Investment Report FAQs
- I have closed my account so why have I received an investment report?
If there have been any transactions in your account within the last 6 months we are obliged to send you an investment report. As long as no further transactions are made after this period you will not receive any further investment reports from Hargreaves Lansdown.
- Why have you not commented on one of my funds/shares?
We offer comments on over 400 of the most popular shares and funds; unfortunately we are not able to provide comments on all investments. Please note these comments do not represent personal advice; they are our opinion on the investment itself and take no account of your other holdings.
- Where is my consolidated tax certificate/statement of contributions?
If you receive any taxable dividends or interest in the tax year you will find a consolidated tax certificate at the end of your Spring investment report. If applicable a statement of contributions to your Vantage SIPP will also be included.
- Why haven't I got a tax certificate with my investment report?
If you don't have any taxable income from your Hargreaves Lansdown investments for the 2013/2014 tax year, which ran from 6 April 2013 to 5 April 2014, then you won't have a consolidated tax certificate with your report. Income or capital gains made on investments held within a SIPP, ISA, or Junior ISA are not subject to taxation and do not need to be declared to HMRC. However, if you are in any doubt about your personal tax position you should contact a tax professional for further assistance.
- Why can I see details of income received on my consolidated tax certificate but not on my transaction history?
If you invest in accumulation units you will not receive the income as a cash payment. Instead, income generated is retained within the fund and is reflected in the price of your units. The consolidated tax certificate shows you the monetary amount of this income but as this income was retained within the fund, you will not see this amount showing as a receipt on your income account.
- Why have I not received a statement of interest credited on my cash balance within my account?
As we currently only pay interest on cash balances of £1,000 or more, if your capital account cash balance, per account, has not exceeded this amount you will not have received any interest payments.
- Why do the dividends from my VCT holdings not appear on the tax certificate?
VCT dividends are not liable for tax, therefore they will not appear on the tax certificate.
- What is the discount tax and what does it mean for me?
HRMC believes that from April 2013 rebates of annual charges (such as loyalty bonuses) paid on funds held outside ISAs or SIPPs should be paid net of basic rate tax. We believe this is incorrect and are challenging HMRC's interpretation. However, in line with best client accounting practice and to save clients facing an unexpected bill in the future, we are currently paying loyalty bonuses within the Vantage Fund & Share Account net of an amount equivalent to the basic rate tax. If we are successful in our challenge we will return this money to clients. If we are unsuccessful we will use the money to pay over any amounts due to HMRC. Loyalty Bonuses in the Vantage Fund & Share Accounts held by overseas investors, companies and charities will be paid without any deductions, as will Loyalty Bonuses in the Vantage ISA and Vantage SIPP which are exempt from tax.
- Do I need to declare my loyalty bonus on my tax return?
From 6 April 2013 (2013/2014 tax year) HMRC believes that rebates of annual charges (such as loyalty bonuses) paid on funds held outside ISAs or SIPPs should be paid net of basic rate tax. We believe this is incorrect and are challenging HMRC's interpretation but in line with best client accounting practice and to save clients facing an unexpected bill in the future, we are currently paying loyalty bonuses within the Vantage Fund & Share Account net of an amount equivalent to the basic rate tax.
However, our legal counsel has advised that investors should disclose the full amount of the loyalty bonus received each tax year. This can be done by utilising the 'white space' for any other information on the tax return itself, or by including details in a covering letter with their tax return.
Investors should also state that they have been advised, notwithstanding the differing view taken by HMRC, that the loyalty bonus they have received is not taxable.
For more information please download this note about loyalty bonuses received on funds held in our Fund & Share Account.
Loyalty bonuses received into an ISA or a SIPP are not subject to tax and do not need including on your tax return. The same is the case for loyalty bonuses received by overseas investors, companies or charities.
- What can I do with the loyalty bonus?
All loyalty bonuses are now paid directly into the account where the units are held.
New rules introduced by the FCA, our regulator, mean loyalty bonuses paid on units bought on or after 1 April 2014 are treated differently to loyalty bonuses paid on units bought before this date.
Units bought on or after 1 April 2014
Loyalty bonuses received on units bought on or after 1 April 2014 must be reinvested back into funds. We cannot pay this money out to you and it cannot be used to cover fees.
You have three options for loyalty bonuses paid on fund units bought after 1 April 2014:
- Automatically reinvest into your largest holding, subject to a minimum investment of £50.
- Automatically reinvest into one of your existing fund holdings, subject to a minimum investment of £50.
- Hold the loyalty bonus on your account and reinvest into a fund of your choice, subject to a minimum investment of £50.
Once loyalty bonuses paid on units bought after 1 April have been reinvested, if you wish to then sell those units to raise some cash you can do so at any time with no dealing charges.
You can amend your instruction for how loyalty bonuses are treated by going to the 'Cash' tab of the account where the units are held, and then the 'Income and loyalty bonus' section. Next, click 'More detail, options and how to deal' in the 'Loyalty bonus, balance and settings' box. Then click 'Options' and follow the onscreen instructions.
Units bought before 1 April 2014
Loyalty bonuses received on units bought before 1 April 2014 can still be paid as cash. You can hold these loyalty bonuses as cash to meet future fees or transfer them to the capital account where you can reinvest or, in the ISA and Fund & Share Account, withdraw them if you wish.
To find out more please go to the income account where the units are held and select 'More options, details and how to deal' within the Loyalty bonus balance and settings section.
Historically, depending on the account you held and when you held it, your loyalty bonuses may have been paid to a separate loyalty bonus account. Any cash held in the loyalty bonus account can be transferred into another account e.g. Stocks & Shares ISA and invested, withdrawn (from the ISA and Fund & Share Account), or used to pay fees.
To transfer your loyalty bonus to another Vantage account simply go to your loyalty bonus summary, click on the button labelled 'Transfer now' and select which product you wish to transfer your loyalty bonus into.
If you choose to add this money to an ISA or SIPP it will count as a subscription for that tax year. Please note that if you choose to add this money to a SIPP it will no longer be accessible until the minimum retirement age, currently 55.
Alternatively, money in the loyalty bonus account can be withdrawn to your nominated bank account. This can again be done within the loyalty bonus account.
- Why hasn't my income been reinvested?
Income will be reinvested when it reaches a minimum of £10 per holding. Reinvestments take place between the 11th and 21st of the month and are charged at 1%, minimum £1, maximum £10.
You can also choose your own reinvestment level by going to the 'Income and loyalty bonus' tab within the 'Cash' tab of the account, and then clicking on the link for 'Amend your income instruction'.
- I have a cash balance on my income account which I would like to move to my capital account, how can I do this?
You can move the cash from your income account to your capital account online. Simply log in to your account and choose the account where the income is being held (e.g. the Vantage Fund & Share Account). Go to the 'Cash' tab and select 'income account' and follow the link to 'transfer your income balance to your capital account now', found on the right hand side of the page.
- What does UTI/UTG/UT mean when shown next to my dividends in the income account?
When you see UTG next to an interest payment from an OEIC/unit trust this will mean that you have received a gross income payment from a fund in your account. UTI means that there has been a net interest payment.
Where you simply see the letters UT this will refer to a net dividend payment from an OEIC/unit trust.
- What are the fees for holding my investments in Vantage?
There is a tiered charge per account for holding funds in Vantage:
- 0.45% per annum on the first £250,000 of funds
- 0.25% on the value of funds between £250,000 and £1m
- 0.1% on the value of funds between £1m and £2m
- No charge on the value of funds over £2m
Shares, investment trusts, ETFs, bonds or gilts are charged at 0.45% per annum in the ISA and SIPP (capped at £45 per annum in the ISA and £200 per annum in the SIPP). There is no charge for holding shares, investment trusts, ETFs or bonds in the Vantage Fund & Share Account.
There is no annual management charge for holding cash in Vantage.
The management charge is calculated on the chargeable investments you hold on the last day of the month and is applied to your fees account within the first few workings days of the following month.
- I have outstanding fees, how do I pay these?
If you have fees outstanding on your account, we will first look to recoup these fees when future income, capital or loyalty bonus balances become available. If you would prefer to settle the account now, simply log in, select the account where the fee is owed, go to 'Account Administration' and click 'pay fees online using a debit card'.
- Why is there a 'fee sale' on my account?
If there is insufficient cash on your account to pay fees which have accrued on your account, we will collect the amount owed from your investments and restore your Suggested Minimum Cash Balance. There is a £1.50 fee for placing these automated trades.
- What is the platform fee, and why have I been charged it?
Prior to March 2014, most tracker funds and a small number of non-tracker funds carried a platform fee of £1 or £2 per fund, per account, per month.
Since March 2014 this fee has no longer been applied. Instead, all funds are charged as per our new charging model.
- Why has there been a debit from my loyalty bonus account?
When there is insufficient cash to cover the management fee in your income account or capital account, your outstanding management fee is deducted from your loyalty bonus account.
- How does my 'Suggested Minimum Cash Balance' work?
We look at your holdings at the end of each month and suggest a balance (your Suggested Minimum Cash Balance) that should be sufficient to meet any fees or any other outgoings that may arise for the next few months.
Please note that it would be impossible to predict your fees accurately in all circumstances. The value of funds will rise and fall (and therefore so will your fees) and any significant increase in the value of your holding during a month may mean you have to adjust the balance of cash you hold. However, it should prove a good guide in most cases.
You may already be in the habit of retaining a cash surplus on your account and we hope this will help you work out how much you need. We do not stop you from investing (or in the ISA and Fund & Share Account withdrawing) the full amount of cash on your account. The Suggested Minimum Cash Balance is just that - a suggestion - and you are free to hold more or less than the amount we suggest. You will also be able to set your own Suggested Minimum Cash Balance if you wish within 'Account administration'.
Your Suggested Minimum Cash Balance is not held separately from your other cash balances and will continue to be included in any interest payment calculations.
You will be able to view your Suggested Minimum Cash Balance by logging in and selecting an account e.g. Vantage Stocks & Shares ISA. Your Suggested Minimum Cash Balance will be displayed below your 'amount available to invest' to give you a 'balance' which takes the suggested minimum into account. We will also publish your Suggested Minimum Cash Balance within your bi-annual investment report.
If you would like to add money to your account to meet your Suggested Minimum Cash Balance please log in and click on any of the 'top up' or 'add money' buttons within the account you would like to top up.
If you are not able to top up your Vantage ISA or SIPP in this tax year, you may wish to open or add money to a Vantage Fund & Share Account and we will deduct any fees that cannot be collected from your ISA or SIPP from there. Unless you have requested otherwise, we always collect fees from the loyalty bonus account first of all and then from the account they were accrued, before looking at the Fund & Share Account. It is free to hold cash on your Vantage Accounts and it may earn some interest.
- How can I pay fees from outside my ISA or SIPP?
If you wish to protect your tax free investments from fees you can choose to have all fees collected from the Fund & Share Account. To choose this option, please go to the 'Account administration' section of your account and click on 'Fee collection options', then follow the onscreen instructions. If there is insufficient cash on your Fund & Share Account to cover the amount owed the fees will be collected from the account they were accrued.
If there is not enough cash in your Fund & Share Account or in the account where the fee was charged, we will collect the fees owed from your investments and restore your Suggested Minimum Cash Balance. We understand some clients would prefer to avoid this so we provide an alert service which will tell you if you have insufficient cash on your accounts to pay the fees due. You will then have the chance to add money and therefore avoid your investments being sold. To sign up you can set an email alert now.
- How is my cost calculated?
The cost figures shown for investments held within the Vantage Service are based on the total number of units/shares held, multiplied by the average cost price (including dealing charges and stamp duty) of all purchases in the stock. The average cost price is calculated by reference to purchases only; it makes no reference to sales.
- Investor buys 5,000 shares for £1 each at a cost of £5,000
- Average cost price: total purchase costs (£5,000) divided by total number of shares purchased (5,000) = £1 per share
- Share price rises and investor buys another 2,500 shares for £3 each at a cost of £7,500
- Average cost price: total purchase costs (£5,000 + £7,500) divided by total number of shares purchased (5,000 + 2,500) = £1.67 per share
- Share price rises further and investor sells 3,750 shares (half of their holding) for £4 each raising £15,000
- Average cost price remains unchanged
- Share price continues to rise and investor buys 2,000 shares for £10,000
- Average cost price: total purchase costs (£5,000 + £7,500 + £10,000) divided by total number of shares purchased (5,000 + 2,500 + 2,000) = £2.37 per share
- Cost of holding: total number of shares held (5,750) multiplied by average cost price (£2.37) = £13,627.50
The gain/loss figure shown on your investment report is the difference between the cost of your shares or units (calculated in line with the above method) and their market value on 30 April 2014.
Please note that equalisation can alter the way the average cost price is calculated, as will the sale of the entire holding. Please contact us if you would like further details.
- Why is the cost figure slightly less than the amount I invested? What is equalisation?
When you buy a fund between income payment dates, the price you pay includes any income that has been received by the fund since the last payment date and this is rolled up in the price you pay. From your tax perspective this is capital and not income, since you did not hold the units when the income was earned. Therefore the fund manager will reimburse you that part of your capital rather than paying all income in the first income payment. This will reduce your cost figure. It is called an equalisation payment.
- Why do some of my investments have a zero quoted yield or N/A?
The majority of funds quote a yield figure. If the yield is showing as 0, this is the yield that has been declared by the company. If we have not been provided with a yield figure the yield will show as N/A. This does not necessarily mean that the investment has no yield.