I can see that costing thousands!
I think you might be underestimating the possible cost. Thousands if thair lucky maybe and irs a quick and easy case
And i wonder if hmrc are insistent, what about the other companies? Would they get involved.
Anyway getting ahead of the issue. I hope they all end up agreeing that the rules can work with fractional shares if held appropriately
That’s true, Invest Engine on the other hand if I am correct in thinking do fractional ETFs even if it is not the underlying shares being fractionalised. 
Surely that would set a precedent, if Freetrade are found to be breaking the law in court over fractional shares, everyone else will be guilty of it too.
It would make sense for the industry to come together to get clarity on this as it effects them all.
Is there an industry body that represents investing platforms? What’s their view on this?
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Im not sure. The wider point I was really trying to make was if one of these investment platforms was found to be breaking some rule by HMRC then surely others would fall foul of it too if they are also offering the same feature (in this case fractional shares in an ISA).
Personally I really hope we are allowed to own them.
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No new info, but further coverage this weekend highlighting Freetrade:
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Good to see others are taking the same position.
I know @acamp stated already that FT are being proactive on this and this story bares that out.
Surely worst case scenario is investors have to round up or down and FT implements a mechanism to make that easy? To go as far a penalising would be incredibly difficult to implement and create chaos.
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In which case they would have to fine ALL companies that offer fractional UK shares
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Indeed
Just got an email back from my local MP after writing to him about this. He plans to write to the Chancellor about what is being proposed.
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I don’t think that is worst case.
Worst case I’d say is that all fractions are treated separately, with gains/losses materialising each time they make a whole. Or perhaps worse, the ‘whole’ shares may still be treated as derivatives.
Clearly, best case could and probably will be a lot better than that.
I don’t think HMRC’s argument makes sense, considering all shares are by definition fractions anyway. The size of the share is just an arbitrary number.
But I don’t make the rules, so who knows how this will play out.
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It needs addressed.
Worst case scenario… albeit extreme … is that HMRC say that FT ISAs are in fact not ISAs at all but GIAs.
Until there is clairity, that small risk remains and harms FT and consumer confidence.
Personally I would pefer that FT, in the absence of a quick fix, give customers the option to round up or down and stick to whole share selling until this is resolved.
Then , if HMRC look at ’ the books ’ they find no fault and move on, hopefully.
I accept this is worst case scenario and extreme, but also this is serious and needs every consideration.
I guess there’s several scenarios here. HMRC accept the interpretation that fractional shares are acceptable in ISA’s then theres no further problems. HMRC uphold their stance that is not allowed then they could force brokers to sell customers fractional shares. They could also apply taxation to these.
Or there could be industry wide fight back with litigation.
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Indeed.
It’s not a cause for panic just yet, but it is a time for a concerted effort to resolve.
A relatively small outfit like FT cannot afford to be caught out here.
I’m reassured that Alex said FT were looking at this proactively. However I expect updates and reasonably quick progress.
Ultimately I’m paying FT for an ISA product that HMRC are saying is not playing to the rules.
FT might be right, but HMRC own the ball and they determine the rules, so FT have to resolve it.
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HMRC are never going to come after people for CGT due on fractional shares. Relax.
It would impact loads of people (who all believed they were doing the right thing). Bring in hardly any tax revenue and be an administrative and PR nightmare.
The government would 100% intervene to stop it.
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Considering you can sell by number (or fractions ) of shares, I’m disappointed we still can’t buy by number of shares
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But while it is a possibility , no matter how small, its a concern.
While it might not come to it, even the idea and the publicity already posted about it is a negative influence on FTs growth and sustainability.
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Yes an option to buy whole shares by amount in real time is required.
Ideally also the option to round up current holdings to whole shares.
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Exactly, customers need to have faith that their assests are safe and protected from the dreaded taxman (however remote the possibility maybe).
It’s made headlines, caused a stir and potentially could put future investors off, thats not what we need.
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