Lloyds Group Share ISA

banburybull

Has anyone else been advised by Lloyds that they will no longer administer their own share ISA? I have a letter from them saying that it will be outsourced to EFSL from 31st October the cost of which will be 'subsidised by them for 2 years'. Read the enclosed price list and from the end of this period the cost is then £12 per quarter.

I hold around 750 shares worth around £400 and although they are paying dividends again its surely not worth keeping these once these costs kick in. Am I missing something here? Surely this will work against their desire to sell the remaining government owned shares?
Barry

bigadaj

I'd sell if I were you, though you could transfer as there are cheaper platforms out there is you have other investments.

It's a bit of an irrelevance in terms of the sale of the government shares, they've run them down to a fairly small percentage, they could be off loaded in the near future but presumed they're waiting for a rally so they aren't under water when sold.

markwilkinson

I would keep if I were you but transfer platform to a cheaper one.

Like bigadaj says, irrelevant to the Govt sell off. That will only happen with a significant increase in the share price.

Vortigern

banburybull wrote: »

I hold around 750 shares worth around £400 and although they are paying dividends again its surely not worth keeping these once these costs kick in.

It's not worth keeping the ISA but you might want to keep the shares.

The ISA is a tax shelter but you also have an allowance of £5000 annually before dividends are taxed. Will you earn £5000pa in dividends on £400 worth of Lloyds shares?

You also have an allowance for capital gains - but you will not breach that allowance by selling £400 worth of shares.

You don't need a Stocks & Shares ISA unless you have other investments to shelter from tax.

foxy13

Talk about adding insult to injury. For many years I have
held a Lloyds banking group share ISA (used to be a Halifax PEP) It paid well
then crashed along with the rest of the market. I stuck with it waiting for the
day, ha. Now their value and interest yield is so low they have been off loaded
to a new manager, Equiniti (EFSL) who very kindly will not charge me for the
first year and only £12.50 for the 2nd. The third year will bring a fee of £12.00 a
quarter. This will far out strip any interest with which I purchase new shares.
(Current interim dividend is 0.85P). This news arrived along with the half year
group update bragging a £2.5 bn statutory profit before tax. Ironically the updates
header claims ‘supporting our customers’. I’m not wingin about low yields, its
being dumped by the bank I’ve stuck with.

The other options are transfer to another Isa manager, move
it to Lloyds nominee account or close it. I feel a bit let down by Halifax so I’m
thinking of changing banks ASAP thanks Vortigern

Reckless_Saving

Foxy13, you'll be better of selling up, sounds like being an investor in high risk shares aren't right for you.