Leaving HL without transfer charges

masonic

utockin2me wrote: »

Your presumption may be wrong. According to HRMC rules, once an ISA is cashed in, or allowance not used, it cannot be reinstated or `back applied`.
<snip>

HMRC rules do allow ISA managers to "repair" ISAs where they have made a mistake and not carried out the customer's instruction correctly.

http://www.hmrc.gov.uk/isa/isa-guidance-notes.pdf

10.31c Cash withdrawn from an ISA in error by the ISA manager may be reinstated (along with any additional compensation to cover lost interest or dividends) without reference to SSO where the investor (or the investor’s agent) gave the manager clear instructions and the manager misinterpreted these instructions and
 withdrew money from (or closed) the investor’s ISA in error, or
 withdrew money from (or closed) another investor’s ISA in error. (For example, John Smith instructs the manager to remove £3,000 from his ISA and the manager instead removes £3,000 from James Smith’s ISA and pays it to John Smith.)

However, managers may not reinstate where the investor's (or the agent’s) instructions were unclear or were capable of being misunderstood.

Managers should retain evidence justifying their decision to reinstate cash withdrawn from an ISA in error without reference to SSO with the investor’s ISA records and make them available at the next audit to the HMRC auditor.

Doctor_Who

masonic wrote: »

HMRC rules do allow ISA managers to "repair" ISAs where they have made a mistake and not carried out the customer's instruction correctly.

I can confirm this is correct.....a few years ago HL screwed up payments I made to my ISA and SIPP (wrong payment to wrong account). Once pointed out they quickly apologised for their mistake and put the accounts back to the state they would have been in if the mistake hadn't happened.

utockin2me

masonic wrote: »

HMRC rules do allow ISA managers to "repair" ISAs where they have made a mistake and not carried out the customer's instruction correctly.


To fellow posters
I stand, humbly, corrected. Thank you.
Melissnin2u.

yatinsardana

So I've sent HL the template message that's going around the forum saying I want to leave as they've upped their charges and i want my leaving charges waived.
I've spoken to II and they say I might as well just wait until the new year and then make an account with them and fill out the transfer form in order to start the whole moving process. I'm hoping HL will reply in time to say charges can be waived (if they don't I shall certainly be needing your help in how to move further).

I'm due a dividend pay out at the end of April? Do you guys know how that will work out? The 3 things I can think of are:
1) it goes smoothly and I get paid into my HL account
2) it goes smoothly and I get paid into my III account
3) it goes horribly wrong and my dividend gets lost somewhere.

Anyone had any experience with such thing?

lpgm

Hello. Does anyone have any up-to-date tales of how long a 100% cash transfer out of HL is taking? Thanks.

masonic

yatinsardana wrote: »

I'm due a dividend pay out at the end of April? Do you guys know how that will work out? The 3 things I can think of are:
1) it goes smoothly and I get paid into my HL account
2) it goes smoothly and I get paid into my III account
3) it goes horribly wrong and my dividend gets lost somewhere.

Anyone had any experience with such thing?

If you haven't yet started your transfer I doubt your holdings will have moved by the end of May, let alone the end of April, so I wouldn't worry about the dividend getting lost. I've been waiting for 2 months now and all of my holdings are still sitting at HL.

yatinsardana

masonic wrote: »

If you haven't yet started your transfer I doubt your holdings will have moved by the end of May, let alone the end of April, so I wouldn't worry about the dividend getting lost. I've been waiting for 2 months now and all of my holdings are still sitting at HL.

Haha, 2 months! That's such a long time for just a transfer.
They said HL is usually very good with transfers and it usually happens within 4 weeks - clearly they have too many transfers to deal with suddenly after upping the prices.
Thanks

darren72

yatinsardana wrote: »

They said HL is usually very good with transfers and it usually happens within 4 weeks - clearly they have too many transfers to deal with suddenly after upping the prices.

A combination of that and not wanting to let go of customers.

hyposmurf

darren72 wrote: »

A combination of that and not wanting to let go of customers.

Problem is if H&L are dragging their heals over the transfers, these customers who are leaving are unlikely to ever want to come back to H&L later, even if they offer better pricing.

liquidityftw

Have had confirmation from HL that - as suspected - if one converts to a fund that is exclusive to HL then there is no mechanism to transfer it in specie to another provide in the future apart from sell - cash transfer - rebuy; and that this would indeed create a potential CGT issue if the holding was in a non tax wrapped account. So beware of accepting such seemingly advantageous trojan horses into your portfolio.