What are the mechanics of transferring a SIPP?

msallen

Hi all

I'm contemplating transferring my SIPP (in specie) from Cavendish to Charles Stanley Direct but have a couple of queries.

I imagine I'm concerning myself over nothing here, but as the tax relief in Cavendish typically runs 2 or 3 months behind (i.e. at any point in time there are 2 or 3 months worth of tax relief due to be added to the account), does the transfer go ahead with the current holdings from Cavendish, and then the tax relief is forwarded as cash as and when it is available?

Also, if the transfer might potentially take a number of months (as cited on other threads), but I want to keep making contributions, do I keep making these to Cavendish, or if I have to make them to CSD once I have requested the transfer, then do I get stung with excessive charges from CSD due to the value of my holdings being under £30K until the transfer is completed?

Thanks

Deewm76

I was under the impression that sipp providers only accepted transfer ins when advise was given first??? I could be mistaken but i was under the impression that Sipp providers implemented this due to (the fsa impending regulation) regarding (ex only) sipp transfers.

In relation to your question about transfer times/tax relief/continued premiums,Transfered Sipps do genuinely take a few months to complete due to pension regulations. I wouldn’t worry too much about tax relief payments/dividend interest being a few months behind as your provider will apply these monies as and when they receive it in. I personally wouldn’t transfer a pension without speaking to an expert first.

MallyGirl

Advice is required to transfer out of a DB pension if value > £30,000.
Not relevant in this scenario.

msallen

Thanks for taking the time to answer Deewm76 but I think you are talking about the transfer of DB pensions to a SIPP, not SIPP to SIPP.

Linton

msallen wrote: »

Hi all

I'm contemplating transferring my SIPP (in specie) from Cavendish to Charles Stanley Direct but have a couple of queries.

I imagine I'm concerning myself over nothing here, but as the tax relief in Cavendish typically runs 2 or 3 months behind (i.e. at any point in time there are 2 or 3 months worth of tax relief due to be added to the account), does the transfer go ahead with the current holdings from Cavendish, and then the tax relief is forwarded as cash as and when it is available?

That is how is worked when my wife's ISA was transferred from Fidelity which I believe is the same platform.

Also, if the transfer might potentially take a number of months (as cited on other threads), but I want to keep making contributions, do I keep making these to Cavendish, or if I have to make them to CSD once I have requested the transfer, then do I get stung with excessive charges from CSD due to the value of my holdings being under £30K until the transfer is completed?

Thanks

If you open the new SIPP and then ask them to transfer in the old one you should be able to contribute to the new one immediately.

cloud_dog

Linton wrote: »

If you open the new SIPP and then ask them to transfer in the old one you should be able to contribute to the new one immediately.

That is what I have done for the OH for transferring from HL.

Have opened the YouInvest SIPP, made a deposit, cancelled the HL regular investment, and added it to YouInvest. Will deal with the transfer at my leisure (so to speak).

msallen

Thanks Linton / cloud_dog. I was more concerned with whether CSD would charge me the £100 (+VAT) for having under £30K in my SIPP until the transfer completed, but that's a question I can ask them easily enough I suppose.