After years of ISA providers allowing fractional shares to be held in ISAs, this practise is being disputed by HMRC, on the basis of regulations from the 1990s. We want the Government to make changes to relevant regulations to make it clear fractional shares can be held in an ISA.
You may be interested in these active petitions
We believe any steps to prevent fractional shares being held in ISAs would be a backwards move that may make investment in the UK dry up unnecessarily, and penalise smaller investors who are building their investment pot.
It could also damage confidence in investment and investing and mean that more people might be tempted to either give up investment if they are now to be taxed on something they thought was an account free of capital gains and dividend taxes. The talk of potential fines further stands to damage the confidence of retail investors who are beginning their investment journey.