Post ISA Charges

I understand that the ISA is £3 a month, but I have a question on “post” subscription charges.

So if I were to open a FreeTrade ISA tomorrow, I would be charged £3 per month for a year. If in the tax year 2022-23 i do not resubscribe to the FT ISA, but I leave my shares and money in place, would I still be charged?

In short, is the £3 a subscription fee or an admin fee?

Thanks

You will still be charged until you close it. There is no ‘resubscribe’. You either have an ISA open or you don’t. You pay for having one open.

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It’s an account/platform fee. You pay it as long as the ISA account is open and has nothing to do with whether or not you have subscribed in a particular year. This is standard practice for ISA platform fees.

Out of interest, have you encountered some other platform that only charges fees in years you subscribe to an ISA?

I don’t think this is strictly true, but thanks anyway. I believe it is possible to have an ISA open with out being subscribed (the term used by gov btw).

Eg you can have two S&S ISAs open in a single tax year, but you can only contribute and subscribe to one.

Thanks, this is pretty much what I assumed. I have not looked too deeply yet into where this is/isn’t true. I’m just looking to diversify my ISAs over different platforms over years, while minimising charges where I’m not strictly active.

iWeb. They charge a one-time fee for opening an account. Other than a £5 trading fee per trade there are no other platform fees at all.

Yes, but platform fee is always absent with them. That’s not contingent on whether or not you are subscribing.

Similarly their other fees not contingent on whether or not you’re subscribing.

Any empty / unsubscribed ISAs are closed at the end of tax year.

An empty ISA is not necessarily the same an non-subscribed ISA.

Empty would mean no money or shares in the account. I could open an account, add funds and then remove funds to zero. The account would be zero but I’m still subscribed for the tax year.

Inversely, I could haved added money last tax year, but not this one. My account would have a greater than zero balance but I would not be subscribed for the current tax year. There would be no reason or need for the (hypothetical) platform to close the account beyond not receiving admin fees.

Although, I agree that a zero balance, unsubscribed account is a closed account.

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