We need your help! Fractional Shares in ISAs

Fractional shares are a core part of our product and one of the key ways that we’ve moved forward on our mission to get everyone investing. Critically, fractional shares allow retail investors to start building a diversified portfolio with less. But your ability to hold fractional shares in your ISA is being put at risk by HMRC.

We are asking the Government to clarify the ISA Regulations to specifically include fractional shares as a qualifying investment, and we need your help! Join us in writing to HM Treasury by 13th October.

Support fractional shares in ISAs

  1. Download/save a copy of this template letter.
  2. Go to the Treasury’s portal for submissions for the Autumn Statement
  3. Select “Personal” and “Savings” tax
  4. Attach the template letter and submit!

Why is this a problem?

HMRC stated recently that they believe that the current ISA Regulations do not permit fractional shares. We believe that this is wrong and is not a good outcome for our customers and the retail investment industry as a whole in the UK.

We strongly believe fractional shares make investing more accessible for customers, especially those just getting started. It aligns directly with our mission to “Get Everyone Investing”. Fractional shares offer investors materially the same benefits and protections as whole shares.

What are we doing about it?

We have made clear to HMRC that we disagree with their interpretation of the ISA Regulations. We understand a number of other investment platforms are doing the same. We are continuing to engage with HMRC, the FCA, and the Government about resolving this matter.

We are also asking the Government to clarify the ISA Regulations to make it clearer that fractional shares are a qualifying investment, and to announce this as part of the Autumn Statement in November 2023.

What happens next?

We want to protect customers’ best interests and deal with this situation in the best way for them. In cases where there is an issue with ISA accounts that can be repaired, HMRC typically requires the ISA Manager (Freetrade in this case) to settle any tax due.

However, we’re resisting HMRC’s position that fractional shares are not permitted in ISAs. There is a possibility that, without further clarification on this, HMRC could force us to stop offering fractional shares in ISAs. This is an outcome that would undermine the progress that has been made opening up retail investing to more British savers.

While fractional shares can benefit investors of all sizes, banning them from ISAs would create barriers to entry for those investors with more modest amounts. This runs counter to our mission and our beliefs as a company.

We feel it’s important that we robustly defend the real benefits that fractional shares offer to ordinary investors. It is very clear to us that fractional shares make investing more accessible and make it easier for investors to be able to effectively build a diversified portfolio.

Please only complete this form if you’re a U.K. resident!



Thanks to you and the FT team for taking postive action on this.

I have raised this concern more than most - but I also champion the good work FT do.

This is a very timely, welcomed and proactive response.

I encourage everyone to get involved.

Good work and thanks :blush:


Letter sent :+1:

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nice one.

letter sent.


Done :white_check_mark:

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Respond as an “Individual”, tick “Personal Tax” & “Savings”. It asked for a summary, so I added the title as below.



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@acamp - You should be emailing all your UK customers about this.


Done, but it’s a bit of a shame that there is (currently) no joined-up response with other brokers. Surely there would be much more weight behind a joint press release from the likes of Freetrade / Trading 212 / eToro etc (and even some legacy brokers) that hits the news rather than the tiny percentage of users who will actually take the time to do as we’re asked.

Are the media team actively working to engage with other brokers? I don’t see anyone gaining from this potential change…


This is a great, win-win move. If the goverment clarifies the rules to make it clear fractionals can be held in an Isa, FT has led the charge. If HMRC gets its way, at least you’ve been fighting investors’ corner.

Bravo :clap:


Submitted :crossed_fingers:


There’s a few active users on here who may well work for other brokers so hopefully they get the message :raised_hands::wink::fishing_pole_and_fish:


It looks like they are, I got an email this morning


Appreciate the feedback. We’re doing a lot of additional things behind the scenes that we’re not necessarily narrating out in the public. This is just one place where we can really get everyone in our community to rally behind this cause!


Hey @jstar88 it’s going out in waves. The system throttles some of these emails. Ones rolling to all customers shortly!


Done! :heart:

The only fractionals I have in my ISA now is McDonald’s Corporation. I would like to buy Meta Platforms (among others) at a smaller amount but I want to make sure this issue is sorted out first. Thanks for the email being sent out and good luck everyone!

100% - If you want people to be able to invest in companies and take financial responsibility for their own futures this is a no brainer.

If anyone is a resident of Godalming, Farnham, Haslmere or the surrounding area a message to your local MP the art Hon Jeremy Hunt wouldn’t hurt.


Done and left a very clear message on how I view the appalling HMRC position! And got 3 other members to copy paste the template emailed out. :ok_hand:


All done :slight_smile:


Submitted the form