SIPP Transfer - Tax Relief

Grogged

Hello,
I'm at the point where it makes sense to transfer from Vanguard to II to benefit from their fixed fee.
As I contribute to my SIPP monthly, will VG transfer the tax relief when it comes in or will I need to do a mini transfer in a couple of months when the last government payment arrives?
Thanks,
G.

NottinghamKnight

It's likely that the tax relief will come later so yes, you'll probably have to wait and transfer the balance, might be worth asking VG though.

Grogged

Thanks NK, I've opened a ticket with them.

Albermarle

Alternatively you could open up the II SIPP . Switch the regular investments to that . Once final tax relief arrives in Vanguard , then transfer . 

Grogged

Just to update, investment transferred.
Will now need to wait for the tax relief to be paid over the next 3 months.
So probably late January.

norsefox

Grogged said:

Just to update, investment transferred.
Will now need to wait for the tax relief to be paid over the next 3 months.
So probably late January.

For what it’s worth, Vanguard use the 6th of the Month as their closing date for that period’s pension contributions.  Tax relief is then paid on the 20th of the following month (+/- depending on working days).

For regular payments, make sure they go in before the 6th, otherwise you add an unnecessary one month wait on receiving tax relief.

Grogged

Interestingly my SIPP has gone through as cash but the ISA as in-specie.
Nothing on the transfer forms about that...

dunstonh

DId you request a cash transfer or in-specie transfer on the pension?   Maybe they couldn't do in-specie on the pension (its more common on ISAs than it is on pensions and if the pension doesn't support it, they wont offer it as an option)

Albermarle

I transferred a pension to Fidelity and was given the option of cash or in specie . In fact in specie was not possible ( old with profits fund ) and so chose cash .
Then I transferred an ISA as well ( pension  & ISA transfer together reached the £500 cash back target ) but was given no option to transfer in cash . So half of the funds came in specie and half had to go to cash anyway as those funds not available on Fidelity . 
With the SIPP the cash just arrived - simple.
With the ISA it arrived in dribs and drabs and seemed to need a lot of different internal transactions .
It all worked out OK and quite quickly but why the SIPP and the ISA transfer were handled differently I have no idea. 

Grogged

Thanks both,
The transfer forms simply asked if I was transferring all or some of the investment value and the value of the account.
Not an issue, just a suprise.
I'm moving to save fees, so would have repurchased as I'm happy with my strategy.

Grogged

The plot thickens...
I now have all the shares back with VG, who are busily selling them for a cash transfer...
I'm trying to find out what happened, as I'll be transferring less than I would have been 10 days ago.
I've rechecked the transfer forms and it was definitely a cash transfer.