Hargreaves Lansdown "playing hardball"

bigadaj

koru wrote: »

Why CGT? If you transfer in specie, no disposal (and no stamp duty and no risk of adverse market movement). If you sell in HL and repurchase on new platform, B&B rules say that the cost of your disposal is the cost of repurchasing them, so very unlikely to trigger a big gain.

I've currently got this problem with another platform was going to transfer to cavendish. However I have a chargeable capital gain tax due this year, and my two unwrapped funds aren't held by cavendish, so I'm waiting til April for the change.

I'd assume that gadget has maximised the cgt free amount already this year and so is waiting to use in April.

gterr

jamesd wrote: »

I suggest that anyone who is having trouble with HL works with others in a new topic here to gather appropriate references and responses to make life easier for all and help the FOS decide on all of the cases at the same time. Though it'd be really nice if HL made it unnecessary.

OK, I will start new thread "Leaving HL without transfer charges" for people to gather in and contribute

qwesterr

What's the new charge for my S&S ISA? It's around 20k in a cheap tracker.

DeepSporran

koru wrote: »

Why CGT? If you transfer in specie, no disposal (and no stamp duty and no risk of adverse market movement). If you sell in HL and repurchase on new platform, B&B rules say that the cost of your disposal is the cost of repurchasing them, so very unlikely to trigger a big gain.

What if you dispose of a fund held in bundled units and then buy back the same fund in clean units ? That's what I'd need to do moving from H-L to, say, Alliance Trust ( who no longer sell bundled units for new purchases.) For CGT purposes would that be classed as disposing of and repurchasing the same fund ? Or would the fact that the type of unit is different mean that the 2 transactions are not linked and CGT might be liable on the disposal proceeds ?

I could wait till March when H-L will accept instructions to convert the unbundled funds into clean funds with no charges or CGT liability (according to their booklet page 9) but not sure I want to wait that long.

The H-L booklet goes on to suggest that selling bundled and buying clean units yourself may create costs and CGT, but it's a bit vague, hence my original question above .

Totton

Not great I know, but as far as I am aware HL still do not offer anything for cash held on account.

It is a very low rate but yes HL do pay interest on cash.

dunstonh

What if you dispose of a fund held in bundled units and then buy back the same fund in clean units ?

It must be done as a switch or conversion to avoid CGT. A sale and buy back would be classed as a disposal for CGT purposes. Selling, moving platform and buying back a clean class would be CGT chargeable.

Froggitt

But converting to clean and moving in specie would not be CGT chargeable.


Or moving in specie and then converting to clean.

Froggitt

Totton wrote: »

It is a very low rate but yes HL do pay interest on cash.

Isnt it 3% below base rate, ie nothing?

grey_gym_sock

Froggitt wrote: »

Minimal as in I've never switched a fund with HL.

ok, that really is minimal ... if you never switch, then perhaps the way i'd look at it is that you'll just have to pay 1% once when finally cashing in your investments - so it's a 1% exit fee.

I also don't understand your maths!!!

i meant: if it costs 2% to switch, and you switch every 4.5 years, then in an average year your switching costs are 2% / 4.5 = 0.44% ... which is about the same as HL's 0.45% p.a. charge (though share centre also charge the fixed c. £60 p.a.).

guitarman001

So what is the best alternative for somebody holding only Lifestrategy funds (and possibly some American shares)? Christ, it seems every other couple of months we have to change provider!