II and Tax relief / refund after SIPP contribution

wel_home

Hi,

I had opened a SIPP account with II and made a payment to my SIPP account in Dec 2014. I have not received any tax relief.

I formally raised a complaint with II. I am enclosing the following response from II.

"Our SIPP provider The Lifetime SIPP company (TLSC) have advised us that the non-payment of tax relief has been caused by the HMRC undertaking a review of II as part of its standard process. When a review takes place, all communications occurs directly between TLSC & HMRC and no payments are made to any members of the SIPP. The length of time for review process is variable, and completely out of our control and we cannot confirm when payments will resume at this time"

Couple of questions:
1) Have other members been affected with this non-payment?
2) How come they still email us, and suggests that the tax would be credited within 6-11 weeks?
3) Does it raises issues re: some problems within the II? ? viability of II

Is it worthwhile chasing the financial ombudsman? I have not received the tax reclaim yet and did some more transfers to SIPP for this tax year (as I was not aware of this investigation)

Thanks
wel_home

wel_home

Hi,

Any thoughts! (Had plenty of views!).

wel_home

Thrugelmir

Was your SIPP invested into Harlequin investments ?

wel_home

Hi Thrugelmir,

Thanks for the reply.

No investment has been made in the Harlequin trust (the SIPP investments were primarily in Vanguard trackers).

Last August, they credited the 20% HMRC tax refund after about 8 weeks. However, after further SIPP contribution , II failed to credit the 20% tax refund from HMRC, even after six months and still outstanding.

Is there a link between the nature of investments made in SIPP vs 20% tax refund made?

I am wondering if other clients having SIPP with II have been similarly affected?

wel_home

JasonPr

I read the following comment by algernond on monevator.com:

Got mail from Interactive Investor a couple of days ago, saying the HMRC had completed it's audit of their SIPP, and that the outstanding tax relief will be paid before the end of May.... Will definitely comment again here if it isn't...

The comment was posted May 17.

wel_home

Thanks JasonPr for providing the update.

It is good that I am not alone in this!

Will provide an update at the end of the month.

wel_home