We use some terms throughout this Appendix that have specific meanings. They are as follows:
"ISA Regulations" means the Individual Savings Account Regulations 1998 (SI1998/1870) as amended from time to time
"Freetrade ISA" means a Freetrade Account which is a Stocks & Shares ISA;
"Stocks & Shares ISA" means a "stocks and shares account" as defined in the ISA Regulations;
The terms in this Appendix only apply to those investors who wish to apply for a Freetrade ISA and hold Securities within a Freetrade ISA. Together, our Terms & Conditions and this Appendix form one legally binding agreement between you and us where you have taken out a Freetrade ISA, in respect of the Securities held within a Freetrade ISA. For Securities that you hold outside of your Freetrade ISA, our Terms & Conditions alone will continue to apply to those Securities without any change.
Unless we state otherwise, all words used in this Appendix have the same meaning as asset out in our Terms & Conditions. Where the terms in this Appendix conflict with our Terms & Conditions, the terms in this Appendix shall prevail. Where any of the terms in this Appendix or our Terms & Conditions conflict with the ISA Regulations, the ISA Regulations shall prevail.
Only certain persons are eligible to apply for and hold a Stocks & Shares ISA, under the ISA Regulations. By agreeing to the terms of this Appendix you are confirming to us that you are eligible to hold a Stocks & Shares ISA under the ISA Regulations, and in particular you confirm and declare that:
The Freetrade ISA benefits from certain tax treatment under the ISA Regulations, namely that it will be free from Capital Gains Tax and other taxes that would otherwise be payable on profits from price increases and income derived from Securities. We cannot guarantee that this tax treatment will not change if the ISA Regulations are changed. If the tax treatment does change, unless we notify you otherwise your Freetrade ISA will continue but will be affected by the change. This Appendix is based on our understanding of UK Law at the date that this Appendix is published.
The beneficial tax status of your Freetrade ISA ends on your death. If you are married or in a civil partnership however, then it may be possible for your spouse or civil partner to continue to benefit from the beneficial tax status of your Freetrade ISA.
If for any reason your Freetrade ISA fails to comply with the ISA Regulations, your Freetrade ISA will become void and cease to benefit from the tax relief available under the ISA Regulations and we will notify you of this fact.
All Securities within your Freetrade ISA must remain in your beneficial ownership and must not used as security for a loan. The title to all Securities held within your Freetrade ISA will be registered in the name of our nominee – see 'Use of Custodians' and 'Your Securities' in our Terms & Conditions.
All share certificates or other documents evidencing title to the Securities held within your Freetrade ISA will be held with us as ISA manager or as we direct.
If you elect:
Where any of the Securities that may be bought or sold using the Services are not eligible to be held within the Freetrade ISA under the ISA Regulations, we will notify you of this and will not permit those Securities to be held within the Freetrade ISA.
If as a result of a 'corporate action' we receive Securities or other investments which are not eligible to be held within the Freetrade ISA under the ISA Regulations, we will transfer those Securities or investments directly to another Freetrade Account if you have one or we may create one in your name for this purpose. You may then have the option to sell or otherwise dispose of those Securities or other investments and close the additional Freetrade Account or retain the Securities or other investments in that Freetrade Account. In these circumstances we will contact you to explain your options.
If we delegate any functions or responsibilities under our Terms & Conditions we will take steps to satisfy ourselves that those parties will be competent to undertake those functions and responsibilities.
Upon receiving a valid instruction from another ISA manager we will transfer to another ISA manager within 30 days. In order to do this we will sell all the Securities held in your Freetrade ISA at market value, deduct any fees and costs payable by you from the proceeds and then transfer the remaining cash amount to your new ISA manager.
Upon receiving a valid Instruction from you to withdraw funds from your Freetrade ISA, we will execute that Instruction within 30 days as set out at 'How we execute Instructions to withdraw funds' in our Terms & Conditions. You should note that withdrawing an amount from your Freetrade ISA will not increase your subscription limit for that tax year, and you may not be able to pay any withdrawn amount back into your Freetrade ISA in the same tax year.
Where a transfer or withdrawal request involves Securities that have been suspended from trading we may extend the period specified for transfer/withdrawal until trading resumes.
If following a transfer to another ISA manager we receive dividends, interest or any other amount on your behalf, we will send those sums to the new ISA manager unless the amount is less than £50, in which case we will send the amount directly to your Nominated Bank Account.
We do not accept transfers in from other ISA managers.