Donate to Remove ads

Got a credit card? use our Credit Card & Finance Calculators

Thanks to johnstevens77,Bhoddhisatva,scotia,Anonymous,Cornytiv34, for Donating to support the site

Stock and Share SIPP - transfer to newco

AndyPandy
Lemon Slice
Posts: 377
Joined: November 6th, 2016, 11:46 pm
Has thanked: 431 times
Been thanked: 244 times

Stock and Share SIPP - transfer to newco

#129548

Postby AndyPandy » April 2nd, 2018, 5:04 pm

I have a Stock and Share SIPP with Standard Life (Aberdeen). The share transactions and portfolio is held by Stocktrade. It is pretty much fully invested in UK Equities.

Firstly I misunderstood SLA's Price structure (my own fault) but it does mean I'm paying about £700 a year for them to manage it even though I am making the decisions and accepting responsibility. They also charge me £12 to cover the admin of a share purchase or sale (on top of Stocktrade's charges). I try and keep these to a minimum.
I've now received a letter telling me that Stocktrade is going to charge £70 year platform fee. Not much in the grand scheme, but enough to trigger a review on top of the above.

1) If I was to look around for a no-frills S&S SIPP provider to cut down on charges, what would happen to the portfolio? Would I have to sell all the shares, transfer the cash and repurchase or could a new provider take possession of the shares?

2) Bearing in mind that I turn 55 in October, would a better option be to open a new low cost SIPP and start contributing to that whilst drawing down my existing one over a couple of years. It's only just into 6 figures and, being self-employed, have flexibility in balancing income streams during this time to minimise taxation.

Happy to get external advice on how best to draw down the pension most efficiently, just want some guidance from the Sages here as to whether I'm on the right track and whether it is actually worth it. Whatever happens, I'm looking forward to that 25% lump sum this autumn..... :D

digitaria
Lemon Pip
Posts: 88
Joined: November 4th, 2016, 10:36 am
Has thanked: 317 times
Been thanked: 32 times

Re: Stock and Share SIPP - transfer to newco

#129559

Postby digitaria » April 2nd, 2018, 5:40 pm

You should be able to transfer your SIPP to another provider - and those charges would suggest that it would be a good idea.

The target SIPP provider will arrange the transfer for you. I use AJ Bell Youinvest - there are other options. AJ Bell will cover some of your costs if your existing provider charges for transfers. See here. Note that AJ Bell has a custody charge, but I believe it's a more reasonable £25 per quarter.

puffster
2 Lemon pips
Posts: 119
Joined: November 16th, 2016, 9:25 pm
Has thanked: 99 times
Been thanked: 39 times

Re: Stock and Share SIPP - transfer to newco

#129646

Postby puffster » April 3rd, 2018, 10:43 am

digitaria wrote:You should be able to transfer your SIPP to another provider - and those charges would suggest that it would be a good idea.

The target SIPP provider will arrange the transfer for you. I use AJ Bell Youinvest - there are other options. AJ Bell will cover some of your costs if your existing provider charges for transfers. See here. Note that AJ Bell has a custody charge, but I believe it's a more reasonable £25 per quarter.

As you are likely to go into drawdown soon, look at the charges for this. In the case of AJ Bell this is £120 inc VAT per year for regular payments and lump sum payments are £30 inc VAT per shot.

Regards, Puffster

ursaminortaur
Lemon Half
Posts: 6944
Joined: November 4th, 2016, 3:26 pm
Has thanked: 447 times
Been thanked: 1718 times

Re: Stock and Share SIPP - transfer to newco

#129662

Postby ursaminortaur » April 3rd, 2018, 11:49 am

AndyPandy wrote:1) If I was to look around for a no-frills S&S SIPP provider to cut down on charges, what would happen to the portfolio? Would I have to sell all the shares, transfer the cash and repurchase or could a new provider take possession of the shares?


You may be able to transfer the shares directly - what is known as an in-specie transfer - rather than having to sell the shares and transfer the cash. However you would need to speak to both your current and new provider to confirm this - also such in-specie transfers are often fairly expensive. Although as mentioned by others some providers might cover some of these costs for those transferring to them.

For instance if you were transferring out of A J Bell's YouInvest SIPP instead of potentially transferring in then the charges would be

https://www.youinvest.co.uk/sipp/charges-and-rates

Transfer out to another UK registered pension scheme in cash £75
Transfer out to another UK registered pension scheme in specie £25 per holding (no VAT) plus £75

(+ VAT except where stated)



(If you decided to transfer into A J Bell's YouInvest SIPP there will be no charge from A J Bell but your current provider may well have similar charges for transferring out.
You say your holdings are UK equities which should, assuming in-specie transfers are allowed by both parties, make things easier since both parties should be able to deal with them whereas that isn't always true for some funds.)


Return to “Pensions - Practical Problems”

Who is online

Users browsing this forum: No registered users and 7 guests