Advice for changing a new sipp and Isa platform

Yanling

Thank you very much in advance!

1. I have invested a sipp with one platform valued about 200000 pounds, but I would like to stop it as its charges or fees, and invest a new sipp with another platform such as trading 212, investengine, IG, can I just stop investing with the present platform before April, directly apply and invest into a new sipp platform from April without legal issues?
2. when i withdraw my pentions form these two platform, i do not want annunity, can I just sell my investment funds from both platforms whenever I want, do I need to notify any goverment pension department?
3. Or should I transfer or sell the first platform funds and reinvest it to the second platform? I may lose a lot of money in the transfer ot selling?
4. I have similar situation with my ISA investment, can I do the same as my sipp?

MallyGirl

They all charge some form of fees - you might find one that charges less for your chosen investments, or maybe a fixed fee provider might be cheaper.

Personal pensions are completely separate from the state pension. You will get a tax code allocated once you start withdrawing. Are you still working and contributing to a pension?

You should not sell and reinvest - only a transfer makes sense. Selling it all and withdrawing it would lead to a massive tax bill.

You can transfer from one ISA provider to another- assuming that it is a S&S ISA at both ends. Again you should not withdraw all of it as you can only put £20k into an ISA each tax year.

squirrelpie

1. Exactly what you can do will depend on which SIPP provider you are with and exactly what their rules are. In general, you can just stop contibuting to one SIPP and open another and start contributing to that, but as MallyGirl says most people would instead transfer the existing SIPP to the new provider.

2. Your SIPP provider will get a tax code from HMRC when you start to withdraw from their SIPP. You don't need to do anything yourself.

3. You can transfer from one SIPP provider to another, and you can do that by selling to cash and instructing the new provider to transfer the cash. Or you can transfer the pension 'in specie' which means whilst it is still invested. In both cases you contact the new provider and ask them to do the transfer. Do NOT withdraw any money! You will lose in various ways if you do.

4. Yes an ISA behaves very much like a SIPP in this respect. Again, do a transfer by asking the new provider. Do not make a withdrawal!

Yanling

Hi advisers, thank you so much!

1, yes, i am still working and contributing to sipp and isa for about 5 yrs.

2, the isa provider is Vangaurd, sipp is HL, i am thinking of trading 212 and IG as new providers, are they worth of changing?

3, ISA: is it good idea if I just stop investing with Vanguard, and start a new Isa provider, and keep the money in V as it is? as selling funds to cash will be charged, then after transferring the cash to a new provider to buy funds will be charged again. Or transfer to the new provider?

4, Sipp: HL soon are going to charge for selling funds. is it good idea if i just stop investing with HL, and start a new sipp with a new provider. 3 when retired, can i ask HL to get me a text code, and after withdraw all the money in HL then ask the new provider to get me another text code? Or transfer to the new provider?

DRS1

What is a text code? Do you mean Tax Code? You get a Tax Code for each different pension that you draw. If you draw from two pensions in one tax year you will have two tax codes. If you draw only from one in one year then you will have one tax code for that pension for that year. If you draw exclusively from HL and then in a tax year when you drew from HL you switch to drawing from the new provider you will find the new provider will get a tax code which probably says BR or D0 because it is the second source of income. You may be able to speak to HMRC and get that adjusted so that not all your personal allowance is used up by the HL pension but that will depend on the figures. And for all I know you may have another PAYE source of income in those years which complicates matters further.

If any of these providers charge platform fees (HL for example) then those fees will still apply if you leave the ISA or SIPP with them. Bear that in mind when deciding whether to leave the old rump of SIPP (or ISA) where it is. You seem more focussed on dealing fees but the platform fees can eat away at your pot even more.

MallyGirl

https://forums.moneysavingexpert.com/discussion/comment/81898232#Comment_81898232

point 1 means that you don't want to trigger the MPAA so it is vital that any move of pension money from one provider to another is by transfer, not any form of withdrawal and pay in

Point 2 - depends on your reasons for looking to switch. Make sure you are considering all fees.

Point 3 - there will be a fee to sell and probably another to buy at the other end, if you transfer, but these are one off fairly small costs. As a percentage of your holdings is this really enough to base decisions on?

Point 4 - do you buy and sell often? Some providers offer fee free regular investing. You can start a new one but then you have to manage 2 - keeping both up to date with address changes etc.

Once you start withdrawing then each provider will use a default tax code for the first payment and then be automatically issued a tax code by HMRC. You don't need to tell them to do this as it is automatic

You seem to be focusing on small fees but without knowing an approximate value of your holdings we don't know if the fees are significant

Yanling

Thank You All !

1, I would like to change new prividers for sipp and isa because HL, Vanguard seem to charge more than trading212 and IG, i would like to reduce risks and invest in different providers, dont add all the eggs in one buscket, have more wide and different investment fields.

2 if i have two providers for sipp, when i start withdraw, i will withdraw one provider first untill all the money has withdrawed, is that easier to deal with tax code? i will try to withdraw money less the tax allowence. are there potencial issues happening in the future if i have two providers? however, right now i am not sure if i will have two providers or just one, and i would like to use my sapare time to know more information about new providers as april is coming soon.

3, isa seems easier as it does not need a tax code

So, for the reasons and questions above, should I change to new prividers?

DRS1

You have a SIPP with HL. HL has recently emailed everyone saying they are changing their charges. Some are going to be paying more and so they are moving their investments away from HL. But are you going to be paying more? Or are you one of those paying less?

When deciding whether to just open a new SIPP somewhere else or to move the HL SIPP elsewhere you need to consider the charges. There are often caps on charges and you should look at them (as well as the percentage charges) to see where you are best holding the SIPP (and the ISA). If you are going to be paying £150 pa with a £200k SIPP at HL you may only pay the same amount with a £2mill SIPP with HL because of the cap. But if you put the other £1.8mill somewhere else they will charge you whatever they charge you for a £1.8 mill SIPP. You'd be paying twice.

It may well be that you would be better off holding your SIPP and your ISA in the same place. Some places have separate charges for each account and others don't. Look at that as well.

You seem to want diversification. That is good. But it doesn't come with different platforms. It comes with different investments. The platform is largely irrelevant - though in some cases (Vanguard?) the platform can limit you to certain investments so you don't get the variety you would have at eg HL. But then if you invest in a global tracker or a multi asset fund you have to wonder how much more diversity you really need.

I really wouldn't worry about tax codes if I were you.

Yanling

Hi I called HL and was told i am paying £700 a year platform fees based on my sipp holding is 200k now. i have all in tracker funds.

it seems IG and other new providers offer no fees for their platforms. I am working about 7 years to retire, what are the benefits and drawbacks for changing to a new provider such as IG? please give me opinions and thank you all !

incus432

Many platiorms cap their fees if you hold ETFs/ITs/shares rather than funds. Trackers are avaialble in both funds and ETFs.. HL also do this I believe - they cap SIPP fee at 200 pa for the SIPP and 45 for ISA (please check). if your holdings are in ETFs. If you are paying 700 for the SIPP you must be holding funds, so switching to the equivalent ETF might immediately save you £500 pa.