Vanguard Account Fees Cap - Where paid from - ISA/Pension?

jimjames

My pension has just been transferred to my Vanguard SIPP and due to the total account value now I will benefit from the £375 pa cap on 0.15% account fees. As per the title does anyone know how this is calculated and where the fee is taken from if you have multiple accounts with them? If the SIPP is above the cap amount on its own, does that mean that the fee can come from there and no fees from the ISA? The Vanguard documentation isn't clear, just that the fee covers all accounts with them so if anyone has personal experience that would be helpful otherwise I'll have to contact them to clarify.

DoublePolaroid

I can’t answer the specifics. However I pay my fees by DD from my bank account, to avoid having to cash out investments.

jimjames

DoublePolaroid said:

I can’t answer the specifics. However I pay my fees by DD from my bank account, to avoid having to cash out investments.

Thanks. My aim is to pay from the SIPP. There seems little point paying from post tax income when I can pay the same money into the SIPP and get tax relief to reduce the amount I need to pay. I keep an amount of cash in there so that I don't need to sell investments to pay the fees.

DavidT67

jimjames said:

DoublePolaroid said:

I can’t answer the specifics. However I pay my fees by DD from my bank account, to avoid having to cash out investments.

Thanks. My aim is to pay from the SIPP. There seems little point paying from post tax income when I can pay the same money into the SIPP and get tax relief to reduce the amount I need to pay. I keep an amount of cash in there so that I don't need to sell investments to pay the fees.

Doubt you could legitimately use the SIPP to pay fees for other products.  So best to have fees paid by either direct debit or cash in general investment account, rather than from ISA.

Yes, due to their aggregate fee, Vanguard Investor UK platform lacks the flexibility offered by other platforms which charge a per account fee with full flexibility on whether it's collected from inside or outside each account.

jimjames

DavidT67 said:

jimjames said:

DoublePolaroid said:

I can’t answer the specifics. However I pay my fees by DD from my bank account, to avoid having to cash out investments.

Thanks. My aim is to pay from the SIPP. There seems little point paying from post tax income when I can pay the same money into the SIPP and get tax relief to reduce the amount I need to pay. I keep an amount of cash in there so that I don't need to sell investments to pay the fees.

Doubt you could legitimately use the SIPP to pay fees for other products. 

Except the sipp won't be paying fees for other products. The sipp alone qualifies for the fee cap so if above post is correct then I might as well close the ISA and just have the sipp with vanguard which would mean the fees can be paid from inside it.

DavidT67

Or option 2, move to another platform with lower fee caps and a current transfer cashback offer...

jimjames

Just to update this. Despite Vanguard previously saying that fees would come from the SIPP if it qualifies for the price cap that didn't happen and they have no stated that fees are taken proportionally across all products. So the only way to get all fees taken from the SIPP is to not have any other products with them.

(BTW I am also looking at the transfer option mentioned above so thanks for the suggestion)

[Deleted User] said:

  So the headline £375 max is really £469 to £682 depending on your tax rate.

That's my issue, with the ISA in place this is correct as paid from post tax income, with just the SIPP the headline £375 is actually only £225 with tax relief.