What's the story with cryptoassets and pension contributions?
Under current rules cryptoassets are not considered to be currency or money - this means that you cannot make a tax relievable pension contribution using crypto.
There is nothing inherently wrong with making a contribution in Bitcoin or other tokens - but if it's a personal pension contribution you wouldn't get relief for any tax you've paid on your earnings. Most (if not all) individuals would be better off making the contribution in fiat currency, in order to secure any available tax relief.
Within the pension portfolio, depending on the rules of the specific pension scheme it may be possible to invest part of the portfolio into crypto-related assets. Options are fairly limited at the moment, but there are some crypto exchange traded funds available now. Crypto investments within a normal registered pension scheme will be subject to the normal pensions tax rules, just like other more traditional forms of investment such as stocks, bonds and commercial property.
We're not giving investment advice here by the way - and it's important to appreciate that responsible investors would not allocate more than a small proportion of their portfolio to crypto investments, perhaps 1% or 2% only. Crypto investment for the time being remains highly speculative and individuals who do invest should be prepared to lose their entire investment. You have been warned!
Click through to read our other articles on crypto taxation.