An update on fractional shares

Good morning. We wanted to take the opportunity to share some good news!

As you may already be aware, fractional shares have recently been confirmed as ISA-compliant. This means that, as of November 4th, fractional shares are deemed appropriate for stocks and shares ISAs by HMRC.

What are fractional shares?

In basic terms, fractional shares allow investors to buy a portion of a stock rather than paying the full share price. They’re an important tool in creating effective, diversified portfolios.

Share prices can be high, particularly in countries like the US, so fractional shares lower the barrier to entry and mean that more people can start investing with the portfolio that’s right for them, not just the portfolio they can afford.

What’s the update?

Thankfully, nothing has changed. There has been a degree of uncertainty this year around whether or not fractional shares would continue to be eligible for ISA investing.

The update from HMRC means that investors can confidently include fractional shares in their ISA portfolios, as they’ve been officially allowed. Investors will be grateful for the confirmation, though we’ve always considered fractional shares an important part of investing in 2024.

We’re proud to have played a role in clarifying the status of fractional shares with HMRC. They’re an important tool in any investor’s arsenal and our platform makes full use of them in bringing diversified, long-term investing to more people.

Important information

Capital at risk. The value of your portfolio with InvestEngine can go down as well as up and you may get back less than you invest. ETF costs also apply.

This communication is provided for general information only and should not be construed as advice. If in doubt you may wish to consult a professional adviser for guidance.

Tax treatment depends on personal circumstances and is subject to change, and past performance is not a reliable indicator of future returns.

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