SIPP Investment Options Explained: What You Can and Can’t Hold

By Team SalaryCalculate · 7/15/2025

A Self-Invested Personal Pension (SIPP) gives you greater control over your retirement savings — but with that flexibility comes responsibility. Understanding what you can and can’t invest in through a SIPP is essential for making informed, tax-efficient choices.

This guide explains the full range of SIPP investment options available and highlights the restrictions you need to be aware of.

✅ What You Can Hold in a SIPP

HMRC rules allow a wide variety of investments to be held in a SIPP, as long as they fall within the list of permitted investments. These include:

1. UK and International Stocks & Shares

You can invest in:

• Individual shares listed on recognised stock exchanges (e.g. London Stock Exchange, NYSE)
• AIM-listed shares (though riskier and often less liquid)

2. Investment Funds

• Unit trusts
• Open-ended investment companies (OEICs)
• Exchange-traded funds (ETFs)
• Investment trusts

Most mainstream SIPP platforms provide access to a large selection of funds, covering equity, bond, mixed-asset, and thematic strategies.

3. Bonds and Gilts

• UK government bonds (gilts)
• Corporate bonds
• International bonds, depending on the platform

4. Cash and Cash Deposit Accounts

You can hold uninvested cash in your SIPP. Some providers also allow fixed-term deposit accounts or notice savings accounts.

5. Commercial Property

You can use your SIPP to buy:

• Offices, warehouses, retail units, and industrial property
• Land (if it's for commercial use)
• Your business premises, allowing your company to lease it back from your SIPP

This can be a powerful tax-planning strategy, but comes with higher complexity and costs.

6. REITs (Real Estate Investment Trusts)

REITs offer property exposure without the hassle of direct ownership. These are eligible SIPP investments and can provide diversification and income.

7. Traded Commodities and Structured Products

Some SIPPs allow:

• Exchange-traded commodities (e.g. gold ETFs)
• Structured notes and capital-at-risk products (subject to provider approval)

❌ What You Can’t Hold in a SIPP

Not all investments are allowed. Holding non-permitted assets can result in heavy tax charges — up to 55% — so caution is essential.

1. Residential Property

You cannot hold:

• Buy-to-let houses or flats
• Holiday homes
• Any residential property, unless part of a collective REIT

Even if the intention is to generate rental income, HMRC treats residential property in SIPPs as unauthorised.

2. Personal Assets

Prohibited items include:

• Wine, classic cars, art, antiques, jewellery
• Any asset that provides personal enjoyment

Even if you don’t use it personally, owning such assets via your SIPP can trigger tax penalties.

3. Unlisted Shares (in most cases)

• Shares in private limited companies are usually not allowed unless you're using a specialist SIPP provider
• There’s a risk of falling outside HMRC rules, especially if the business is “connected” to you

4. Cryptocurrency

As of now, most SIPP providers do not allow direct crypto investments due to regulatory uncertainty and volatility. However, you can gain indirect exposure via ETFs (where permitted).

5. Tangible Moveable Property

Any asset that can be touched, moved, and enjoyed personally (like yachts or fine art) is not allowed.

⚠️ Grey Areas and Platform-Specific Rules

Some investments fall into grey areas, such as:

• Peer-to-peer lending
• Unregulated collectives
• Overseas property funds

These may be allowed by niche or bespoke SIPP providers but come with higher costs and regulatory risks.

Each SIPP provider has its own list of accepted investments. Platform rules may be stricter than HMRC's guidelines, so always check what’s permitted before investing.

Summary Table

Final Thoughts

A SIPP offers enormous investment flexibility, but staying within the permitted list is crucial to avoid penalties. Before making any unusual investment, always consult your SIPP provider or a regulated financial adviser.

For most people, building a diversified portfolio of funds, shares, and perhaps some commercial property is the simplest and safest route.