Holding Income AND Accumulation units of the same Fund?

[Deleted User]

Thanks folks,
I confirm AJ Bell do charge the £30 "telephone" charge and sell some of your funds to pay their charges if you just don't pay their fees.
Whereas Cavendish automatically sell units of the largest fund, fee free, if there's no cash in the account to pay their fees.

But AJ Bell has ETFs I like that Cavendish doesn't. Nothing is ever straight forward.

Wassa123

A related question:

I know it's better to pay the ISA fees from a normal account instead of the ISA, to maximise the amount of money in the ISA (assuming you're maxxing it out each year).

But is it better to pay broker fees from a SIPP or normal account? If you pay them from the SIPP are you effectively getting a discount as you reclaim 25% tax back on what you put in?

[Deleted User]

That's the way I look at it too Wassa. As soon as you put money into the SIPP, the govenments adds 20%/25% I think, depending on allowances etc.
Whereas if you just paid from your normal account, there would be no government top up. I'm not an expert though.

londoninvestor

Wassa123 wrote: »

But is it better to pay broker fees from a SIPP or normal account? If you pay them from the SIPP are you effectively getting a discount as you reclaim 25% tax back on what you put in?

In general it's better to pay from the SIPP, for just that reason.

Albermarle

But AJ Bell has ETFs I like that Cavendish doesn't. Nothing is ever straight forward.

HL and Fidelity offer ETF's with capped fees and neither has a specific charge for selling investments to pay for platform fees.

ffacoffipawb

Albermarle wrote: »

HL and Fidelity offer ETF's with capped fees and neither has a specific charge for selling investments to pay for platform fees.

HL charges £1.50 if it needs to sell anything

https://www.hl.co.uk/help#charges-and-fees/collecting-charges/collecting-charges/how-will-the-charge-be-collected

If you don't have any cash on your account, and you have fully subscribed to an ISA or SIPP or otherwise can't top up, you could consider adding money to an HL Fund & Share Account.

If there is insufficient cash on the account where the fees were charged and also in the Fund & Share Account, we will sell sufficient holdings to cover the amount owed and restore the Suggested Minimum Cash Balance.

The standard fee collection method is:

Loyalty bonus account (if available)

Cash in the account in which the fees were generated. If no cash on the account then

Cash in your Fund & Share Account. If no cash in your Fund & Share Account then

Sell holdings to cover fees from the account in which the fees were generated. There will be a small charge of £1.50 per deal if an automatic sale is required.

Radiantsoul

Can't seem a problem. Would probably just pick on fund to switch to an income version and leave the rest accumulating.

badger09

ffacoffipawb wrote: »

HL charges £1.50 if it needs to sell anything

https://www.hl.co.uk/help#charges-and-fees/collecting-charges/collecting-charges/how-will-the-charge-be-collected

If you don't have any cash on your account, and you have fully subscribed to an ISA or SIPP or otherwise can't top up, you could consider adding money to an HL Fund & Share Account.

If there is insufficient cash on the account where the fees were charged and also in the Fund & Share Account, we will sell sufficient holdings to cover the amount owed and restore the Suggested Minimum Cash Balance.

The standard fee collection method is:

Loyalty bonus account (if available)

Cash in the account in which the fees were generated. If no cash on the account then

Cash in your Fund & Share Account. If no cash in your Fund & Share Account then

Sell holdings to cover fees from the account in which the fees were generated. There will be a small charge of £1.50 per deal if an automatic sale is required.

I was briefly in the position of having insufficient cash in my (small) SIPP with HL earlier this year, due to a miscalculation on my part. I owed more than 1 month's management fees but no action was taken.

Another poster said HL would contact me and I could pay by debit card. This didn't happen, nor did HL sell any of my investments.

From this, I assume they operate a de minimis limit:)