Tax query on cashing in an investment portfolio

Euro_Skank

Deleted_User said:

valiant24 said:

Euro_Skank said:

Plus, I don't want to hold more than the protected £85K with any one provider. 

I'd like to be corrected if appropriate.

But my understanding is that the £85k protection relates to any cash you have in the wrapper.

Anything invested in gilts, equities, funds or ETFs will be held separate from the platform's funds and will (should?) not be impacted, even if the platform itself goes bust.

Not exactly. Everything on the platform, both investments and cash, should be held separately from the platform's own assets, and therefore should be safe if it goes bust. If the platform failed to keep either investments or cash separate, you would have a claim against the platform for any resultant losses, and if the platform couldn't pay because it had gone bust, the FSCS would cover this up to £85k. Though this is a pretty extreme scenario.

Any cash on a platform will be held (in an account exclusively for the platform customers' cash - see above) with some bank or banks. If those banks go bust, you would have a separate FSCS claim of up to £85k per bank, which I think includes the total cash you might hold with the same bank both via platforms and directly.

Thanks. I think that's correct, so it may be wise to check to see if Halifax SD, Vanguard and HL don’t deposit their customers' cash all with the same bank. 

Maybe I’m being a liitle paranoid about this but I don’t want to put all my eggs in one basket.

Euro_Skank

Deleted_User said:

Euro_Skank said:

Deleted_User said:

valiant24 said:

Euro_Skank said:

Plus, I don't want to hold more than the protected £85K with any one provider. 

I'd like to be corrected if appropriate.

But my understanding is that the £85k protection relates to any cash you have in the wrapper.

Anything invested in gilts, equities, funds or ETFs will be held separate from the platform's funds and will (should?) not be impacted, even if the platform itself goes bust.

Not exactly. Everything on the platform, both investments and cash, should be held separately from the platform's own assets, and therefore should be safe if it goes bust. If the platform failed to keep either investments or cash separate, you would have a claim against the platform for any resultant losses, and if the platform couldn't pay because it had gone bust, the FSCS would cover this up to £85k. Though this is a pretty extreme scenario.

Any cash on a platform will be held (in an account exclusively for the platform customers' cash - see above) with some bank or banks. If those banks go bust, you would have a separate FSCS claim of up to £85k per bank, which I think includes the total cash you might hold with the same bank both via platforms and directly.

Thanks. I think that's correct, so it may be wise to check to see if Halifax SD, Vanguard and HL don’t deposit their customers' cash all with the same bank. 

Maybe I’m being a liitle paranoid about this but I don’t want to put all my eggs in one basket.

HL have some info about who they deposit cash with here: https://www.hl.co.uk/about-us/cash ... They split it, putting no more than 35% with any one bank. Though they could change this. And that page doesn't tell you the exact percentage they currently hold with each bank - presumably it varies, anyway.

I haven't seen similar info from other platforms, AFAICR.

Thanks very much, FeralHog. 

Swipe

Why are people holding more than £85K cash in their portfolios?

dunstonh

Swipe said:

Why are people holding more than £85K cash in their portfolios?

If it suits their objectives and investment strategy, why wouldn't they?

Swipe

dunstonh said:

Swipe said:

Why are people holding more than £85K cash in their portfolios?

If it suits their objectives and investment strategy, why wouldn't they?

FSCS worries?

dunstonh

Swipe said:

dunstonh said:

Swipe said:

Why are people holding more than £85K cash in their portfolios?

If it suits their objectives and investment strategy, why wouldn't they?

FSCS worries?

If they are worried about that then spread it around. If they are not then no problem.