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  • planteria
    planteria Posts: 5,321 Forumite
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    no prob. is it a good idea though, to have the charges taken from outside of both wrappers? as it stands i have some shares and cash transferring into my F&S account...but going forwards i expect to have all of my investments in my SIPP and ISA...and potentially just a bit of cash in F&S to cover the charges so that wrappers are charge free.
  • grey_gym_sock
    grey_gym_sock Posts: 4,508 Forumite
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    it's more tax-efficient to pay charges from inside the SIPP.
  • planteria
    planteria Posts: 5,321 Forumite
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    grey_gym_sock wrote: »
    it's more tax-efficient to pay charges from inside the SIPP.

    would you mind explaining why that is, please, ggs?
  • grey_gym_sock
    grey_gym_sock Posts: 4,508 Forumite
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    suppose you have £100 to pay in charges.

    you could just pay £100, from outside the SIPP.

    or you could increase your SIPP contributions by £80, which when the tax relief has been added, would give you £100 inside the SIPP to pay the charges. so the cost to you is £80 (or less if higher rate relief is available).
  • grey_gym_sock
    grey_gym_sock Posts: 4,508 Forumite
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    Linton wrote: »
    mm not sure I am convinced. Having transferred £80 from your wallet to your SIPP to pay the charges you then have to replenish your wallet by earning £100.

    yes, but if you'd paid the charges from after-tax income, you'd have to earn £125 to replenish your wallet.
  • Linton
    Linton Posts: 17,216 Forumite
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    grey_gym_sock wrote: »
    yes, but if you'd paid the charges from after-tax income, you'd have to earn £125 to replenish your wallet.

    Yes I deleted my message having had the same thoughts.
  • planteria
    planteria Posts: 5,321 Forumite
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    i see....i was wondering how he'd quoted you when you hadn't said anything :D
  • planteria
    planteria Posts: 5,321 Forumite
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    so, on reflection....i am happy to clear out my F&S account when appropriate, and leave it empty. and then have some cash in my SIPP which can pay for the fees for itself, and wipe out the ISA fees.

    is that what others are doing?
  • planteria
    planteria Posts: 5,321 Forumite
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    i am waiting eagerly for my holdings to appear on iii.co.uk:)

    has anyone any experience of Bed & ISA with iii?
  • ss53
    ss53 Posts: 90 Forumite
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    grey_gym_sock wrote: »
    it's more tax-efficient to pay charges from inside the SIPP.


    You may not have the option. I just deposited cash into my ii SIPP and the charges (120+VAT) were taken out before the net amount was credited to my account.

    That wasn't what I was expecting.
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