Interactive Investor tax relief dates

MK62

Hi all....does anyone know the date in the month when tax relief can be expected to land in an Interactive Investor SIPP?

My OH opened a SIPP in early Feb with them, and was expecting the tax relief on her first contribution around now.....but nothing yet.

With HL it always landed in her SIPP on the first working day after the 20th of each month........so no panic yet, but just wondering when to expect it. I can find nothing on their website  about this.......which tbh, so far, doesn't seem to be all that impressive really (parts of it don't seem to work, and info like this is missing.....maybe a case of just getting  what you pay for though I suppose)

Marcon

MK62 said:

Hi all....does anyone know the date in the month when tax relief can be expected to land in an Interactive Investor SIPP?

My OH opened a SIPP in early Feb with them, and was expecting the tax relief on her first contribution around now.....but nothing yet.

With HL it always landed in her SIPP on the first working day after the 20th of each month........so no panic yet, but just wondering when to expect it. I can find nothing on their website  about this.......which tbh, so far, doesn't seem to be all that impressive really (parts of it don't seem to work, and info like this is missing.....maybe a case of just getting  what you pay for though I suppose)

Why not ask II direct, making your query quite specific to your wife's account?

Mutton_Geoff

From II help pages "For 'net' contributions we will claim back basic rate tax relief on your behalf. This usually takes 6 -11 weeks to receive the tax reclaim from the HMRC"

They seem to be slow compared to AJ Bell.

Albermarle

For comparison, Fidelity say this,

The tax relief will be added to your account as cash within 6 to 8 weeks from the end of the month you're investing.

MK62

Thanks for the replies...it landed today.......so a few days slower than HL, but that's not really much of an issue for us tbh.

Freecall

I always make my contribution to II at the end of April and get the tax added on the 21st or 22nd June.

I believe that the cut-off date to meet this date is actually 5th May but I usually do it a few days early to make sure it all goes through.

In fact I am pretty sure that this is a generic monthly pattern so :

- Contribute by 5th of month,

- Get tax added 21st of following month

Some platforms used to pre-fund but I'm not sure which ones still do.

Albermarle

Some platforms used to pre-fund but I'm not sure which ones still do.

AFAIK normally only the traditional insurers pre fund. eg Aviva, Standard Life, Scottish Widows etc 

dunstonh

Some platforms used to pre-fund but I'm not sure which ones still do.

You generally find that most DIY platforms do not prefund but most intermediary platforms do.    Prefunding does lead to better outcomes (its about 0.1% improvement) but it costs providers more to implement as they are using their own money to fund the gap.     Most DIY platforms are very small companies and don't have the money to do that.  There is an argument that the cost of prefunding is high and it allows platforms to charge less if they don't prefund.  However, some of the most expensive platforms on the DIY side don't prefund and some of the cheapest on the intermediary side do prefund.   So, I personally put it down to the capital resources of the platform in question and when they started operating as well as the market they operate in.

prefunding can also apply to purchases and fund switches with some platforms.

Freecall

dunstonh said:

Some platforms used to pre-fund but I'm not sure which ones still do.

You generally find that most DIY platforms do not prefund but most intermediary platforms do.    Prefunding does lead to better outcomes (its about 0.1% improvement) but it costs providers more to implement as they are using their own money to fund the gap.     Most DIY platforms are very small companies and don't have the money to do that.  There is an argument that the cost of prefunding is high and it allows platforms to charge less if they don't prefund.  However, some of the most expensive platforms on the DIY side don't prefund and some of the cheapest on the intermediary side do prefund.   So, I personally put it down to the capital resources of the platform in question and when they started operating as well as the market they operate in.

prefunding can also apply to purchases and fund switches with some platforms.

 

I'm sure you are correct.

Not really an issue for others like me though, years into draw-down so it's only the £720 for a few weeks each year.  Probably stays in cash anyway.

I can certainly live with that.

I do recall pre-funding years ago though when the web-based platforms were starting up.