Taking HL draw down

ColdIron

SouthCoastBoy said:

Albermarle said:

jaybeetoo said:

The drawdown account is not just marketing.  They are two separate accounts.  If you have investments in a HL SIPP and a HL drawdown SIPP, they charge you two lots of fees!  I moved all my investments from the SIPP to the drawdown SIPP.

. In legal/tax terms, you either have an uncrystallised pot ( where no tax free cash has been taken) or a crystallised pot where the tax free cash has been taken, and any more withdrawals are potentially taxable. 

Some providers like to call the latter a drawdown account. It probably rolls off the tongue a bit better.

You will be charged two lots of fees, but the total fees will be the same as before. eg

£100K uncrystallised pot at 0.45 % = £450 pa

Take £10K tax free cash and you are left with ;

£60K uncrystallised at 0.45% = £270
£30K crystallised at 0.45% = £135 

When I crystallised some of my Fidelity pension pot ( very similar provider to HL) they asked if I wanted to keep the same investments in the crystallised part as the original uncrystallised, or change them. 

so now have 100k @ .45% from drawdown SIPP account
250k @.45% from SIPP account 250k @ .25%, so you are now paying .45% on 350k rather than 250k. Is my reasoning correct or have I misunderstood?

Yes that's how it works. The thresholds are applied per account and not across accounts. It's the same with the £200 cap

Albermarle

ColdIron said:

SouthCoastBoy said:

Albermarle said:

jaybeetoo said:

The drawdown account is not just marketing.  They are two separate accounts.  If you have investments in a HL SIPP and a HL drawdown SIPP, they charge you two lots of fees!  I moved all my investments from the SIPP to the drawdown SIPP.

. In legal/tax terms, you either have an uncrystallised pot ( where no tax free cash has been taken) or a crystallised pot where the tax free cash has been taken, and any more withdrawals are potentially taxable. 

Some providers like to call the latter a drawdown account. It probably rolls off the tongue a bit better.

You will be charged two lots of fees, but the total fees will be the same as before. eg

£100K uncrystallised pot at 0.45 % = £450 pa

Take £10K tax free cash and you are left with ;

£60K uncrystallised at 0.45% = £270
£30K crystallised at 0.45% = £135 

When I crystallised some of my Fidelity pension pot ( very similar provider to HL) they asked if I wanted to keep the same investments in the crystallised part as the original uncrystallised, or change them. 

so now have 100k @ .45% from drawdown SIPP account
250k @.45% from SIPP account 250k @ .25%, so you are now paying .45% on 350k rather than 250k. Is my reasoning correct or have I misunderstood?

Yes that's how it works. The thresholds are applied per account and not across accounts. It's the same with the £200 cap

Thanks for the clarification.
I am mainly with Fidelity and their £90 cap applies across the platform, and their platform fee reduction at £250K also applies across the platform and on the first £250K as well.
I forgot that HL rules, although they look similar, are less attractive.

SouthCoastBoy

Albermarle said:

I am mainly with Fidelity and their £90 cap applies across the platform, and their platform fee reduction at £250K also applies across the platform and on the first £250K as well.

I forgot that HL rules, although they look similar, are less attractive.

Yes, I have been an H&L customer for 20+ years, but considering transferring to a cheaper alternative, AJ Bell is most probably my preference, fees on face value appear to be a lot less, 0% on 500k+