Pension switching incentives

NoMore

LHW99 said:

Notepad_Phil said:

Albermarle said:

artyboy said:

ewaste said:

I gather with Freetrade that the annual Plus Membership fee can't be taken from the SIPP itself?

I'm considering moving a SIPP and ISA across to Freetrade to make best use of the incentives on offer. 

No, it comes out of my bank account (well, at least I've not yet found a way to pay it out of the SIPP...). Mind you, as I'll be getting £2500 in cashback, it's something I can live with!

In theory the providers can not just take money from a SIPP to pay fees, due to the tax treatment of pension withdrawals.
I tried once to move money from a SIPP to the cash management account with Fidelity and it would not let me.
However if the cash management account is empty, they will take cash themselves from the SIPP to pay fees. 
Do not quite follow the logic of that, but that is how it works.

I'm with ii and they are quite happy for the monthly fees and trading fees to come from within the sipp itself, same with a small HL sipp I once had. Mrs Notepad once had a Fidelity SIPP and IIRC you had to go through quite a long process to withdraw cash, so am not surprised that it stopped you from just transferring SIPP cash to the cash management account - and what would it transfer if you asked for £100 to go across, would that be after or before tax? I can see complaints happening no matter which way they operated.

I am with II, with a SIPP and ISA. I have asked a couple of times about taking fees from the accounts, and have been told no.

Is this something new, now Aberdeen have them?

If you only have a sipp then ii will take them from the sipp directly. As soon as you have another account, isa or gia, they pull from that instead. 

michaels

My SIPP transfer has been in Charles Stanley for a week now - great except it is also still in II....and they are both blaming the other.  Would be great if I get double bubble growth for the period

However II say no withdrawals until the transfer is finalised which is now getting anxiously close to budget day.

At least with Charles Stanley I should be getting double bubble as my DW referred me.

artyboy

Has anyone got an IG SIPP right now? I'm thinking of transferring £100k in for the 1% cashback, just curious as to how smoothly it was set up. 

Especially concerned about this one as there is a very tight deadline of 31 Jan 2026 for SIPP transfers in to complete in order to qualify - with the Christmas break, that could really be pushing it unless they are on the ball...

Alexland

Albermarle said:

Although as I understand how Fidelity work is that they take the monthly fees from the cash management account.
So if it is empty they transfer money from the SIPP, even if they will not let me do it .

Yes I have never funded my CMA (or SIPP which is the result of historic transfers) and only hold exchange traded assets so each month Fidelity just move the capped £7.50 from my SIPP cash balance into the CMA and then deduct the fee from the CMA.

I understand if I also had an ISA and/or GIA they would just move a proportion of the £7.50 from each account to the CMA.

NormalNorman

Notepad_Phil said:

Albermarle said:

artyboy said:

ewaste said:

I gather with Freetrade that the annual Plus Membership fee can't be taken from the SIPP itself?

I'm considering moving a SIPP and ISA across to Freetrade to make best use of the incentives on offer. 

No, it comes out of my bank account (well, at least I've not yet found a way to pay it out of the SIPP...). Mind you, as I'll be getting £2500 in cashback, it's something I can live with!

In theory the providers can not just take money from a SIPP to pay fees, due to the tax treatment of pension withdrawals.
I tried once to move money from a SIPP to the cash management account with Fidelity and it would not let me.
However if the cash management account is empty, they will take cash themselves from the SIPP to pay fees. 
Do not quite follow the logic of that, but that is how it works.

I'm with ii and they are quite happy for the monthly fees and trading fees to come from within the sipp itself, same with a small HL sipp I once had. Mrs Notepad once had a Fidelity SIPP and IIRC you had to go through quite a long process to withdraw cash, so am not surprised that it stopped you from just transferring SIPP cash to the cash management account - and what would it transfer if you asked for £100 to go across, would that be after or before tax? I can see complaints happening no matter which way they operated.

Messaged ii a few days ago to switch to fees being deducted from the cash balance otherwise it all seems a bit messy if you have regular contributions etc. No reply yet but hopefully soon. Cheers

Notepad_Phil

NormalNorman said:

Notepad_Phil said:

Albermarle said:

artyboy said:

ewaste said:

I gather with Freetrade that the annual Plus Membership fee can't be taken from the SIPP itself?

I'm considering moving a SIPP and ISA across to Freetrade to make best use of the incentives on offer. 

No, it comes out of my bank account (well, at least I've not yet found a way to pay it out of the SIPP...). Mind you, as I'll be getting £2500 in cashback, it's something I can live with!

In theory the providers can not just take money from a SIPP to pay fees, due to the tax treatment of pension withdrawals.
I tried once to move money from a SIPP to the cash management account with Fidelity and it would not let me.
However if the cash management account is empty, they will take cash themselves from the SIPP to pay fees. 
Do not quite follow the logic of that, but that is how it works.

I'm with ii and they are quite happy for the monthly fees and trading fees to come from within the sipp itself, same with a small HL sipp I once had. Mrs Notepad once had a Fidelity SIPP and IIRC you had to go through quite a long process to withdraw cash, so am not surprised that it stopped you from just transferring SIPP cash to the cash management account - and what would it transfer if you asked for £100 to go across, would that be after or before tax? I can see complaints happening no matter which way they operated.

Messaged ii a few days ago to switch to fees being deducted from the cash balance otherwise it all seems a bit messy if you have regular contributions etc. No reply yet but hopefully soon. Cheers

From memory ii will only allow SIPP fees to be collected from the SIPP cash account when that is the only account you have with them. so if you also have an ISA or Trading Account with them then that might stop it being an option for you.

NormalNorman

Notepad_Phil said:

NormalNorman said:

Notepad_Phil said:

Albermarle said:

artyboy said:

ewaste said:

I gather with Freetrade that the annual Plus Membership fee can't be taken from the SIPP itself?

I'm considering moving a SIPP and ISA across to Freetrade to make best use of the incentives on offer. 

No, it comes out of my bank account (well, at least I've not yet found a way to pay it out of the SIPP...). Mind you, as I'll be getting £2500 in cashback, it's something I can live with!

In theory the providers can not just take money from a SIPP to pay fees, due to the tax treatment of pension withdrawals.
I tried once to move money from a SIPP to the cash management account with Fidelity and it would not let me.
However if the cash management account is empty, they will take cash themselves from the SIPP to pay fees. 
Do not quite follow the logic of that, but that is how it works.

I'm with ii and they are quite happy for the monthly fees and trading fees to come from within the sipp itself, same with a small HL sipp I once had. Mrs Notepad once had a Fidelity SIPP and IIRC you had to go through quite a long process to withdraw cash, so am not surprised that it stopped you from just transferring SIPP cash to the cash management account - and what would it transfer if you asked for £100 to go across, would that be after or before tax? I can see complaints happening no matter which way they operated.

Messaged ii a few days ago to switch to fees being deducted from the cash balance otherwise it all seems a bit messy if you have regular contributions etc. No reply yet but hopefully soon. Cheers

From memory ii will only allow SIPP fees to be collected from the SIPP cash account when that is the only account you have with them. so if you also have an ISA or Trading Account with them then that might stop it being an option for you.

Thanks for the info. Yes SIPP only. Cheers

artyboy

artyboy said:

Has anyone got an IG SIPP right now? I'm thinking of transferring £100k in for the 1% cashback, just curious as to how smoothly it was set up. 

Especially concerned about this one as there is a very tight deadline of 31 Jan 2026 for SIPP transfers in to complete in order to qualify - with the Christmas break, that could really be pushing it unless they are on the ball...

To answer my own question, this one looks like more trouble than it's worth. IG appears to be using another company, Options Pensions, to administer its SIPP, and there is a whole separate application process to be completed here.

Their "user friendly online SIPP application" (verbatim from the email I was sent) is anything but. It's long winded, manual, buggy, and doesn't appear to allow partial transfer requests. Not that I've got far enough along because it keeps giving me errors.

Might have a go on a desktop tomorrow, but whilst this outfit does appear to be regulated, I'm not sure they are competent, certainly not enough to get a transfer done before the end of Jan... they don't even use Origo from what I can see.

i might wait to see if there are better offers in the new year. Getting flashbacks of the bad old days when my pensions were administered by WTW 

Pat38493

Notepad_Phil said:

NormalNorman said:

Notepad_Phil said:

Albermarle said:

artyboy said:

ewaste said:

I gather with Freetrade that the annual Plus Membership fee can't be taken from the SIPP itself?

I'm considering moving a SIPP and ISA across to Freetrade to make best use of the incentives on offer. 

No, it comes out of my bank account (well, at least I've not yet found a way to pay it out of the SIPP...). Mind you, as I'll be getting £2500 in cashback, it's something I can live with!

In theory the providers can not just take money from a SIPP to pay fees, due to the tax treatment of pension withdrawals.
I tried once to move money from a SIPP to the cash management account with Fidelity and it would not let me.
However if the cash management account is empty, they will take cash themselves from the SIPP to pay fees. 
Do not quite follow the logic of that, but that is how it works.

I'm with ii and they are quite happy for the monthly fees and trading fees to come from within the sipp itself, same with a small HL sipp I once had. Mrs Notepad once had a Fidelity SIPP and IIRC you had to go through quite a long process to withdraw cash, so am not surprised that it stopped you from just transferring SIPP cash to the cash management account - and what would it transfer if you asked for £100 to go across, would that be after or before tax? I can see complaints happening no matter which way they operated.

Messaged ii a few days ago to switch to fees being deducted from the cash balance otherwise it all seems a bit messy if you have regular contributions etc. No reply yet but hopefully soon. Cheers

From memory ii will only allow SIPP fees to be collected from the SIPP cash account when that is the only account you have with them. so if you also have an ISA or Trading Account with them then that might stop it being an option for you.

Why?  Surely any rational person would want the fees collected from their SIPP as priority, and I don't see what difference it makes to II?

NormalNorman

NormalNorman said:

Notepad_Phil said:

NormalNorman said:

Notepad_Phil said:

Albermarle said:

artyboy said:

ewaste said:

I gather with Freetrade that the annual Plus Membership fee can't be taken from the SIPP itself?

I'm considering moving a SIPP and ISA across to Freetrade to make best use of the incentives on offer. 

No, it comes out of my bank account (well, at least I've not yet found a way to pay it out of the SIPP...). Mind you, as I'll be getting £2500 in cashback, it's something I can live with!

In theory the providers can not just take money from a SIPP to pay fees, due to the tax treatment of pension withdrawals.
I tried once to move money from a SIPP to the cash management account with Fidelity and it would not let me.
However if the cash management account is empty, they will take cash themselves from the SIPP to pay fees. 
Do not quite follow the logic of that, but that is how it works.

I'm with ii and they are quite happy for the monthly fees and trading fees to come from within the sipp itself, same with a small HL sipp I once had. Mrs Notepad once had a Fidelity SIPP and IIRC you had to go through quite a long process to withdraw cash, so am not surprised that it stopped you from just transferring SIPP cash to the cash management account - and what would it transfer if you asked for £100 to go across, would that be after or before tax? I can see complaints happening no matter which way they operated.

Messaged ii a few days ago to switch to fees being deducted from the cash balance otherwise it all seems a bit messy if you have regular contributions etc. No reply yet but hopefully soon. Cheers

From memory ii will only allow SIPP fees to be collected from the SIPP cash account when that is the only account you have with them. so if you also have an ISA or Trading Account with them then that might stop it being an option for you.

Thanks for the info. Yes SIPP only. Cheers

As I don’t have an ISA with ii they said to cancel the DD to have fees deducted from the SIPP cash balance. The DD was initially setup to allow payment of the switching incentive.