Pension - Cash Park

MallyGirl

I think that HL might be one that credits the tax relief straight away rather than waiting for it to arrive. Hopefully someone will come along and agree or correct me on that. I don't use them so couldn't confirm.

FIREDreamer

MallyGirl said:

I think that HL might be one that credits the tax relief straight away rather than waiting for it to arrive. Hopefully someone will come along and agree or correct me on that. I don't use them so couldn't confirm.

No they don’t unfortunately!

dunstonh

Spicy21 said:

Sorry, I have another question. AJBell T&Cs say that it could be 8-12 weeks before they pay the basic rate tax relief into the pension. I’ve always seen this added within a day or two of making a payment (Wealthify and Scottish Widows). Have I just been lucky in the past or does it normally take 8-12 weeks for this to be added to a pension?

Providers that prefund transactions will show it immediately.  Providers that do not pre-fund transactions will show it when they get it.

Prefunding can cost a provider/platform millions of pounds as it uses their money.     Budget platforms or those that cannot afford to put aside that sort of money will not pre-fund.

MallyGirl

FIREDreamer said:

MallyGirl said:

I think that HL might be one that credits the tax relief straight away rather than waiting for it to arrive. Hopefully someone will come along and agree or correct me on that. I don't use them so couldn't confirm.

No they don’t unfortunately!

Thanks for the correction. I am sure someone does but I can't think of a search criteria to find the old thread.

eastcorkram

Fidelity is definitely 8 weeks or more before it's added. 

xylophone

Is the case that you are within a few  months of a year in the  DB scheme?

You seem to be assuming that as soon as you have the money in the personal pension and apply to transfer in to (TPS/LGPS?) it will all take place immediately.

Won't you have to get your quote from the DB scheme. accept it and then proceed?

This  could take some weeks so that the tax relief was in the personal pension before transfer occurred?

FIREDreamer

MallyGirl said:

FIREDreamer said:r

MallyGirl said:

I think that HL might be one that credits the tax relief straight away rather than waiting for it to arrive. Hopefully someone will come along and agree or correct me on that. I don't use them so couldn't confirm.

No they don’t unfortunately!

Thanks for the correction. I am sure someone does but I can't think of a search criteria to find the old thread.

Straight from the horse’s mouth …

Secret2ndAccount

I believe Wealthify is an exception. Most of the well known platforms will allow you to hold cash in your account if you want to. In any case you can invest in a money market fund like CSH2. This is very low risk, and pays, effectively, interest, currently about 5%. Then you sell a few days before your transfer.
Expect to wait several weeks as stated above to get your 25% uplift. To expect your provider to pre-fund that money then transfer it away before they've received it from HMRC is asking a bit much. If you are in a real hurry you could transfer most of your initial deposit out straight away, then make a second transfer after the 25% top-up arrives.

Spicy21

Thanks to everyone for their contribution. I have made the deposit and holding it as cash and based on the information in this chain I anticipate the tax relief to be added around 25th June. 

I do have a while left before the transfer window closes but I would rather have the task off my list. I was not aware of the delay these companies had in receiving the tax relief from HMRC so can see the reasoning behind the timescales.

Albermarle

MallyGirl said:

FIREDreamer said:

MallyGirl said:

I think that HL might be one that credits the tax relief straight away rather than waiting for it to arrive. Hopefully someone will come along and agree or correct me on that. I don't use them so couldn't confirm.

No they don’t unfortunately!

Thanks for the correction. I am sure someone does but I can't think of a search criteria to find the old thread.

Normally it is the traditional insured pension funds that pre fund the tax relief.
Aviva, Standard LIfe, Scottish Widows, Royal London etc