Changes to Fidelity fees Jan/Feb 2023

Albermarle

granta said:

masonic said:

granta said:
I have VHVG as an accumulating ETF for new investments but my existing HMWO and VEVE, I'm reluctant to convert these as will probably lose more on market movements.

It's handy to retain something dividend paying as a means of replenishing cash balance for fees. More tax efficient to pay fees out out of the SIPP where the money has benefited from tax relief on the way in.

Last time I looked at VHVG it was still quite small and less liquid than VEVE, but it does look a lot more viable now.

Yes I had heard of people here paying fees from within the SIPP. I had assumed that it was better to pay from outside the SIPP so that I could maximise by contributions. Am a basic rate tax payer and was hoping to put in the maximum for this tax year so if I don't reinvest the dividend and use it for fees, is that not worse?

The point is that normally any withdrawals from a SIPP are potentially taxable. By paying the fees from the SIPP you get a small extra withdrawal that is tax free, without affecting your 25% tax free cash later.
On the other hand you have slightly less invested so you may lose out on a bit of growth.
Either way it is not going to make a significant difference to the end result as the amounts are involved are small.
If you have a 'traditional' pension with a company like Standard Life, Scottish Widows etc , the charges always come out of the pension AFAIA

Albermarle

granta said:

Alistair31 said:

I wonder how long before HL ups their £45 cap.

Isn’t their cap £200?

£200 for SIPP and £45 for ISA. Which makes the Fidelity option much more competitive (for now)

I think also with HL, the limits are separate, whereas with Fidelity the (now) £90 is for everything (of this type of investment) you hold on the platform.

granta

Albermarle said:

granta said:

Alistair31 said:

I wonder how long before HL ups their £45 cap.

Isn’t their cap £200?

£200 for SIPP and £45 for ISA. Which makes the Fidelity option much more competitive (for now)

I think also with HL, the limits are separate, whereas with Fidelity the (now) £90 is for everything (of this type of investment) you hold on the platform.

yes the limits are separate so £245 vs £90 still makes Fidelity the better deal