Hargreaves Lansdown Fees and Charges: Annual Costs and Government Taxes

Understanding Investment Fees and Costs

Making informed decisions about your investments requires a clear understanding of the associated fees and charges. Hargreaves Lansdown (HL), a popular investment platform, offers a range of investment options and services at various costs. This article provides an overview of HL's annual fees, dealing charges, and government taxes to help you assess the potential expenses of investing with HL.

Annual Investment Fees

Platform Fees

HL charges an annual platform fee based on the value of your investments held on their platform. The fee is tiered as follows:

• £45 for investments between £0 and £250,000
• 0.25% for investments between £250,000 and £1 million
• 0.1% for investments over £1 million

Fund Management Fees

In addition to the platform fees, some funds and investments may have their own management fees. These fees vary depending on the specific fund or investment chosen. HL's fund research and comparison tools provide information on the management fees associated with different investments.

Dealing Charges

Share Dealing Charges

When buying or selling shares, HL charges a dealing charge. The charge varies depending on the type of order and the size of the transaction. Typical dealing charges range from £10 to £11.95 for online trades and higher for telephone trades.

Bond Dealing Charges

Dealing in bonds also incurs charges. The charges may vary depending on the type of bond and the size of the transaction. HL provides a detailed breakdown of bond dealing charges on its website.

Government Taxes

Stamp Duty Reserve Tax (SDRT)

SDRT is a government tax applied to share purchases in the UK. The tax rate is currently 0.5% of the purchase price. HL automatically calculates and deducts SDRT on eligible share transactions.

Capital Gains Tax (CGT)

CGT is a tax paid on profits realized from the sale of investments. The tax rate varies depending on the taxpayer's circumstances and the length of time the investment was held. HL does not calculate or deduct CGT; it is the responsibility of the investor to report and pay any applicable CGT.

Conclusion

Understanding the fees and charges associated with investing is essential for making informed decisions. Hargreaves Lansdown provides a transparent breakdown of its investment fees and dealing charges. By carefully considering these costs and government taxes, investors can make informed decisions about the best investment options for their needs and financial goals.