Anyone in drawdown with interactive investor, how does it work?

ArcticGiraffe

This has been a very informative read - thanks!

Does anyone know if I took the 25% tax free chunk in one shot (to re-invest in my II shares ISA) and leave the rest of the SIPP invested and uncrystalised, would Interactive Investor then trigger the extra SIPP drawdown fees on me at that point?

coyrls

If you take the 25% PCLS, you, by definition, have crystalised your SIPP and would therefore pay the additional fee.

Joey_Soap

coyrls said:

If you take the 25% PCLS, you, by definition, have crystalised your SIPP and would therefore pay the additional fee.

Indeed you do. I transferred a pot to II that was already in drawdown, not even a taxable 1p has been taken from it. But it triggered the extra £10 a month drawdown fee. Presently I pay three chunks of £10 each month - ISA fee, SIPP fee and the drawdown fee. £30 total. That last fee's a bit naughty, I think when you take no SIPP income. But overall, my annual payment to II is about 0.1% of my total II pot. That effectively reduces when I use my monthly trading allowances.

JS