A Fidelity improvement?

MDMD

dunroving said:

Would that also apply to SIPP charges? 

Generally unless you are up against a contribution limit it is better to pay fees from cash held within a SIPP as then you get tax relief on the fees. If you pay them outside a SIPP they come out of taxed money.

Alexland

MDMD said:

Generally unless you are up against a contribution limit it is better to pay fees from cash held within a SIPP as then you get tax relief on the fees. If you pay them outside a SIPP they come out of taxed money.

I guess if there was someone with both an ISA and a SIPP with Fidelity then there would be no way to get them to collect the SIPP charges from within the SIPP (for tax efficiency) and the ISA charges from the Cash Management Account (to maximise your ISA valuation)?

It could be useful to have the SIPP charges collected from the CMA if your SIPP is entirely invested in ETF(s) for the £45 cap and it would otherwise cost you £10 trade to sell down holdings to pay the charges. That's why we hold a little bit in a fund (and pay a tiny additional percentage platform fee to hold it) so we have something to sell down to pay the fees. I also find our ETFs produce a small random surplus cash as the £1.50 quaterly dividend reinvestment can only buy into whole ETF units.