Gold in ISAs, SIPPs & Pensions: UK Investment Guide 2026
More UK investors than ever are looking to add gold to their portfolios as a hedge against inflation and market uncertainty. But can you actually hold gold in an ISA or pension? The answer depends on the type of gold and the type of wrapper. This guide covers exactly what is allowed, the tax advantages, and how to get started.
Important: This Is Not Financial Advice
This article is for educational and informational purposes only. It does not constitute financial advice, tax advice, or a personal recommendation. Pension and ISA rules are complex, can change, and depend on your individual circumstances. Before making any decisions about your pension, ISA, or investments, you should consult an FCA-regulated independent financial adviser. The value of investments, including gold, can go down as well as up. You may get back less than you invest.
Quick Answer
You cannot hold physical gold in an ISA, but you can hold gold ETFs and ETCs in a Stocks & Shares ISA for tax-free growth. Certain SIPPs do allow physical gold — bars of at least 99.5% purity and coins from the HMRC-approved list (Britannias, Sovereigns, Maple Leafs, Krugerrands, Philharmonics). The gold must be stored in an approved depository. Both wrappers shelter your gold gains from Capital Gains Tax.
Gold Investment Wrappers at a Glance
The table below summarises where you can hold different types of gold and the tax treatment of each wrapper:
| Wrapper | Physical Gold | Gold ETFs | Tax on Gains | Annual Limit |
|---|---|---|---|---|
| Stocks & Shares ISATax-Efficient | Not permitted | Permitted | No CGT | £20,000/year |
| SIPP (Self-Invested Personal Pension)Tax-Efficient | Permitted (HMRC-approved) | Permitted | No CGT + tax relief on contributions | £60,000/year (or 100% of earnings) |
| Workplace Pension | Not typically available | Limited fund options | No CGT within pension | Varies by scheme |
| General Investment Account | Permitted (any form) | Permitted | CGT on gains above £3,000 | Unlimited |
| Direct Physical Holding | Permitted (any form) | N/A | CGT applies (Sovereigns/Britannias exempt) | Unlimited |
Can You Hold Gold in an ISA?
The short answer is: not physical gold, but yes to gold-backed securities. HMRC rules for Stocks & Shares ISAs permit a range of qualifying investments including shares, bonds, and certain exchange-traded products — but they do not permit physical commodities.
This means you cannot place a gold bar or gold coin into your ISA. However, you can hold gold ETFs (Exchange-Traded Funds) and ETCs (Exchange-Traded Commodities) that are listed on a recognised stock exchange and backed by physical gold stored in vaults.
iShares Physical Gold ETC (SGLN)
Ongoing charge: 0.12% | Backed by allocated gold bars in London vaults
Invesco Physical Gold ETC (SGLD)
Ongoing charge: 0.12% | One of the largest gold ETCs in Europe
WisdomTree Physical Gold (PHAU)
Ongoing charge: 0.39% | Backed by physical gold held by HSBC
Royal Mint Responsibly Sourced Physical Gold ETC (RMAU)
Ongoing charge: 0.22% | Backed by gold stored at The Royal Mint
No Capital Gains Tax: Any profits on gold ETFs held within your ISA are completely free from CGT, regardless of the size of the gain.
No income tax on distributions: If your gold ETC is structured as a reporting fund, any deemed income is sheltered within the ISA.
Annual allowance: You can contribute up to £20,000 per tax year across all your ISAs (2025/26). This is the total across Cash ISAs, Stocks & Shares ISAs, Innovative Finance ISAs, and Lifetime ISAs.
Flexible access: Unlike a pension, you can withdraw funds from your ISA at any time without penalty (though some platforms charge exit fees).
Key Point: ETCs vs ETFs
Most “gold ETFs” are technically ETCs (Exchange-Traded Commodities) because they track a single commodity rather than a basket of assets. For ISA eligibility, the product must be listed on a recognised stock exchange (such as the London Stock Exchange). All the products listed above are ISA-eligible. Always check with your ISA provider that a specific product is available on their platform before investing.
Gold in SIPPs: Physical Gold in Your Pension
A Self-Invested Personal Pension (SIPP) offers much broader investment choices than a standard workplace pension, and certain SIPPs do permit physical gold. This is one of the few tax-advantaged wrappers where you can hold actual gold bars and coins — provided they meet HMRC requirements.
Not all SIPP providers offer physical gold as an investment option. Those that do typically partner with bullion dealers and approved depositories to facilitate the purchase, storage, and insurance of the gold on your behalf.
HMRC Requirements for Physical Gold in a SIPP
Warning: Unauthorised Payments
If you take personal possession of gold held in your SIPP, HMRC will treat this as an unauthorised payment. This can result in a tax charge of up to 55% of the value of the gold, plus a 15% surcharge on the pension scheme. Always ensure gold remains in the approved depository.
SIPP-Eligible Gold Coins
The following coins are widely accepted by SIPP providers that permit physical gold. All meet HMRC requirements for investment gold within a pension:
| Coin | Purity | Origin | Weight | Notes |
|---|---|---|---|---|
| Gold Britannia | 999.9 (24ct) | United Kingdom | 1oz (31.1g) | Also CGT-free as UK legal tender |
| Gold Sovereign | 916.7 (22ct) | United Kingdom | 7.98g | Also CGT-free as UK legal tender |
| Canadian Maple Leaf | 999.9 (24ct) | Canada | 1oz (31.1g) | One of the purest investment coins available |
| Krugerrand | 916.7 (22ct) | South Africa | 1oz (33.93g total) | Contains 1oz fine gold alloyed with copper |
| Austrian Philharmonic | 999.9 (24ct) | Austria | 1oz (31.1g) | Europe’s most popular bullion coin |
Double Tax Benefit: Britannias and Sovereigns in a SIPP
Gold Britannias and Sovereigns are already CGT-exempt as UK legal tender when held outside a pension. Inside a SIPP, they benefit from the pension tax relief on contributions as well. If you later take gold out of your SIPP (which would be taxed as pension income), the CGT-free status of these coins does not apply — all pension withdrawals are taxed as income regardless of the underlying asset.
Tax Benefits: ISA vs SIPP vs Direct Holding
Understanding the tax implications of each approach is crucial for making informed decisions. Here is how the three main options compare:
- ✓No CGT on any gains
- ✓No income tax on distributions
- ✓Flexible withdrawals at any time
- •No tax relief on contributions
- •£20,000 annual limit
- ✓Tax relief on contributions (20-45%)
- ✓No CGT within the pension
- ✓Physical gold permitted
- •Locked until age 55 (57 from 2028)
- •Withdrawals taxed as income
- ✓Tangible ownership — no counterparty risk
- ✓Sovereigns/Britannias are CGT-free
- ✓No contribution limits
- •Bars and non-UK coins subject to CGT
- •Storage and insurance costs
Which Is Best for You?
For most UK investors, a gold ETF in a Stocks & Shares ISA is the simplest and most cost-effective way to gain tax-free gold exposure. If you want physical gold and are a higher-rate taxpayer, a SIPP provides valuable upfront tax relief. If you want tangible gold you can access at any time, direct ownership of Sovereigns or Britannias gives you CGT-free gains with no wrapper constraints. Many investors combine two or all three approaches.
Gold ETFs vs Physical Gold: Pros and Cons
Advantages
- ✓Buy and sell instantly during market hours
- ✓Very low ongoing costs (0.12-0.40% per year)
- ✓No storage or insurance to arrange
- ✓Can be held in ISAs and SIPPs
- ✓Easy to invest small or fractional amounts
Disadvantages
- ✗Counterparty risk (provider solvency)
- ✗You do not physically own the gold
- ✗Platform fees may apply on top of fund charges
Advantages
- ✓Tangible asset with no counterparty risk
- ✓UK coins (Sovereigns, Britannias) are CGT-free
- ✓Can be held in certain SIPPs
- ✓Privacy — no platform or account needed
- ✓All investment gold is VAT-free in the UK
Disadvantages
- ✗Storage and insurance costs
- ✗Dealer premiums (3-10% above spot price)
- ✗Less liquid — selling takes more effort
How Much Gold Should Be in Your Pension?
There is no single “right” answer to this question. The appropriate allocation depends on your age, risk tolerance, other investments, and how close you are to retirement. Here are some general principles that are commonly discussed in financial literature:
5%
A modest allocation providing some portfolio diversification and inflation protection without significantly reducing growth potential. Often suggested for younger investors with long time horizons.
10%
A balanced approach that provides meaningful diversification. This is the mid-range of what many financial commentators suggest for a standard portfolio that includes equities and bonds.
15%
A more defensive stance, sometimes favoured by investors closer to retirement or those particularly concerned about currency devaluation and systemic risk. Higher allocations reduce exposure to equity growth.
Planning for Early Retirement?
If you're pursuing financial independence or early retirement (FIRE), your gold allocation strategy may differ. Our guide to the best FIRE resources in the UK covers calculators, withdrawal rate strategies, and how gold fits into a FIRE portfolio.
This Is Not a Recommendation
The allocation figures above are general ranges cited in financial commentary and educational materials. They do not constitute a personal recommendation for your portfolio. Your individual circumstances — including your overall wealth, other pension arrangements, risk tolerance, health, and retirement plans — all affect the appropriate allocation. Always seek advice from an FCA-regulated financial adviser before making pension investment decisions.
How to Get Started
Gold ETF in Your ISA
Open a Stocks & Shares ISA with a platform that offers gold ETCs (most major brokers do — Hargreaves Lansdown, AJ Bell, Interactive Investor, Vanguard). Search for a gold ETC such as iShares Physical Gold (SGLN) and buy shares within your ISA. Your gains will be completely free from CGT.
Physical Gold in Your SIPP
You will need a SIPP provider that specifically offers physical gold as an investment option. Not all do. Providers in this space include specialist SIPP administrators that partner with bullion dealers and approved depositories. Expect setup fees, storage fees (typically 0.5-1.5% per year), and minimum investment thresholds (often £10,000+). The gold is bought, stored, and insured on your behalf.
Gold ETF in Your SIPP
If you already have a SIPP with a mainstream broker, you can simply buy gold ETCs within it — just as you would in an ISA. This is the easiest way to add gold to your pension without the complexity and cost of physical gold storage. You receive pension tax relief on your contributions and pay no CGT on gold gains within the SIPP.
Frequently Asked Questions
No. HMRC rules do not permit physical gold bars or coins to be held in an ISA. However, you can hold gold ETFs and ETCs (such as iShares Physical Gold ETC or Invesco Physical Gold ETC) within a Stocks & Shares ISA. These funds are backed by physical gold held in vaults, giving you indirect gold exposure in a tax-free wrapper.
Yes, certain SIPPs allow you to hold HMRC-approved physical gold. The gold must meet strict requirements: bars must be at least 99.5% pure (995 fineness) from an LBMA-approved refiner, and coins must appear on the HMRC-approved list. Eligible coins include Gold Britannias, Gold Sovereigns, Canadian Maple Leafs, Krugerrands, and Austrian Philharmonics. The gold must be stored in an approved depository — you cannot take personal possession.
Holding gold in a SIPP provides several tax advantages: you receive income tax relief on your contributions (20% basic rate, 40% higher rate, 45% additional rate), there is no Capital Gains Tax on profits within the SIPP, and the first 25% of your pension pot can be taken as a tax-free lump sum from age 55 (rising to 57 from April 2028). Gold gains that would otherwise be taxable become entirely sheltered within the SIPP wrapper.
There is no single correct answer, as it depends on your personal circumstances, risk tolerance, and retirement timeline. A commonly cited range is 5-15% of your overall portfolio in gold or precious metals. Gold does not generate income (dividends or interest), so holding too much may reduce your long-term growth compared to equities. Consider speaking with an FCA-regulated financial adviser to determine the right allocation for your situation.
It depends on your priorities. A gold ETF in an ISA offers simplicity, no storage concerns, no CGT on gains, and low ongoing costs (typically 0.12-0.40% per year). Physical gold offers tangible ownership, no counterparty risk, and — if you buy UK Sovereigns or Britannias — CGT exemption outside any wrapper. Both approaches have merits. Many UK investors use gold ETFs in ISAs for convenience and physical coins for long-term holdings outside tax wrappers.
Check Today's Gold Prices
Whether you are investing through an ISA, SIPP, or buying physical gold directly, start by checking the current price of gold in the UK.
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Important Information
This content is for informational and educational purposes only and does not constitute financial advice, a personal recommendation, or an endorsement of any product or service. The value of gold and other investments can fall as well as rise, and you may get back less than you invest. Past performance is not a reliable indicator of future results.
London Gold Exchange is not authorised or regulated by the Financial Conduct Authority (FCA) and does not provide regulated investment advice. Before making any investment decisions, consider seeking advice from an independent financial adviser who is authorised by the FCA.
Tax treatment depends on individual circumstances and may be subject to change. The tax information provided is based on current HMRC guidance and could change in the future. Always verify tax information with HMRC or a qualified tax professional.