Ask your beginners questions here 🐣

(Emma) #201

You get an intercom notification when a dividend is paid. It’s planned to have an item in the activity feed as well.

Know your first question had been answered a couple of times but can’t find a link atm. They’re safe as they’re held separately is the short answer. But they aren’t going to stop trading.

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(Alexander) #202

So the money from dividend will just appear in your account automatically on the date it is due to be paid ?
I wasn’t think they are going to just stop trading and run with my money but if companies go bust and just wondering how I would get hold of my shares if that did happen would i need to take note of a certificate number in order to transfer them to another broker ?

(Emma) #203

It could take a few days after the due date depending how quickly the company sends it, if it’s paid by cheque etc

Found it. Earlier in this thread

(Rob N) #204

The key thing is that your investments are safe and secured by FSCS, who as far as I’m aware are actually very quick to resolve these things, so you wouldn’t have to wait ages to get back your holdings.

But in the unlikely event of Freetrade failing I think another broker would buy the client book so your assets would move over to them.

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(R) #205

Hi there, noob question here. If I buy shares in a company through here, am I entitled to things like listening in to investors meetings, share holder perks, voting where applicable, etc? If so, how do I go about proving ownership?

I’m sure there is a lot of variation between companies, but in general?

(R) #206

It’s really cool, you get a direct message telling you the dividen you got and the cash just appears in your Acc when it’s awarded as cash obviously. I got my first one recently and it was awesome :sunglasses:

(R) #207

Jesus that is a scary amount of assets to momentarily be floating in the wind. Crazy.

(John) #208

Evening all! Stocks & Shares ISA question here.

I note the following from a Freetrade blog post:

  • You can only contribute to one of each type of ISA each tax year.
  • Based on the current rules, you can keep as many ISAs as you want open.

My question is on the specific definition of “contribute” in this. Does this only refer to depositing cash into the Freetrade ISA account? Or does it also include any one of: buying shares, selling shares, receiving dividends, buying shares with received dividends or withdrawing cash from a Freetrade ISA?

I am intending on depositing a lump sum of cash into the account before the 5th April with which I will buy/sell shares in the next financial year. I do however want to keep my options open for the next financial year and don’t want to prevent myself from opening a new Stocks & Shares ISA with a different provider in the coming financial year.

Thanks in advance,

(#18 414) #209


Unless I misunderstood, which wouldn’t be the first time btw, a contribution refers only to depositing/ transfering money into the S&S ISA.

Once inside, according to current rules, you can buy individual stocks, ETFs or Trusts. The proceeds derived from either received dividends or through capital gains on the sales don’t count as contribution to the S&S ISA. And they are tax exempt forever. Or at least till some government decides to change the rules.

(John) #210

Raul, thanks for your reply.

That is what I thought (and hoped) and it is nice to hear it from another source. I guess the key point is that the whole Freetrade ISA account counts as the ISA, cash and all.

(Jim) #211

Yes, perfectly acceptable.

(Mark) #212

Forgive me if this question has already been asked .

I know when purchasing US stocks there’s a 15% tax, Regardless of being in an ISA or not .

But being in a ISA and purchasing ETF’s , do you still get that US tax ?
I’ve noticed some ETF’s have some US stocks in them and some entirely US .

Also are all ISA dividends tax free if they have US links , I presume you still acquire dividends from ETF’s like you do from individual stocks .


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(Mark) #213

Can Anyone answer this question please :point_up_2: :+1:

(Emma) #214

As far as I know there’s no tax on US stocks. Certainly didn’t appear on the CREST note

The ISA makes no difference to the tax on dividends as it’s a US charge

You get dividends from ETFs but you can’t buy ETFs domiciled in the US. EU domiciled ones will have that tax taken off before they send the dividend so you won’t see it

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(Mark) #215

So in an ISA purchasing US stocks or US related ETF’s like the s&p500 etf , you get tax on dividends and any gains ,
But if purchasing any UK stocks in a ISA you don’t get tax on divs and gains .

(Emma) #216

The S&P 500 in app is domiciled in Ireland so the dividend paid doesn’t have withholding tax. Presumably they pay the withholding tax on the dividends they get from the constituent shares they hold in the companies but it’s not something we see.
Here’s a screenshot of a dividend payment I got this week

(Vladislav Kozub) #217

You won’t be taxed on gains ever if bought within an ISA, even if you buy US stocks.

You also will not pay dividend tax in a way UK residents do - 7.5%/32.5%/38.1% depending on your income levels.

However, before you get your dividends credited to your account, the US will take 15% off regardless of your income level or the amount you will be paid. This is an unavoidable charge which neither Freetrade nor the UK authorities have any power against. On the bright side, Freetrade has facilitated a reduction from 30% to 15% for its users (everyone pays 30% by default) and you also do not need to be concerned about it when it comes to self-assessment, it is simply subtracted before your dividend cash leaves the US.

(Mark) #218

Brilliant , that’s cleared that up :+1::+1:

(Gareth) #219

I’ve got access to the Android app, and have just made my first deposit! However, I’m debating whether I should hold of for the ISA to launch? I want to avoid having to do a self assessment tax return for my investments, but I’m wondering if there’s an easy way of using the General Investment Account? I’ve looked into the government’s 'real time’ Capital Gains Tax service, but does anyone know how easy it is to use? Is a lot of paperwork involved?
I know we get a dividend allowance of 2k, and CGT of 11k so I could easily keep my investments under these limits until ISAs launch on Android? Or maybe I should just wait until the summer before making any trades?

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(Louis Otto) #220

I think you only need to do self assessment if you exceed the capital gains quota, so don’t worry about it for now. You can always sell your investments and rebuy in an ISA when it makes sense for you to do so.

You do not have to pay tax if your total taxable gains are under your Capital Gains Tax allowance. You still need to report your gains in your tax return if both of the following apply: the total amount you sold the assets for was more than 4 times your allowance. you’re registered for Self Assessment .

I wonder if it’d be a cool feature if Freetrade could automatically sell our investments when they hit 3.9x in a GIA :wink:

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