Most cost effective platform for holding a Sipp?

mears1

Inspired by the helpful posts on this website, has lead me to research  Sipp platforms. But the fees do seem so much higher than for General investment accounts and ISA., especially when draw downing. Although, I would like to hold £50k into a SIpp for IHT purposes. Is there a cost effective platform for this, that you use? 

MX5huggy

Vanguard charge 0.15% so £75 per year on £50k. Drawdown doesn’t change this. It’s the same as their ISA or GA fee. The big downside is of course you only have access to Vanguard funds and ETF’s. 

ex-pat_scot

Fidelity are £45 if you have ETFs

Albermarle

Fidelity charge 0.35% and no extra charges for a SIPP /drawdown . 
So for funds , Fidelity would be more expensive than Vanguard, but you have access to a much wider range of investments .
If your investments are ETF's /IT's or shares then the cost is capped at £45.

sevenhills

MX5huggy said:

Vanguard charge 0.15% so £75 per year on £50k. Drawdown doesn’t change this. It’s the same as their ISA or GA fee. The big downside is of course you only have access to Vanguard funds and ETF’s. 

But up until the age of 75 you can still contribute the minimum amount of £3,600 gross, or £2,880 net, to which the UK government adds £720.

So you would be £645 ahead.

dunstonh

Inspired by the helpful posts on this website, has lead me to research  Sipp platforms. But the fees do seem so much higher than for General investment accounts and ISA.,

Most platforms do not charge different rates for the different tax wrappers.  Although a small number do.

especially when draw downing.

Charging for drawdown is quite unusual nowadays.   Tends to only be on the platforms with a long menu of explicit charging for everything rather than a fixed rate.

 Although, I would like to hold £50k into a SIpp for IHT purposes. Is there a cost effective platform for this, that you use? 

What assets do you intend to hold in the SIPP as that is a key bit of information that can change the answer.

intgomo

Have a look here for a useful comparison of the various providers:

Best trading platforms and stock brokers - Monevator

I use iWeb for my ISA and Interactive Investor for my SIPP, but the latter isn't the cheapest for the amount you're planning to invest. That said, it's worth thinking about how much more you want to put into the SIPP over time (if anything) and also looking at drawdown charges, which in some cases are low or no cost.

mears1

dunstonh said:

Inspired by the helpful posts on this website, has lead me to research  Sipp platforms. But the fees do seem so much higher than for General investment accounts and ISA.,

Most platforms do not charge different rates for the different tax wrappers.  Although a small number do.

especially when draw downing.

Charging for drawdown is quite unusual nowadays.   Tends to only be on the platforms with a long menu of explicit charging for everything rather than a fixed rate.

 Although, I would like to hold £50k into a SIpp for IHT purposes. Is there a cost effective platform for this, that you use? 

What assets do you intend to hold in the SIPP as that is a key bit of information that can change the answer.

Thank you for your reply. The Assets would be Tracker funds or Managed Funds like Fundsmith, or Smithson. They will be a buy and hold and if they could be passed on as in-species to the  beneficiaries. 

Thrugelmir

SIPP accounts require a far higher level of (trained) administration support. Not least to run a payroll system to support drawdown.  

nigelbb

If you just want to launder your money through a SIPP to take advantage of the reduced tax then Hargreaves Lansdowne make no charge if you just hold cash in your SIPP.

Dansmam

I was looking at HL yesterday to see if they have a minimum cash level to maintain the SIPP seem to remember reading on here you had to leave £1k in. Can't see anything. Anyone know?