Gold for Pensions FAQs
What is a SIPP?
A Self-Invested Personal Pension (SIPP) is designed to help to help you accumulate a sum of money which is then used to provide you with an income after you reach your chosen pension age. It can give you greater choice and control than alternative pensions enabling you to choose your own investments. You can pay one-off or regular contributions into the SIPP to take advantage of the generous tax privileges available. You can also transfer existing pension benefits into the SIPP.
What is a SSAS?
A Small Self Administered Scheme (SSAS) is a pension trust set up by a limited company or a partnership. SSAS are primarily set up by private and family run limited companies for the benefit of the owner directors and senior employees. The members are also trustees and so have control and flexibility over the Scheme assets and investment choices in a tax efficient environment.
Can I invest in gold using my SIPP/SSAS?
Yes, investment grade physical gold has been eligible for inclusion in Self-Invested Personal Pensions (SIPP) and Small Self-Administered Schemes (SSAS) since 2006. Depending on your circumstances, the UK Government will pay up to 45% of the cost of your gold. In addition, any appreciation will be Capital Gains Tax (CGT) exempt subject to rules and guidelines set out by by HMRC.
Which gold products can I buy within my SIPP/SSAS?
The HMRC requirement is that only investment grade gold bars with a purity of no less than 995 are eligible to be held within your SIPP/SSAS. When you buy Gold from Sharps Pixley, the bars have a purity of 999.9 and are supplied by a London Bullion Market Association (LBMA) accredited 'Good Delivery' refinery.
Can I buy silver, platinum, palladium or gold coins for my SIPP/SSAS?
No, it is not possible to hold silver, platinum, palladium or gold coins within your pension.
Can I take delivery or collect the gold bullion in my SIPP/SSAS?
It is the HMRC requirement that the bullion held in your SIPP/SSAS must remain within the vaulting arrangement.
What does it cost to buy?
The price over the London interbank spot price offered will depend upon the size of bar. For a kilobar you will pay approximately 1.5% over the market price (depending upon market conditions).
What does it cost to sell?
When you choose to sell, we will buy back from you at a 1% discount to the interbank spot price. Upon sale, the proceeds plus or minus storage fees will be returned directly to your trustee’s bank account on the same day.
How does Storage work and what are the costs?
Storage fees are equivalent to 0.3% p.a based on the prevailing market value of the gold held. An initial term, two years storage, must be paid in advance at time of purchase and Sharps Pixley add a 0.6% premium to the purchase price to reflect this fee. Any fees thereafter will accrue and be settled from the sale proceeds when the gold is subsequently sold. All gold held within your SIPP/SSAS will be held by Sharps Pixley in their vault as per the requirement of HMRC. This is 100% allocated and segregated storage in a highly secure vault insured through JLT, a leading Lloyd’s of London broker.
Will my pension gold be independently audited?
Your pension gold will be independently audited bi-annually by Deloitte and Alex Stewart International, a leading gold assayer and member of the London Bullion Market Association (LBMA).
Can Sharps Pixley provide investment or financial advice to you?
No, we are not regulated to provide investment and financial advice to either the trustees or the members. You can seek your own independent financial advice via your existing financial adviser. If you do not already have one, you can find details of advisers local to you at www.findanadviser.org or contact the Personal Finance Society on 020 8530 0852. We are happy to work with other professional advisers to implement investment decisions and strategies.
What happens if I die?
If you die, your pension scheme benefits will be paid to your beneficiaries – either as a lump sum or as an ongoing pension. You’ll need to complete a nomination form declaring who you want the payments to go to. The tax treatment of any death benefits paid from your pension scheme will depend on your circumstances. These are paid at the discretion of your pension provider the Scheme Administrator.
When can I take benefits?
You can start to take retirement benefits from age 55. If you are in serious ill health, or in a recognised qualifying occupation, you may be able to take benefits earlier.
Can I have a tax free lump sum?
This is now known as a pension commencement lump sum. You will usually be able to take up to 25% of your scheme entitlement (or 25% of your available Lifetime Allowance if it is lower) as a pension commencement lump sum which is tax-free.
How can I get started ?
Instruct your Independent Financial Advisor (IFA), wealth manager or pension provider to contact us or enquire directly.
Please contact us on +44 (0)207 871 0532 or email@example.com or complete this form to register your interest