Smithson Investment Trust

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schiff
schiff Posts: 20,099 Forumite
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edited 19 September 2018 at 12:55PM in Savings & investments
I've searched but found nothing, which is a surprise!

The IPO has opened and it lasts till October 12th. I have a S&S ISA that I would like to transfer into the new IT but during the IPO period. It won't work with Co-Funds nor Funds Network, in both of which I have S&S ISAs, I've checked. Apparently Hargreaves and II have the facility (I got this from Smithson) but I've taken it no further.

I'm hoping that the wise heads on here can comment about the way to go, possibly from experience. Somebody surely must be interested in this new trust from the Terry Smith stable!

TIA
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  • cogito
    cogito Posts: 4,898 Forumite
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    Give HL a call as I did recently when I subscribed to an IPO. You needed to have an account with them and sufficient funds to complete the deal. There should be no dealing costs or stamp duty to pay.
  • Linton
    Linton Posts: 17,162 Forumite
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    https://www.hl.co.uk/shares/shares-search-results/s/smithson-investment-trust-ord-gbp0.01
  • TUVOK
    TUVOK Posts: 448 Forumite
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    I've just found out that if you already hold Fundsmith, you can apply to them and invest directly with them for the Smithson IT.
    Would that save costs as compared to investing through HL?
  • schiff
    schiff Posts: 20,099 Forumite
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    I contacted them prior to coming on here and this is what they said:

    "I am afraid we don’t have an ISA wrapper directly for Smithson, but it can be purchased via a platform who will wrap it for you."

    It's the complication of the ISA aspect I think.
  • TUVOK
    TUVOK Posts: 448 Forumite
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    If it's not to be held inside an ISA wrapper, what then? will it be cheaper to purchase directly off Fundsmith rather than purchase via HL and held in a HL Vantage account?
  • schiff
    schiff Posts: 20,099 Forumite
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    TUVOK wrote: »
    If it's not to be held inside an ISA wrapper, what then? will it be cheaper to purchase directly off Fundsmith rather than purchase via HL and held in a HL Vantage account?

    "I have a S&S ISA that I would like to transfer into the new IT but during the IPO period."

    From my original post :)
  • schiff
    schiff Posts: 20,099 Forumite
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    From further reading on MSE I think my best plan is to convert the existing ISA to cash and transfer it to (perhaps) iWeb (hoping they are involved in the Smithson IPO). Apparently cash is much easier to deal with in the receiver's hands, and quicker. My existing ISA is in one single fund and the proceeds are to go entirely into Smithson. I am unlikely to make any changes in the next few years, so costs I hope will be minimal.

    Does that sound like a good idea?

    I will phone iWeb to discuss it tomorrow.
  • Prism
    Prism Posts: 3,803 Forumite
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    TUVOK wrote: »
    If it's not to be held inside an ISA wrapper, what then? will it be cheaper to purchase directly off Fundsmith rather than purchase via HL and held in a HL Vantage account?

    To purchase directly of Fundsmith is free but your dividends and capital gains are not protected by the ISA so will be taxed

    If you buy through an ISA you pay no tax on your gains but would pay a yearly charge. So 0.45% to HL for example, or 0.25% for Youinvest. Both of these are capped at £45 and £30 respectively. You might well get cheaper options elsewhere.

    I just applied for the IPO through my Youinvest ISA
  • busy_dad
    busy_dad Posts: 63 Forumite
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    I would be interested if the IPO is available on IWeb but so far it seems not.

    To the previous post stating it is available direct to existing Fundsmith investors that is correct however it is also open to non fundsmith investors with a 10k investment cap.

    Am I correct that if you invest unwrapped that the two taxes to be aware of are CGT and dividend (the latter tax free llowance is 2k?). Based on that if investing a modest amount (i..e to the limit above) you are not likely to run into any tax any time soon?
  • schiff
    schiff Posts: 20,099 Forumite
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    CGT would apply only if you sold and only if the gain (plus any other gains you make) exceeded the annual tax free limit. I get the impression from the prospectus etc that Smithson would rather not pay dividends but has to to satisfy the IT rules. I think dividends will be very modest.
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