who has the lowest fees for holding shares?

I've been told I need to move my ill gotten gains from my former employer's share purchase/save schemes out of where they are currently held as I'm no longer their employee.  

I could move them to my Barclays Smart Investor ISA account where I would be charged £4 a month.  But wondered if there was somewhere else recommended that would be cheaper.

I would consider a SIPP and think I could most easily set up another account with Barclays but would need to check on if that's possible and if so, how much it would cost me.  I only mention this as I'm currently looking to move 2 DC pensions somewhere, possibly into an annuity but haven't made any firm decisions yet and am not in a rush.

Any ideas?  
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  • eskbanker
    eskbanker Posts: 29,817
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    IWeb is usually cited as a good choice for holding investments, with no ongoing charges involved, but there's a summary of the marketplace at https://monevator.com/compare-uk-cheapest-online-brokers/
  • sevenhills
    sevenhills Posts: 5,792
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    With a SIPP, you would get 20% pension tax relief, which should make the charges irrelevant.
  • eskbanker
    eskbanker Posts: 29,817
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    With a SIPP, you would get 20% pension tax relief, which should make the charges irrelevant.
    ....but would usually pay tax on (75% of) withdrawals, largely negating that effect.
  • sevenhills
    sevenhills Posts: 5,792
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    eskbanker said:
    With a SIPP, you would get 20% pension tax relief, which should make the charges irrelevant.
    ....but would usually pay tax on (75% of) withdrawals, largely negating that effect.
    But the investment plus 20% would be growing. 
  • ColdIron
    ColdIron Posts: 8,653
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    edited 2 December 2023 at 11:19AM
    IWeb is cheap for an ISA and GIA but less so for a SIPP. £180 pa if > £50,000 or £360 if in drawdown, It's provided by A J Bell
  • TBC15
    TBC15 Posts: 1,442
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    Have a look at Fidelity. I’ve got y SIPP in drawdown with them. Used to cost shirt buttons £63ish, hiked recently might be about £105 but still very cheap.


  • masonic
    masonic Posts: 22,835
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    edited 2 December 2023 at 7:22PM
    eskbanker said:
    With a SIPP, you would get 20% pension tax relief, which should make the charges irrelevant.
    ....but would usually pay tax on (75% of) withdrawals, largely negating that effect.
    But the investment plus 20% would be growing. 
    It makes no difference as multiplication and division are commutative. 
    Suppose there is no PCLS and it is a simple case of 20% relief on the way in and 20% tax on the way out.
    • £8k in investments becomes £10k after tax relief (divide by 0.8)
    • Investment plus relief (£10k) doubles in value over the investment period and becomes £20k (multiply by 2)
    • £20k is then taxed at 20% (multiply by 0.8) and becomes £16k
    £16k just happens to be 2 x £8k: the same result as if it were never in the pension.
    As @eskbanker points out, in reality there is some net tax benefit, but 75% of the sum put in a pension wouldn't get any benefit assuming the pension holder was in the basic rate band. The net effect is therefore equivalent to about 5% tax relief, which could easily be gobbled up over the years in extra charges if using a more expensive provider (I don't know what Barclays charge, but I'm guessing I won't be impressed).
  • GeoffTF
    GeoffTF Posts: 1,331
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    There is, however, tax relief on the growth of the investment while they are in the fund. If you do not want to take the PCLS as a lump sum, you can still gain a tax advantage with UFPLS. There are also possible advantages with inheritance. Pensions are not considered if you need to claim benefits, and they are less likely to have their tax advantages taken way completely than ISAs, for example. They are also more likely to be recognised for tax relief if you move abroad. Pensions are complicated unfortunately.
  • sevenhills
    sevenhills Posts: 5,792
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    masonic said:
    It makes no difference as multiplication and division are commutative. 
    Suppose there is no PCLS and it is a simple case of 20% relief on the way in and 20% tax on the way out.
    Why are you supposing that there is no PCLS?
  • eskbanker
    eskbanker Posts: 29,817
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    masonic said:
    It makes no difference as multiplication and division are commutative. 
    Suppose there is no PCLS and it is a simple case of 20% relief on the way in and 20% tax on the way out.
    Why are you supposing that there is no PCLS?
    That's explained in the rest of that post, and also mine, but the point is that nobody is asserting that ISA is a better option than a pension, just that the differential between the two options (in mathematical terms) is typically about 5% not 20%, when allowing for the usual tax-free component of pension withdrawals, however that's phased.
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