SIPP providers accepting single company shares

german_expat

Is anybody aware of a SIPP provider who will accept the transfer of single company shares into their scheme please?

dunstonh

All SIPPs should be able to handle that as the ability to purchase direct assets is typical SIPP functionality.       ALthough when I refer to SIPPs I mean real ones and not those which are not SIPPs but try to make out they are.

german_expat

Thanks @dunstonh I tried Vanguard and AJ Bell this morning as well as my former company scheme provider, Aviva and none of them will do so. The shares originated from a SIP and I need to try and act within 90 days of them being transferred out of that scheme from when I left the company.

dunstonh

I tried Vanguard and AJ Bell this morning as well as my former company scheme provider, Aviva and none of them will do so. 

Vanguard isn't a SIPP.  
Aviva do it on their SIPP but not their direct to consumer pensions
AJ Bell should do it on their SIPP but not their basic pension option.

Is it perhaps terminology here?     You wouldn't transfer unwrapped assets to a SIPP.  You would sell the unwrapped assets and then pay the cash into the SIPP and then buy the shares back again.  If you have asked them if you can transfer shares into the SIPP, they may be taking it too literally. 

jimjames

dunstonh said:

All SIPPs should be able to handle that as the ability to purchase direct assets is typical SIPP functionality.       ALthough when I refer to SIPPs I mean real ones and not those which are not SIPPs but try to make out they are.

Can you actually transfer shares into a SIPP? I thought you could only pay cash into them? The OP specifically says they want to transfer shares into it

german_expat

I was using a HMRC page for information relating to this. Essentially, I am trying to manage CGT liability.

This states: 

You might have to pay Capital Gains Tax if you sell the shares.

You’ll not pay Capital Gains Tax on shares:

• sold, if they were kept in the plan until the point of sale
• transferred to an Individual Savings Account (ISA) within 90 days of taking them out of the plan
• transferred to a pension, directly from the scheme when it ends

If you do not transfer your shares to a pension immediately when the scheme ends, you can still transfer them up to 90 days later. You may have to pay Capital Gains Tax if they go up in value between when you buy them and when you transfer them.

The third bullet point above is why I asked the question on the forum.

However, the HMRC Capital Gains Manual states:

There is no liability to Capital Gains Tax if the employee retains shares within the plan until he asks the trustees to dispose of them for him. And, if he keeps the shares after they cease to be subject to the plan and disposes of them later, his acquisition cost is deemed to be the market value of the shares at the time they ceased to be subject to the plan.

As my shares have transferred from the SIP maybe the best option is to transfer £20k worth to a stocks and shares ISA and the remainder to a "dealing account", as AJ Bell for example refer to it, until the next financial year when I transfer them to into the ISA.

As I understand it from HMRC advice, I would only pay GCT on the profit made on the shares above £20k in value between the date they transferred out of the SIP and the date the start of the new tax year when they go into the Stocks and Shares ISA.

I have requested a ‘Letter of Appropriation’ from Equiniti who managed the SIP to facilitate this.

cloud_dog

Are the shares listed on the appropriate exchanges and are allowed in the SIPP?

Perhaps name the company, if they are a well know one.

eskbanker

german_expat said:

As my shares have transferred from the SIP...

How long ago were they moved out of the plan, and to where?

german_expat

BAE Systems. 5th Nov 2024. Moved to Equiniti Shareview.