Mint bullion account, see the live gold price and decide just how much you would like to sell. Funds are transferred back into your account for future purchases or until you ask your pension provider to return the funds to the SIPP pension fund.
SSAS Account: Log in to your Royal Mint bullion account, see the live gold price and decide just how much you would like to sell. Funds are transferred back into your account for future purchases or until your SSAS Administrator requests for the funds to be withdrawn back to the SSAS.
Pension providers: Withdraw funds from the individuals Royal Mint account and transfer them back into the pension fund when requested to do so.
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