H-L Loyality Bonus

sorcerer

Anybody know if Hargreaves Lansdown has stopped it's loyality bonus because I haven't had one for April yet. They normally come though at the beginning of the month.

srcandas

Last paid loyalty bonus 5th April. Previously 31 March and 2 March.

Seems fairly random. Could it be quarterly but paid individually for each fund manager?

But tx for raising it. I'll keep an eye on it.

sorcerer

Interesting because my last one paid was also the 5th April, I was expecting one around 5th May ish (like you said sometimes they are not always on time). I think I will wait another week or so, then ring them up to ask what is happening.

Stompa

I've never thought to check before, but I seem to get some added monthly, typically at the beginning of each month (between 1st & 8th).

Oddly though, I seem to have had a few quid added to my S&S ISA account on 5th April, which is labelled as 'Loyalty Bonus March 2013'. I've absolutely no idea where that has come from, and why it has not been added to my loyalty bonus. It's not something I've seen in previous years.

Sparky47

Stompa wrote: »

Oddly though, I seem to have had a few quid added to my S&S ISA account on 5th April, which is labelled as 'Loyalty Bonus March 2013'. I've absolutely no idea where that has come from, and why it has not been added to my loyalty bonus. It's not something I've seen in previous years.

I had the same thing, although mine shows under Loyalty Bonus as a transfer out and then under my ISA account as a transfer in.
I think they have now changed things so that the loyalty bonus is automatically credited to the account it was earned under.

Not sure why there has been no payment since 5th April although I have some shown as pending.

vulcan59

From the Key Features document of the Vantage account.

How do I receive my initial savings and annual loyalty bonuses?
• In most cases the initial savings are used to reduce the price you pay for each unit and you will receive your saving in extra units.
• The annual loyalty bonus earned on the Vantage Fund & Share account is paid into your Loyalty Bonus Account which is held alongside your other accounts. From April 2013 all ISA loyalty bonuses will be paid directly into the ISA, rather than a separate Loyalty Bonus account as today.

• Loyalty bonuses in the Fund & Share Account are paid net of basic rate tax. We expect non-taxpayers will be able to reclaim the tax. Higher and additional rate tax payers will have further tax to pay via their tax return.
• Loyalty bonuses in the Vantage ISA are tax-free and paid gross.

sorcerer

i wonder if they have done this because the government are trying to take tax on the loyalty bonus.

Totton

There was something out recently indicating HL would separate the ISA and no-ISA loyalty bonuses because of HMRC.

grey_gym_sock

this change seemed to be connected with HMRC saying that rebates would become taxable if they're not in a tax-exempt account.

i'm not sure if the point was that loyalty bonus for an ISA would be taxable if paid outside an ISA (which isn't logical - the dividends/interest aren't taxable, even if they're paid out) ... or if HMRC had also clarified that rebates wouldn't count as extra ISA subscriptions, so that meant HL were allowed to add them to the ISA.

Stompa

You'd think that they would have informed customers of this change. Then again, perhaps they did, they send me so much junk I just throw most of it in the bin without reading it!

rpc

It was a sidebar in one of the Investment Times. They promised an announcement on the matter, so I actually had to unwrap that issue before chucking it...