SIPP charges 2016
Set up and administration
|Setting up your SIPP||No charge|
|Paying a single or regular contribution||No charge|
|Transfer in from another registered pension scheme||No charge|
|Account charge||No charge|
|Shares (including investment trusts, ETFs, gilts and bonds)||0.25% (maximum £25 per quarter)|
|Funds (including unit trusts, OEICs and structured products)||
First £0 - 250,000
Next £250,000 - £1m
Next £1m - £2m
Value over £2m
Buying and selling investments (per deal)
|Funds (including unit trusts and OEICs) online||£1.50|
|Shares (including investment trusts, ETFs, gilts and bonds) online||£9.95|
|Shares, where there were 10 or more shares deals in the previous month||£4.95|
|Regular investments online||£1.50|
|Where we are required to complete a paper application (eg structured products)||£100|
|Foreign exchange charge on international dealing and foreign currency funds||1.00%|
Income drawdown and other pension charges
|Charge (VAT is payable
|One-off payment of a tax free lump sum, income payment, uncrystallised funds pension lump sum or small lump sum||£25|
|Regular income drawdown payments or regular uncrystallised funds pension lump sum payments||£100 pa|
|Crystallised funds where no income is paid||No charge|
|Purchase an annuity||£150|
|Review of capped drawdown (includes triennial/annual reviews and reviews when additional funds are moved into drawdown)||£75|
|Payment of benefits on death or if your pension is to be split/shared as part of a divorce||Time/cost basis. Minimum charge expected to be £250|
|Closure of your SIPP through taking flexi-access drawdown payments or uncrystallised funds pension lump sums within 12 months of opening your SIPP||£295|
Transfer out and other charges
|Charge (VAT is payable except where stated)|
|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|
|Transfer out to an overseas pension scheme (QROPS)||£250|
|Payment by CHAPS||£25|
|Disinvestment, if we need to sell some of your holdings to cover charges||£29.95 per holding (no VAT)|
|Foreign exchange charge payable when we have to convert any dividends or corporate action payments into sterling||0.50% (no VAT)|
Interest rates paid on the cash held in your SIPP account
|Cash balance||Gross interest rate
for this tier only
|Interest rate (AER)
for this tier only
|£50,000 and below||0.00%||0.00%|
All charges will be deducted from your SIPP. These charges and rates are effective from 1 October 2016.
- The funds and shares custody charges will be based on the mid-price value of investments in your account on the last working day of each month in the calendar quarter. This will include investments added to your account, but not yet settled at the month end. The charges will normally be collected within 20 business days of the quarter end.
- For new accounts opened during the month the funds and shares custody charges will be applied on a pro-rata basis from the date of account opening to the end of the month. For accounts closed in a month, the custody charges will be applied on a pro rata basis from the beginning of the month to the date we receive your closing instruction.
Buying and selling investments
- The shares online dealing charge is determined by the number of shares deals you placed in the previous calendar month across the accounts in your individual name (excluding any regular investment deals). For example, the charge you pay in February will depend on the number of deals you made in January. If you make 10 or more online deals a month, then the £4.95 charge will apply the following month.
- The investments that you choose may have their own initial and annual charges, in addition to our dealing and custody charges.
- If you are investing in unit trusts and OEICs, we offer discounts on the initial charge made by the fund managers. Any specially negotiated discounts of initial charges on unit trusts and OEICs are passed to you. See our funds universe for details. Information on the annual charge for the unit trust or OEIC may be obtained from our website, or direct from the fund manager.
- Dealing charges apply separately to purchases and sales. The dealing charge for each transaction will be shown on the contract note.
- Stamp duty of 0.50% applies on all purchases (not sales) of UK quoted shares (1.00% for shares quoted on the Irish Stock Exchange). Stamp duty is payable on certain securities issued by UK incorporated companies where these securities are traded as CREST Depositary Interests. There is no stamp duty on purchases (or sales) of unit trusts, open ended investment companies (OEICs), exchange traded funds (ETFs), warrants and government stock (gilts).
- The PTM (Panel on Takeovers and Mergers) levy of £1.00 is payable on equity trades with a consideration over £10,000 in securities of companies which are incorporated in the UK, Channel Islands or the Isle of Man.
- You will be told in advance if we need to complete a paper application.
- Additional government and local stock exchange charges are payable for certain international markets. These are detailed on the charges and rates page on our website and will be added to your contract note.
- A foreign exchange charge of 1.00% will be included in the rate used to convert the value of your deal to sterling. We may share a proportion of this with our service provider.
Drawdown and other pension charges
- The annual charge will be payable when the SIPP is first put into drawdown if you are to receive a regular income or when the regular income or regular uncrystallised funds pension lump sums are set up, and on each subsequent anniversary.
- The closure charge will apply where you have reduced the value of your SIPP to £1,000 or less through taking flexi-access drawdown or uncrystallised funds pension lump sums within 12 months of opening your SIPP. We will be entitled to close your account and pay the remaining funds to you, after deducting our charges.
- Where we make a one-off payment by CHAPS at your request please note that the CHAPS charge will apply in addition to the one-off payment charge.
Interest rates paid on the cash held in your SIPP cash account
- When comparing charges between different SIPP product providers, you should also compare the interest rates payable on your cash, particularly if you intend to hold significant sums of money in cash. The amount of interest paid will depend on the amount you choose to hold in cash and market interest rates.
- The interest rate for each tier only applies to money held in that tier and not to the account balance as a whole. Total interest paid will be a blended rate depending on the money held in each tier. Therefore the interest rates shown should not be used for comparative purposes with other accounts, unless they operate on a similar basis.
- Interest rates are subject to variation and interest is paid to your account quarterly, in arrears. Interest will not be credited or paid if the amount of such interest, at the end of each quarter, is less than £2.50.
- There are no routine bank transaction charges and interest is paid to your account without any deduction of tax.
- The Annual Equivalent Rate (AER) represents the annual rate effectively received by your account if the interest at gross rate applied during a year remained in the account and itself earned interest.
- AJ Bell receives payments from banks based on the aggregate cash balances held across all accounts. The amount we receive will vary depending on the total cash balances held and market interest rates. Over the foreseeable future, we expect to receive between 0.25% below and 0.6% above the prevailing base rate for cash held within a SIPP, although it may be higher or lower when interest rates are volatile. These payments are used to pay interest at the rates shown on our website, and we retain the amount received above these rates to keep our administration, custody and dealing charges low.
- You must always ensure that there is sufficient cash held to cover our charges and any SIPP benefits, or other payments, when they are due for payment.
- VAT is only applicable where indicated.