Iii

masonic

Surreyboy wrote: »

I think in my case that, if I had both my SIPP and ISA with III, there would maybe not be such a great saving as for some other people.

<snip>

I just wanted to check that I have not missed anything?

Have you overlooked the fact that if you hold both an ISA and a SIPP at III, you'll only need to pay the fee for the SIPP?

planteria

i think you have, SurreyBoy?

so, are some of you guys putting some cash into your SIPPs and asking III to take the fees from there?

Surreyboy

Once you take into account the rebate for the £54 for regular investments and at least a couple of trades per annum, the £80 ISA fee will effectively be reduced to about zero anyway.
I only have about £20,000 in the SIPP. The Bestinvest fee is 0.3% and 0.3% of £20,000 is £60; any fund trades are free. This compares with II, where the fee is £144 (incl VAT), plus £10 per trade.
Let me know if I've got that wrong (entirely possible!)

amandajc

Surreyboy wrote: »

Hi
I think in my case that, if I had both my SIPP and ISA with III, there would maybe not be such a great saving as for some other people.

It's possibly the case that this is true despite the fact that the ISA comes free with the SIPP. I have just set up a SIPP with Fidelity who charge 0.35% although my ISA is held with iii (and eventually my husbands ISA will be too when we get round to filling in the transfer form).

The reason I decided to split them rather than have both with iii is that I don't expect to have very much in the SIPP at all (probably no more than £15,000) so the 0.35% shouldn't never amount to much . I am just using the pension as a way of (hopefully) helping to fund early retirement for a few years before my DB pension kicks in at 66 (now possible following the budget changes:))

Also I couldn't see that I would be able to manage dealing charges on 2 linked ISAs and a SIPP in the one account on iii without it costing me more than the standard £20 per quarter which the fees cover. It is free to switch funds on Fidelity (or so the documentation reads to me) so there is more flexibility from that point of view.

But the fact that the ISA is free when you set up a SIPP with iii should definitely be factored in.

(Sorry Surreyboy I posted before reading your response - I think you've got it right, and if you haven't neither have I :-))

masonic

Surreyboy wrote: »

Once you take into account the rebate for the £54 for regular investments and at least a couple of trades per annum, the £80 ISA fee will effectively be reduced to about zero anyway.
I only have about £20,000 in the SIPP. The Bestinvest fee is 0.3% and 0.3% of £20,000 is £60; any fund trades are free. This compares with II, where the fee is £144 (incl VAT), plus £10 per trade.
Let me know if I've got that wrong (entirely possible!)

You will pay £80 at II for the ISA, or a total of £144 for ISA + SIPP. I believe you get the £80 trading credit in either case, so unless you pay less than £64 elsewhere for the SIPP you are better off having them both at II. So, as your SIPP grows, it may work out cheaper at II depending on how often you trade.

Surreyboy

I agree with your point masonic, although I guess the figure is £64, rather than £40 ? (As it's £120 plus VAT).
Thanks for clarifying the point about trading credit. I didn't realise that.

masonic

Surreyboy wrote: »

I agree with your point masonic, although I guess the figure is £64, rather than £40 ? (As it's £120 plus VAT).
Thanks for clarifying the point about trading credit. I didn't realise that.

Actually, I'm wrong about the trading credit - on checking, SIPP customers are exempt.

http://www.iii.co.uk/isas/charges

masonic

The difference in VAT treatment is intriguing isn't it...

Anyone know why the SIPP fee attracts VAT, but the fee for the Share & Fund account / ISA does not?

Surreyboy

As regards the ISA, I'm pretty sure that II would be the cheapest option for me. However, I typed my details into Comparefundplatforms.co.uk and it recommended Alliance Trust Savings (with no reference to II). The fees seem higher at Alliance Trust - the only thing I can think off is that Alliance Trust might have negotiated with fund managers lower fees on certain funds than II?
But that seems unlikely - apart from HL negotiating lower fees for their 150+ , I would have thought the underlying fund ongoing charges at most platforms would be the same?
I don't know if any one has any views on this?
Cheers

Surreyboy

As regards the VAT on the SIPP, it appears that fees for ISAs are just generally more competitive for ISAs than SIPPS, so that might the reason? Or am I just being simple?