Vanguard Sipp

trickydicky14

Vanguard SIPP

Bit of a novice question, I have just paid £2880 into my Vanguard Sipp as I’m retired.

I know that the tax relief will be added at a later date.

My question is, can I invest the cash I have paid in now and then wait for the tax relief and then invest that when it arrives.

Any reasons why I should wait?

Thanks for any advice.

ian16527

Yes, yes and no

george_jetson

I have just opened a Vanguard SIPP - and got this information from them - if you invest the cash now Vanguard will put the tax relief in the same fund when it arrives…

Vanguard will automatically claim basic rate tax relief on your behalf for up to 20% of the gross value of your pension contributions. Tax relief will be applied to your Personal Pension 6 to 11 weeks after the event. If you make a contribution and leave the amount in cash, the tax relief will also be left as cash. But if you set an investment instruction at the same time as making that contribution, your tax relief will be automatically invested once received

[Deleted User]

george_jetson said:

I have just opened a Vanguard SIPP - and got this information from them - if you invest the cash now Vanguard will put the tax relief in the same fund when it arrives…

Vanguard will automatically claim basic rate tax relief on your behalf for up to 20% of the gross value of your pension contributions. Tax relief will be applied to your Personal Pension 6 to 11 weeks after the event. If you make a contribution and leave the amount in cash, the tax relief will also be left as cash. But if you set an investment instruction at the same time as making that contribution, your tax relief will be automatically invested once received

Hello, the key words are "at the same time".  Different outcome depending on when exactly cash is deposited in relation to investment decisions. Regards

george_jetson

thetimewill said:

george_jetson said:

I have just opened a Vanguard SIPP - and got this information from them - if you invest the cash now Vanguard will put the tax relief in the same fund when it arrives…

Vanguard will automatically claim basic rate tax relief on your behalf for up to 20% of the gross value of your pension contributions. Tax relief will be applied to your Personal Pension 6 to 11 weeks after the event. If you make a contribution and leave the amount in cash, the tax relief will also be left as cash. But if you set an investment instruction at the same time as making that contribution, your tax relief will be automatically invested once received

Hello, the key words are "at the same time".  Different outcome depending on when exactly cash is deposited in relation to investment decisions. Regards

Yep missed that. Mine went straight into a fund which is different to OP’s situation…

trickydicky14

Second question, I paid in my £2880 by debit card and it appears it takes 24 hours to clear before I can invest it.
That is odd, when I pay cash into my S&S ISA with HL via a debit card I can use it instantly.
Why would this be?

dunstonh

trickydicky14 said:

Second question, I paid in my £2880 by debit card and it appears it takes 24 hours to clear before I can invest it.
That is odd, when I pay cash into my S&S ISA with HL via a debit card I can use it instantly.
Why would this be?

I'm guessing here but knowing how other FNZ based platforms work, they match the bank statement to the expectation on the system. Usually by checking the bank statement multiple times a day.    So, once it appears on the statement and is matched in the next checking point, that is when they release it as available.

Thrugelmir

dunstonh said:

trickydicky14 said:

Second question, I paid in my £2880 by debit card and it appears it takes 24 hours to clear before I can invest it.
That is odd, when I pay cash into my S&S ISA with HL via a debit card I can use it instantly.
Why would this be?

I'm guessing here but knowing how other FNZ based platforms work, they match the bank statement to the expectation on the system. Usually by checking the bank statement multiple times a day.    So, once it appears on the statement and is matched in the next checking point, that is when they release it as available.

Most likely once a day in the morning. Reconciling all the previous days activity in one process. 

ian16527

trickydicky14 said:

Second question, I paid in my £2880 by debit card and it appears it takes 24 hours to clear before I can invest it.
That is odd, when I pay cash into my S&S ISA with HL via a debit card I can use it instantly.
Why would this be?

This is the same for the Vanguard S&S ISA. Must be the way they work.
Fidelity is the same as HL so you can invest straight away

dunstonh

Thrugelmir said:

dunstonh said:

trickydicky14 said:

Second question, I paid in my £2880 by debit card and it appears it takes 24 hours to clear before I can invest it.
That is odd, when I pay cash into my S&S ISA with HL via a debit card I can use it instantly.
Why would this be?

I'm guessing here but knowing how other FNZ based platforms work, they match the bank statement to the expectation on the system. Usually by checking the bank statement multiple times a day.    So, once it appears on the statement and is matched in the next checking point, that is when they release it as available.

Most likely once a day in the morning. Reconciling all the previous days activity in one process. 

That is possible.   One platform I know checks hourly.  Another every 3 hours.  So, the frequency of checking will vary with the service standard.