Iii

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  • planteria
    planteria Posts: 5,321
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    ozzage wrote: »
    ...They made me an offer but it's uncapped...Currently assessing AJ Bell...

    capped is clearly the way to go for a substantial investment.

    will be interested to see whether you decide to transfer to AJ Bell.

    i was tempted by The Share Centre prior to following le loup's advice and transferring to iii ;)
  • ozzage
    ozzage Posts: 518 Forumite
    planteria wrote: »
    capped is clearly the way to go for a substantial investment.

    will be interested to see whether you decide to transfer to AJ Bell.

    i was tempted by The Share Centre prior to following le loup's advice and transferring to iii ;)

    Just had a quick look, but I don't like their dealing charges. They are percentage based so if you're doing larger sums it doesn't work out very well.

    Even the "regular investing" option costs 0.5% so anything substantial starts to get expensive. That's compared to a flat £1.50 for both III and AJ Bell.

    The platform fees are good though.
  • planteria
    planteria Posts: 5,321
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    ...not sure if their offer has changed, i don't recall the % dealing charge, but maybe my decision to move from HL to iii wasn't entirely le loup's fault.
  • le_loup
    le_loup Posts: 4,047 Forumite
    planteria wrote: »
    ...not sure if their offer has changed, i don't recall the % dealing charge, but maybe my decision to move from HL to iii wasn't entirely le loup's fault.
    Oh yes it was.
    I hypnotized you and made you go with them.
    However as I was so wrong I did pay you thousands in compensation. But you still haven't cashed my cheque.
    There's not a lot more I can do but, like the Ancient Mariner, I tell the tale to all who will listen:
    Don't shoot the albatross; don't invest with III.
    Don't shoot the albatross; don't invest with III.
    Don't shoot the albatross; don't invest with III.
    Don't shoot the albatross; don't invest with III.
  • This is the weird response I got today from III to the message I sent them 8 days ago asking about the tax credit - or rather lack of receipt thereof - on the Fidelity Moneybuilder Income dividend for August received in my ISA (on 18th September!)

    'You are not due a reclaim on the August dividend as you purchased your units on 29 July which means they are Group 2 units which do not generate tax credits. The first tax credit entitlement would be when the dividend has moved onto the next accounting period. I hope this helps to make sense of your tax reclaims.'

    Surely this is twaddle isn't it? Firstly the bit about the units not generating tax credits, since they have actually paid me tax credits for the September and October dividends. Secondly, surely any and all dividends I receive in my ISA for bond funds and suchlike from which 20% tax has been deducted are fully reclaimable aren't they?! Masonic you are good with this sort of stuff, what do you reckon? Anyway I have told them I'm not buying their explanation. I love the bit about hoping this helps to make sense of my tax reclaims....yeah right III, clear as day, whoops - mud!!
  • Linton
    Linton Posts: 17,045
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    juliamarsh wrote: »
    This is the weird response I got today from III to the message I sent them 8 days ago asking about the tax credit - or rather lack of receipt thereof - on the Fidelity Moneybuilder Income dividend for August received in my ISA (on 18th September!)

    'You are not due a reclaim on the August dividend as you purchased your units on 29 July which means they are Group 2 units which do not generate tax credits. The first tax credit entitlement would be when the dividend has moved onto the next accounting period. I hope this helps to make sense of your tax reclaims.'

    Surely this is twaddle isn't it? Firstly the bit about the units not generating tax credits, since they have actually paid me tax credits for the September and October dividends. Secondly, surely any and all dividends I receive in my ISA for bond funds and suchlike from which 20% tax has been deducted are fully reclaimable aren't they?! Masonic you are good with this sort of stuff, what do you reckon? Anyway I have told them I'm not buying their explanation. I love the bit about hoping this helps to make sense of my tax reclaims....yeah right III, clear as day, whoops - mud!!

    Suggest you read this thread which seems to explain the area. It is very confusing. Basically since you bought part way through the payment month the amount you were paid for August is regarded as payment from capital because you didnt own the fund when the shares owned by the fund paid their dividends, and it is these dividends from which the tax credit is generated. You can hardly claim a tax credit for something that happened when you didnt own the fund.

    "Group 2" is the status of fund units that were bought part way through a distribution period.

    Funds paying dividends are different to directly owned company shares paying dividends.

    Dont blame everything on iii!
  • le_loup
    le_loup Posts: 4,047 Forumite
    edited 8 January 2015 at 2:18PM
    Agree with Linton and III ... me agreeing with III!!!
    The first divi payment from a fund is part divi and part capital repayment. There is an HRR&C term for the capital bit, which name I can't remember but it does exist.


    Edit: Found it: EQUALISATION
  • Linton
    Linton Posts: 17,045
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    Its not just tax credits where this could cause confusion. I have (mistakenly as I see now) raised the question of a missing ISA tax repayment, ie cash rather than a credit note, with iii. It was the first one after buying an INC fund.

    Sorry iii!
  • juliamarsh
    juliamarsh Posts: 365
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    Linton wrote: »

    Ok thanks for that, I have read the thread and although it is mainly dealing with CGT, and accumulation units as opposed to income units I get the point that you are making. However, correct me if I am wrong but what I understand from it is that the portion of the dividend for the part of the month before you buy the units is paid as equalisation from capital but the portion for the part after you made the purchase is paid as actual dividend, therefore surely that part is eligible for tax relief. The fund pays its dividends on the 25/26th of each month and I bought my holding on 29th July. Therefore should I not be eligible for a tax credit on the part from 29th July - 25th August? Unless the dividend that becomes payable 25th August is actually based on the previous month, before I bought them. Complicated - perhaps I had better ask Fidelity and make sure I get my facts straight!:)
  • juliamarsh
    juliamarsh Posts: 365
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    edited 8 January 2015 at 2:31PM
    Just looked it up on trustnet - ex dividend date was 1st August, payment date was 26th August, I bought them on 29th July so should I get the tax credit for the period 29th July - 26th August? What does everyone reckon?
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