Pay less. Keep more

InvestEngine has a simple charging structure. DIY portfolios have no InvestEngine portfolio management fee. Managed Portfolios and LifePlan portfolios have an InvestEngine management fee of 0.25% per year.

The ETFs held in your portfolio also have their own ongoing charges and market spreads. These are built into the performance of the funds and are not fees paid to InvestEngine.

InvestEngine does not charge for opening, closing or administering your account, and we do not charge withdrawal or transfer fees.

Are there any account fees for an ISA, General Account, SIPP or Business Account?

No. InvestEngine does not charge an account fee for ISAs, General Investment Accounts, SIPPs or Business Accounts.

If you choose a Managed Portfolio or LifePlan portfolio, the 0.25% annual management fee applies to that portfolio. DIY portfolios do not have an InvestEngine management fee.

Why am I charged a management fee?

The management fee applies when you choose a Managed Portfolio or LifePlan portfolio. This fee covers the ongoing management of your portfolio, including selecting and maintaining the portfolio in line with the investment approach you have chosen.

DIY portfolios are self‑managed, so InvestEngine does not charge a management fee for them.

How is the management fee calculated?

The management fee is calculated daily and is based on the value of the invested assets in your Managed Portfolio or LifePlan portfolio. The annual management fee is 0.25%, so the daily fee is calculated as a daily proportion of that annual rate.

In simple terms, the fee is calculated for each day that your money is invested in a Managed Portfolio or LifePlan portfolio. We do not charge a management fee on the cash element of your Managed Portfolio.

When will I normally be charged management fees?

Management fees are usually calculated daily and deducted monthly in arrears from your account balance. This means the monthly fee relates to the previous month.

For example, the fee deducted at the start of July would normally relate to the fee that built up during June.

Can I be charged a management fee before the normal monthly deduction?

Yes. If you withdraw money or transfer money out of a Managed Portfolio or LifePlan portfolio during the month, we may deduct any management fee that has built up up to that point.

This can apply to both full and partial withdrawals or transfers. It helps make sure the fee is collected for the period when your portfolio was managed, even if you reduce or move the portfolio balance before the normal monthly fee collection date.

Does this mean I am being charged more?

No. This change affects when the fee may be collected, not the total fee rate you pay.

The fee is still based on the same annual management fee rate of 0.25% for Managed Portfolios and LifePlan portfolios. The process is designed so that each day is only charged once, with no duplicated fee periods.

Has the way fees are collected changed?

The core management fee rate has not changed. What has changed is that InvestEngine may collect accrued management fees when certain withdrawals or transfers happen during the month, rather than only collecting fees through the standard monthly process or when a portfolio is fully withdrawn or transferred.

This means partial withdrawals and partial transfers can also trigger collection of the management fee that has built up so far in that month.

What happens if I make a partial withdrawal?

If you make a partial withdrawal from a Managed Portfolio or LifePlan portfolio, we may deduct the management fee that has accrued from the start of the current fee period up to the withdrawal date.

If this is the first chargeable event in the month, the fee period usually runs from the first day of that month to the withdrawal date. If you have already had a fee collected earlier in the same month, the fee period usually starts from the day after the previous fee period ended.

What happens if I transfer money out of a Managed Portfolio?

If you transfer money out of a Managed Portfolio or LifePlan portfolio, we may deduct the management fee that has accrued up to the transfer date.

This can apply where you transfer to another provider, transfer out of an ISA, transfer out of a SIPP, or move money internally between your own InvestEngine portfolios.

What happens if I make more than one withdrawal or transfer in the same month?

If you make more than one chargeable withdrawal or transfer in the same month, a management fee may be calculated for each event.

Each fee calculation covers only the period since the previous fee period ended. For example:

1. If you make a withdrawal on 10 June, the fee may cover 1 June to 10 June.
2. If you make another withdrawal or transfer on 20 June, the fee may cover 11 June to 20 June.
3. The normal monthly fee at the start of July would then only cover 21 June to 30 June.

This avoids charging the same day twice.

Will I still pay a monthly management fee after making a withdrawal or transfer?

You may still pay a monthly management fee if there is a remaining fee period in that month that has not already been charged.

For example, if you make a withdrawal on 10 June, the management fee may be collected for 1 June to 10 June at the time of the withdrawal. The monthly fee collected at the start of July would then only cover the remaining June period, from 11 June to 30 June.

Are management fees deducted from my withdrawal or transfer amount?

Where a fee is due at the time of a withdrawal or transfer, the amount you receive or transfer may be reduced by the management fee owed.

In some transfer scenarios, the fee may be taken from available cash in the portfolio rather than from the requested transfer amount. The exact treatment can depend on the type of transfer and the available cash in the portfolio.

Do you charge for withdrawals or transfers?

No. InvestEngine does not charge a separate withdrawal fee or transfer fee.

If a management fee is deducted when you withdraw or transfer, this is the management fee that has already accrued for your Managed Portfolio or LifePlan portfolio. It is not an additional withdrawal or transfer charge.

Do you charge a management fee on cash?

No. We do not charge a management fee on the cash element of your Managed Portfolio.

InvestEngine may retain interest earned on uninvested cash held in your account as part of our charges for managing the portfolio, but the management fee itself is not charged on cash.

Where can I see the fees I have been charged?

You can view fees in your InvestEngine account in the Funding section of your profile.

What happens when I close my account or fully transfer my portfolio?

If you close your account or fully transfer your Managed Portfolio or LifePlan portfolio, any management fee that has built up and has not yet been collected may be deducted at that point.

This makes sure the fee only covers the period when the portfolio was managed.

Are promotional bonus clawbacks the same as fees?

No. If you withdraw after receiving a promotional bonus, some or all of that bonus may be clawed back under the terms of the promotion. This is not a fee.

Why might my fee be different from month to month?

Your management fee can vary because it is calculated daily based on the value of your invested assets. It may change if:

• your portfolio value changes;
• you add or withdraw money;
• you transfer money in or out;
• you move between portfolio types;
• fees have already been collected earlier in the month because of a withdrawal or transfer.

Summary

• DIY portfolios have no InvestEngine management fee.
• Managed Portfolios and LifePlan portfolios have a 0.25% annual management fee.
• The management fee is calculated daily and usually deducted monthly in arrears.
• If you withdraw or transfer from a Managed Portfolio or LifePlan portfolio during the month, accrued management fees may be deducted at that point.
• This changes the timing of fee collection, not the annual management fee rate.
• Each day should only be charged once.
• InvestEngine does not charge separate withdrawal or transfer fees.

InvestEngine is committed to offering a cost‑effective platform for UK investors. Here’s a breakdown of our fees:

Platform fees

• ISAs and SIPPs: No platform fees
• Business accounts: No platform fees
• General investment accounts: No platform fees
• DIY Portfolios: No platform fee
• Managed Portfolios: 0.25% per annum

These fees are calculated daily and deducted monthly from your account balance. 

You can view these fees at any time in your InvestEngine account in the Funding section of your profile.

ETF costs

While InvestEngine doesn’t charge dealing fees, the ETFs themselves have their own costs:

• DIY Portfolios: ETF charges start from 0.03% per annum, depending on the ETFs selected.
• Managed Portfolios and LifePlans: Average ETF charge is 0.12% per annum.

These charges are built into the performance of the ETFs. 

Additional costs

There is also a small difference‑ the market spread, between the buying and selling prices of the ETFs. With our Managed Portfolios and LifePlans, these spread costs average 0.08% per annum. 

To keep our service as low‑cost as possible, we retain the interest on any uninvested cash in your account. It is important to note that we do not charge a management fee on the cash element of your Managed Portfolio. Instead, we retain all of the interest earned on this cash as part of our charges for managing your portfolio. This means that you will not receive interest on the cash held within your portfolio, and we will retain any interest paid by our banking or custody partners.

InvestEngine does not charge for withdrawals or transfers, and there are no hidden fees.

Related article: How are fees deducted at InvestEngine?

Investing in ETFs through InvestEngine can be a tax‑efficient way to grow your wealth — especially when using accounts like ISAs or SIPPs. But if you’re investing through a General Account, you will need to consider tax on interest, dividends, or capital gains.

Here’s a simple overview of how tax works for UK investors.

Tax‑free wrappers: ISA and SIPP

If you’re investing through a Stocks & Shares ISA or Self‑Invested Personal Pension (SIPP):

• You won’t pay Income Tax, Dividend Tax, or Capital Gains Tax on your investments
• There are annual contribution limits for both, check our ISA and SIPP FAQs for details
  Withdrawals from a SIPP may be subject to tax depending on your age and how much you take

General Investment Account (GIA)

If you’re using a GIAt, your investments will be subject to UK tax depending on how much income or gain you make.

You may need to pay:

• Dividend Tax — if you earn over your tax‑free dividend allowance (£500 in the 202025/26 tax year)
• Capital Gains Tax (CGT) — if your total gains across all investments exceed the annual CGT allowance (£3,000 in 2025/26)
• Income Tax — on any interest you earn (for example, from bond ETFs), above your Personal Savings Allowance (£1,000 for basic‑rate taxpayers; £500 for higher‑rate)

Understanding marginal tax rates on investment income

If your investment income goes over the relevant tax‑free thresholds, the excess will be taxed at your marginal rate, the rate of tax you pay on your regular income.

For example:

• Basic‑rate taxpayers (earning £12,571 – £50,270) would pay:
  • 20% on interest
  • 8.75% on dividends
  • 10% on capital gains
• Higher‑rate taxpayers (£50,271 – £125,140) would pay:
  • 40% on interest
  • 33.75% on dividends
  • 20% on capital gains
• Additional‑rate taxpayers (over £125,140) would pay:
  • 45% on interest
  • 39.35% on dividends
  • 20% on capital gains

For the latest tax rules, visit HMRC: Tax on savings and investments.

InvestEngine doesn’t provide personal tax advice. Your individual circumstances may affect how much tax you pay and you’re responsible for reporting any taxable income to HMRC. Depending on your situation you should consult HMRC or a qualified tax adviser for personalised guidance.

Need more information?

• HMRC: Tax on dividends
• HMRC: Capital Gains Tax
• ISA and SIPP tax rules
• Tax relief on pensions

You can also download your CTC or CGT Report from your dashboard at the end of the tax year.

When investing in ETFs, it’s important to understand the potential impact of withholding tax:

• Withholding Tax: Some countries deduct tax at source on dividends paid to foreign investors. This means the tax is deducted from the dividend before it’s paid, meaning investors receive less than the full dividend. 
• Double Taxation Agreements: The UK has agreements with many countries to reduce or eliminate withholding tax.

Withholding Tax and ETFs

Even when buying a single ETF, that fund may hold many international investments‑ and withholding tax is still applied at the fund level when those underlying companies pay dividends.

Example:

• You invest in an Irish‑domiciled ETF (like iShares S&P 500 UCITS ETF — CSP1) which holds US stocks.
• The US imposes a 15% withholding tax on dividends going to Irish funds (thanks to the US–Ireland tax treaty).
• So, if Apple pays a $1 dividend, only $0.85 reaches the ETF.

You, the investor, don’t see the tax directly‑ but it reduces the income the ETF receives and therefore what it can pay out or reinvest.

This means the effect of withholding tax is typically reflected in the ETF’s performance. For specific details, consult the ETF provider’s documentation.

Note: Tax treatment depends on individual circumstances and may change. Seek professional advice if unsure.

InvestEngine ensures that all ETFs available on our platform have UK Reporting Fund Status.

Excess Reportable Income (ERI) is the portion of income accumulating funds receive but do not distribute to investors‑ essentially, income that’s reinvested back into the fund.

Even though you don’t receive this income as cash, HMRC still considers it taxable.

ERI applies to the accumulating share classes (marked as ‘Acc’ or ‘Accumulating’) of offshore funds (i.e. most Irish or Luxembourg‑domiciled ETFs). 

No ERI reporting or tax applies inside ISA or SIPP wrappers.

For more information, refer to HMRC’s Offshore Funds Manual. Please consult a tax adviser for guidance on reporting ERI.

InvestEngine offers Business Accounts for UK limited companies. Here’s what you need to know about taxation:

• Corporation Tax: Realised gains from investments are usually subject to corporation tax
• Dividend Income: Generally exempt from corporation tax, but exceptions apply
• Interest Income: Taxable as part of trading profits

For more information on how InvestEngine Business Accounts work, see our Business Accounts FAQs.

For tax‑specific guidance, refer to HMRC’s Corporation Tax Manual.

Note: Tax treatment depends on your company’s individual circumstances. Professional advice is recommended.