HMRC have confirmed that savers will be able to hold fractional shares in ISAs.
The Conservative government originally announced this change in the 2023 Autumn Statement, but it was put on hold as a result of the 2024 general election. After some uncertainty, HMRC have now confirmed that the new government will implement the measure.
The change may come into effect as early as 30 September, according to draft secondary legislation seen by the Financial Times. HMRC have confirmed it will not raise an assessment on managers or investors for fractional shares acquired before the change takes effect.
Katharine Arthur, Partner at haysmacintyre, described the news as ‘unquestionably a positive move’. In a letter to the FT, Arthur said ‘it removes a rule that was unfair, generated uncertainty and was at odds with a desire to encourage share ownership and investment in businesses’. It would likely ‘encourage a far greater number of people to invest in shares, even if only in small amounts’, she added.
HMRC have confirmed that savers will be able to hold fractional shares in ISAs.
The Conservative government originally announced this change in the 2023 Autumn Statement, but it was put on hold as a result of the 2024 general election. After some uncertainty, HMRC have now confirmed that the new government will implement the measure.
The change may come into effect as early as 30 September, according to draft secondary legislation seen by the Financial Times. HMRC have confirmed it will not raise an assessment on managers or investors for fractional shares acquired before the change takes effect.
Katharine Arthur, Partner at haysmacintyre, described the news as ‘unquestionably a positive move’. In a letter to the FT, Arthur said ‘it removes a rule that was unfair, generated uncertainty and was at odds with a desire to encourage share ownership and investment in businesses’. It would likely ‘encourage a far greater number of people to invest in shares, even if only in small amounts’, she added.
