Leaving HL without transfer charges

naedanger

riccaricca wrote: »

Thanks for the response "naedanger". I'm researching the best company to transfer to.
As I've never transfered any funds before, will the funds have to be sold and then bought again in the new company or are they moved as units?
I'm worried as they are ISA's. Also if they have to be sold and then reinvested would that not lose money?

Rollinghome has answered the question.

Just be sure on the application form to tick the box that says you want your assets transferred in specie. (You may need to tick a box against each and every holding.)

Also depending on who your new provider is, you may find they don't offer all your existing funds. In which case you may need to sell and buy into another replacement fund.

Any cash needs to be transferred (and not withdrawn from your current ISA and repaid to the replacement ISA) because of the limits on the amounts that can be paid into an ISA in any tax year. But I suspect you are well aware of that.

macmuck

Rollinghome wrote: »

When funds are re-registered, i.e. transferred in specie, they should remain just as they are and in the same class with no need for selling, provided of course they offer the fund.

If you remain undecided you could consider Fidelity which although unlikely to be the cheapest has no transfer out fees so you could reconsider when the dust settles.

SO, if they do not offer the fund, does this mean it will need to be cashed before transfer from HL? Ta

No REply yet to my formal complaint yet either..

macmuck

Oh sorry Nae....you just answered that.

But dont we then pay cgt or another tax as we close this holding into cash? Will HL cover this cost?

naedanger

macmuck wrote: »

Oh sorry Nae....you just answered that.

But dont we then pay cgt or another tax as we close this holding into cash? Will HL cover this cost?

The person asking the question was in an ISA so CGT does not arise.

However for accounts that are not ISAs of SIPPs then yes you could have a CGT liability if you switch funds, though you can make capital gains of over £10k (can't remember the exact figure) in any tax year before CGT is payable.

If you do have CGT to pay then I doubt you would be able to get HL to pay it. As the CGT may well be a lot bigger than the exit costs or ongoing charges you may be better leaving those assets with HL or finding another provider that offers them rather than switching out.

Musicman

Rollinghome wrote: »

There currently aren't any fees for transferring out in cash: the new fees for closing accounts and for cash transfers aren't to be imposed until 2 June. To agree to waive any charges for transfers out but only mean where there aren't any charges anyway would be a tad too misleading even for Hargreaves Lansdown. I hope.

I have looked for this information but cannot find it anywhere can someone provide a link?

Thanks

andybe58

Hi all

New to the forum, but thought I would add my thoughts. I, and my wife have pretty much our life savings with HL. We are definitely going to transfer- probably Charles Stanley for ISA's (low % fee) and Fidelity for SIPP (transparent charges, no future exit fee, lower charge than HL). These are not necessarily the cheapest but they are the clearest - for me anyway...and they will both be cheaper than HL. I am not prepared to wait around for possible reductions in some fund charges with HL. I only invest in funds. but do have IT's direct with IT providers.
Anyway, I sent off 2 secure messages to HL last night - one to close 2 old empty accounts and one to send the official complaint letter as printed here re. exit charges.
Received a reply re. old accounts this morning. Both accounts have been immediately closed. No reply re. official complaint. So I guess then are mulling it over!
I have actually transferred all my fund holdings into one fund - a top managed balanced fund - so that if I have to pay the exit fees they will be small. But I don't think I should pay anything. I change banks a lot, but there is no charge there! By the way, Fidelity will refund any charges incurred when transferring.
Anyway. I will wait and see what the response is. I would like to thank all those on this forum for their good advice

turkeywelder

If I have recently started investing with HL and have a small amount of holdings (<£1000 in funds) , would it be cheaper/easier just to cash in the whole lot in and start again with someone else? Will HL still charge me for closing the account?

hyposmurf

turkeywelder wrote: »

Will HL still charge me for closing the account?

From 2nd June you'll be charged for account closure before that you shoudn't.

hyposmurf

andybe58 wrote: »

Hi all

I change banks a lot, but there is no charge there! By the way, Fidelity will refund any charges incurred when transferring.

That's what I was thinking. H&L say there are costs involved with the transfer, but I've never been charged to transfer a cash ISA, savings account or current account.

grey_gym_sock

turkeywelder wrote: »

If I have recently started investing with HL and have a small amount of holdings (<£1000 in funds) , would it be cheaper/easier just to cash in the whole lot in and start again with someone else?

the only issue would be if you've subscribed to a S&S ISA in this tax year. if you close it, you then couldn't subscribe to a new 1 until 6 april. though you could close it just before 6 april, and open a new ISA elsewhere on 6 april. or you could do an ISA transfer in cash, which costs nothing (before 2 june).

hyposmurf wrote: »

H&L say there are costs involved with the transfer, but I've never been charged to transfer a cash ISA, savings account or current account.

but then cash ISAs and savings accounts rarely have any explicit charges. the charges are implicit - in the difference between the interest rates they pay you and the interest rates they charge. whilst platforms are now being forced to move to explicit charges.