REITs in ISA

Right, this has been asked for before many times over. Please support this. Enough said. I’m sick of asking.

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I’m sure Freetrade is even more motivated to support that now that they’ve heard your lovely words of encouragement.
#entitlementnow

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Tried being nice, waited 2 years yet still no sign of any progress. Imagine waiting this long for them to support something almost all brokers support… smh

Not to mention the plus fee I’ve been paying for half the features…

When was the last time you were really rude to someone and they turned around and did exactly what you asked … I though so.

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If you don’t feel the Plus offering is sufficient, you are under no obligation to keep it and can cancel at any time.

I’ve been waiting for nationality declaration since I joined Freetrade, but I understand that other stuff takes priority, especially in the early years of a venture such as this, and I can always use another broker for any such stocks if need be. I don’t get all salty about them not mirroring what other brokers do.

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Neil, send me all your money. NOW.

*waits for the cash to come rolling in*

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ah but you see… you cant use other brokers. You literally have to sell your portfolio and request an ISA transfer.

You’d be surprised, after asking nicely for 2 years, what more do I stand to lose other than time?

I would understand your stance if you

A. Didn’t have other options (GIA, Other investments or transfer to another broker)
B. If FT had made some contractual promise and gone against it.

Frankly this community doesn’t have time for mud sling and name calling. If you have something constructive to add then we’re all ears but we can’t fix your issue.

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A. Why would I want my money in a GIA instead of an ISA when I’m paying £10 for plus per month and I’m just about maxing my ISA allowance? I’m literally worse off tax-wise if I go through my GIA.

I mean seriously… a transfer to another broker? That lit takes 30 days.

B. This is a fair point, but wasn’t the point of this brokerage to make it easier for the retail investor to get involved - and with other brokers like 212 offering REITs inside ISAs it’s just not enough. FT need to be more competitive, people have been asking for investment pies since the launch and we’ve still seen zero progress of that too.

How can I be labelled as the bad guy here for being angry that my broker has failed to meet my needs after 2 years of patient waiting. I don’t want to move to any other broker, FT is perfect for me in every way except for the REITs in ISAs. I can almost guarantee you I’m not the only one that is disgruntled about it. Especially with the talks around inflation, what better way to hedge against it than REITs? It’s ridiculous.

And name calling? I haven’t done anything to that nature. I’m just annoyed that there has been no news on this for years. How can you not appreciate my angry attitude, I’m sure you’d be the same.

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I’m just going to add one more thing here, I’m not disrespecting the good work freetrade has already done. I want to make that absolutely clear.

To be honest I’m really disappointed I can’t invest in U.K. REITs in my Freetrade ISA. Given how often they come up in the honey newsletters and how often ISAs are pitched as good for tax purposes, it’s a real shame you can’t use them both with Freetrade.

So while the original request might not have been phased as politely as it could have been, I would want to support the ask.

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Don’t get me wrong I want reits in the ISA but it was never a feature, if it was an important requirement for your account I would have assumed you would have opened and ISA elsewhere this year at least?

It’s not a good idea to go with things for what might be, you can only go on what’s they actually offer

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I agree, but REITs don’t take up my entire portfolio… So I have to go with what’s best for the majority of my portfolio.

For me it was never made clear that this was a limitation of the Freetrade platform, I only found out after I had switched.
It’s not the end of the world but is a real disadvantage compared to other brokers

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Stop being mean to Kieran !

How can it be that “REITS in the ISA but it was never a feature” ???

It would never have occurred to me that Real Estate Investment Trusts would be excluded from “Investment Trusts”.

Currently I have a dozen REITS - about a quarter of my portfolio …
…and learning that Freetrade doesn’t do REITS is both “news” and a shock…
(and another bar to transferring my account to Freetrade).

Please can someone explain what makes REITS harder to trade and administer ?

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Probably due to the way that REITS dividends are handled. Because the tax on REIT dividends is paid net of tax (ie. after the tax has been paid to HMRC), this is problematic where ISA’s a concerned as they are supposed to be gross within the ISA (ie. without tax deducted).

From my (limited) understanding, in this instance, the tax is normally paid by the ISA provider, and they then claw that back from HMRC. Probably waiting for this part of the process to be put in place before they can be added to ISAs.

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Finally! A reply that makes sense. Okay, so let me get this straight… if I buy a REIT in my GIA, does this mean I shouldn’t have to pay tax on the dividends given by that reit or any capital gains appreciation?

I’m glad I’m not the only one who feels strongly about this.

Possibly, but I’m not overly sure. Depending on what type of dividend the REIT pays, they could be treated differently from normal dividends.

One dividend type - property income dividend - is classed other income for tax purposes, which would be recorded on your tax return. So for GIA account a basic rate taxpayer shouldn’t have anything further to pay, but a higher (40%) rate one may do. (This obviously wouldn’t apply to reit dividends in an ISA)

That is my understanding of it, I could have understood it incorrectly, so please don’t take it as absolute fact.

That’s really all sort of all I know about them. I did find a really easy to understand guide on them online a while back, if I find it again, I’ll post it here.

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