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Do United Kingdom tax rules allow you to hold Bitcoin in a self-invested pension plan?

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    No. I seriously doubt if any of the firms providing SIPP would allow you to. My next question is why would you want to do so ? Bitcoin for pension, seriously ?? – DumbCoder Mar 17 '14 at 9:39
  • @DumbCoder Lots of reasons why. Could be a big bet on Bitcoin being more widely adopted i.e anticipating Bitcoin denominated annuities. Or could just be a punt on Bitcoin appreciating (free of capital gains tax in a SIPP). – oks Mar 17 '14 at 16:46
  • So you intend to loose your pension on a whim ? Is that why people go for a pension, to take a punt ? Bitcoin denominated annuities Not going to happen so quickly on an asset which is outside the control of anybody. – DumbCoder Mar 17 '14 at 16:53
  • @DumbCoder doesn't have to happen quickly. Pensions are long term! – oks Mar 17 '14 at 17:03
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    @DumbCoder That is assuming the pension is 100% invested in bitcoin. I would surmise that bitcoin would represent the small percentage of high-risk investment that people tend to have. – Adam Houldsworth Mar 18 '14 at 13:37
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Prudential has a list of allowable investments for their SIPP, though I'm not sure if these are industry standard: http://www.pruadviser.co.uk/new_pdf_folder/FRPM10011.PDF

Looks like if they consider Bitcoin a commodity, it will probably not be allowed. But the UK is considering regulating Bitcoin as a currency, which means that you may be able to have it qualify under this rule:

  • Deposit accounts in any currency with an EEA authorised deposit taker opened by an appointed investment manager.

Of course it will be hard to fit those standards. It looks like some countries in the EEA do regulate Bitcoins so you may need to open an account with them.

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Yes, you can do this. I have a SIPP with Hargreaves Lansdown and I transferred one of my smaller old GMP pots to start it. I took the £8,000 transfer and put it in the the two XBT BITCOIN ETFs with HL.

  • This was attracting "not an answer" flags, which didn't seem correct to me as it does answer the question. I've edited it to remove some of the irrelevant points. If you still think it's not an answer, please use a comment or a custom flag to explain why. – Ganesh Sittampalam Sep 16 '17 at 17:39
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    No, but you can use an exchange traded fund as a proxy for Bitcoin is really quite a sensible answer. If you are going to take a punt on Bitcoin, might as well do it tax efficiently. Could be a little less anecdotal though, – richardb Sep 17 '17 at 11:39

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