HM Revenue and Customs (HMRC) has recently reversed its position from last year in allowing fractional shares in Individual Savings Accounts (ISAs).
The move from the UK tax authority now means that Freetrade ISA customers can continue to hold, buy and sell fractional shares in these tax-efficient accounts.
Fractional shares enable investors to build a diversified portfolio and access a wider range of investments. We’re pleased to have worked closely with the government and HMRC to reach an outcome that benefits retail investors in the UK.
Some things to be aware of:
American Depository Receipts (ADRs) cannot be traded fractionally at this time, however, we will continue to explore ways to enhance our fractional offering where we're permitted to do so.
You won’t be able to place Triggered limits for fractional shares just yet, but it’s coming very soon.
We’ll reach out in the coming days with more information.