Can I use existing holdings to contribute to the Vantage SIPP?
- Yes you can via a process known as Bed & SIPP.
- A Bed & SIPP involves us selling the investment and repurchasing it straightaway within the Vantage SIPP.
- We aim to keep the bid/offer spread, dealing costs and amount of time you are out of the market to a minimum. However, for managed funds held in the Hargreaves Lansdown Vantage service, you will be out of the market for 24 hours. If the managed funds are held as certificates, you will be out of the market for 5 working days.
- A Bed & SIPP is classified as a pension contribution so should be eligible for tax relief. How much depends on your circumstances. As the Vantage SIPP is a pension, you are usually unable to access the money until at least age 55.
- The term Bed & SIPP derives from the tax planning ruse; bed and breakfast, which Gordon Brown ended in 1998, that allowed you to use your CGT allowance on an annual basis by selling a share one day and buying it back the next. However since the investment is bought back in the name of your pension and not your own name it is still allowed under current rules.
- Please see the Bed & SIPP section for more information.
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Before applying, please understand the risks and features of the Vantage SIPP.