HMRC Ends Ban on Fractional Shares in ISAs Ahead of New Rules

The UK’s tax authority has stopped enforcing a ban on tax-free individual savings accounts holding less than a full share of a stock ahead of an expected rule change by the UK government later this year.

“The Government has committed to changing the ISA rules to allow certain fractional shares,” a spokesman for HMRC said. “Taking a pragmatic approach, we will not raise an assessment on managers or investors for fractional shares acquired before these changes are made.”