Pension switching incentives

Notepad_Phil

Pat38493 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.

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?

Totally agree (though I've seen some other posters disagree in the past) - but yes, ii don't even give the option, as per their help page:

How are SIPP charges paid?

We collect your monthly subscription via Direct Debit. If you have a stand alone SIPP and have no Direct Debit set up, we will try to collect fees from the cash you hold in your SIPP.

If you have a Trading Account alongside your SIPP, we will try to collect fees from cash you hold in your Trading Account. If there is no cash in your Trading Account, and you also have an ISA account, we will attempt to collect fees from your ISA. We may regularly sweep across your accounts, if cash becomes available to settle part or all of a fee debt. 

If these methods aren't successful and we have your Debit Card details, we will attempt to charge that card the outstanding amount.  If there is no other means of payment, we reserve the right to sell your holdings to cover any outstanding fees. 

MallyGirl

Pat38493 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.

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?

In another thread someone mooted that it might be because of the generous tax treatment of pensions and that you couldn't benefit from paying fees for non pension products (as part of a single fee for the platform) from pension money