1. About these ISA Terms
1.1
If you have a Freetrade ISA, these ISA Terms will form part of the legally binding agreement between you and us in respect of your Freetrade ISA. By opening a Freetrade ISA, you are appointing Freetrade to be the ISA manager of your Freetrade ISA in accordance with the ISA Regulations.
1.2
These ISA Terms apply to your Freetrade ISA in addition to the general Terms and Conditions. If these ISA Terms say anything that is inconsistent with the general Terms and Conditions, the ISA Terms will apply.
1.3
Some of the words used in these ISA Terms are capitalised. These have a special meaning which is set out in
section 10 below or in
Part E of the general Terms and Conditions.
1.4
These ISA Terms will always be available on our website, and you'll be able to download or print them.
1.5
If there's anything about your agreement with us that you're unsure about, you can email us at
hello@freetrade.io.
2. About your Freetrade ISA
2.1
The Freetrade ISA is a stocks and shares ISA which we, Freetrade, operate as ISA manager in accordance with the ISA Regulations.
2.2
As long as your Freetrade ISA is valid under the ISA Regulations, it will be exempt from UK capital gains and other taxes that would otherwise be payable on profits from price increases and income derived from Investments in your Freetrade ISA.
2.3
We can’t guarantee that this tax treatment will remain the same, as this is dependent on the tax rules and law. If this tax treatment does change, we’ll notify you as soon as reasonably practicable to explain any impact on your Freetrade ISA.
3. Applying for a Freetrade ISA
3.1
In addition to meeting the eligibility requirements that apply to all Freetrade Accounts and are set out in
section 7.2 of the general Terms and Conditions, in order to open a Freetrade ISA you must:
- have a Freetrade GIA with us;
- have a Plan which entitles you to have a Freetrade ISA; and
- in respect of any ISA opened before 6 April 2024, not have another Stocks and Shares ISA in respect of any tax year during which you hold your Freetrade ISA.
3.2
We will only open your Freetrade ISA once we have received:
- a valid application for a Freetrade ISA from you and your first Subscription; or
- have a Plan which entitles you to have a Freetrade ISA; and
- where you are making an ISA Transfer from another ISA, a valid transfer form and receipt of the relevant cash and/or Investments from your previous ISA manager.
3.3
Unless you tell us otherwise or you fail to make a Subscription in each tax year, we will renew your Freetrade ISA at the beginning of each subsequent tax year.
5. Investments within your Freetrade ISA
5.1
If any Investments in your Freetrade ISA are evidenced by share certificates or other documents evidencing title, these will be held by us as your ISA Manager or as we may direct.
5.2
If you ask us to, we will arrange for you to:
- receive a copy of the annual report and accounts issued by each company or relevant entity (for which we can charge a reasonable fee);
- except to the extent that your Freetrade ISA holds Fractionals, be able to attend any meetings;
- to vote (except that, to the extent that your Freetrade ISA holds Fractionals, we will use our reasonable endeavours to ensure that your proportional share of the vote can be taken into account); and
- to receive any information issued to shareholders in addition to annual reports and accounts;
in respect of Investments which are held in your Freetrade ISA.
5.3
Not all of the Investments that are available to buy or hold using our Services are eligible to be held within your Freetrade ISA under the ISA Regulations. We will notify you which Investments are eligible from time to time.
5.4
If we receive or hold Investments in respect of a Freetrade ISA that are not eligible to be held within a Freetrade ISA under the ISA Regulations, we may sell those Investments in accordance with section 28 of the general
Terms and Conditions or transfer them to your Freetrade GIA.
6. How we will manage your Freetrade ISA
6.1
We will act as ISA manager of your Freetrade ISA in accordance with the ISA Regulations.
6.2
We may delegate any of our functions or responsibilities as ISA manager to any other third party, provided that we are satisfied that this party is competent to carry out those functions or responsibilities.
6.3
You authorise us to make disclosures to HMRC in relation to your Freetrade ISA as may be required in order for us to comply with the ISA Regulations.
6.4
Where we believe that your Freetrade ISA is invalid, we'll notify you of this and take any steps as required or permitted under the ISA Regulations or by HMRC. If your Freetrade ISA is invalid, there is a risk that it may not be exempt from capital gains tax or income tax, as set out at
section 2.2 above.
6.5
It may be possible to repair an invalid ISA under the ISA Regulations. If we do this, we may charge you a fee to cover any reasonable costs we incur in repairing your Freetrade ISA.
6.6
We do not accept additional permitted Subscriptions on your death.
7. Adding cash or investments to your Freetrade ISA
7.1
You can add cash or Investments into your Freetrade ISA as set out in section 11 of the general Terms and Conditions.
7.2
Unless it is made as an ISA Transfer into your Freetrade ISA, adding cash or Investments to your Freetrade ISA will be a Subscription under the ISA Regulations.
7.3
In each tax year you can only make Subscriptions in accordance with the applicable Subscription limit for that tax year. The current Subscription limit is set out
here or on the
HMRC website.
8. ISA Transfers
8.1
In accordance with the general Terms and Conditions, we can accept and make ISA Transfers of cash and/or Investments, provided that we are satisfied this is in accordance with the ISA Regulations.
8.2
If we receive a request from you or a new ISA Manager to make or accept an ISA Transfer and we agree to that request, then we will:
- initiate an ISA Transfer into your Freetrade ISA within 3 business days; or
- process an ISA Transfer out of your Freetrade ISA within 30 days, subject to sections 8.3 and 8.4.
8.3
If you have Investments which are funds (such as an ETF or a mutual fund) within your ISA and those Investments have been suspended from dealing, then we can delay an ISA Transfer or associated sale of those Investments until 7 days after that suspension has ended.
8.4
We permit partial ISA Transfers out of your Freetrade ISA, but if you want to make an ISA Transfer of Subscriptions that you have made in the current tax year, we will need to make an ISA Transfer out of all of your current tax year’s Subscriptions.
8.5
If you have a Treasury in your ISA that needs to be sold before it matures in order to enable an ISA Transfer out to happen within 30 days in accordance with section 8.2.2, we will facilitate the sale of that Treasury at the prevailing market price and may charge you a reasonable amount for doing so.
9. Withdrawing amounts from your Freetrade ISA
9.1
You can take cash from your Freetrade ISA in accordance with section 12 of our general
Terms and Conditions. Unless you are making an ISA Transfer to another ISA manager, this will be a “withdrawal” under the ISA Regulations.
9.2
We will process any withdrawal from your Freetrade ISA within 30 days of receiving your request, subject to section 9.3 below.
9.3
If you have Investments which are funds (such as an ETF or a mutual fund) within your ISA and those Investments have been suspended from dealing, then we can delay any withdrawal or associated sale of those Investments until 7 days after that suspension has ended.
9.4
If you have a Treasury in your ISA that needs to be sold before it matures in order to enable an ISA withdrawal to happen within 30 days in accordance with section 9.2, we will facilitate the sale of that Treasury at the prevailing market price and may charge you a reasonable amount for doing so.
9.A Flexi ISA
Your Freetrade ISA is a flexible ISA. This means that you can replace amounts that you have withdrawn without those replacements counting towards your annual Subscription limit, provided that the replacement is made in the same tax year as the withdrawal.
10. Definitions
“Freetrade ISA” means a Stocks and Shares ISA provided by Freetrade as the ISA manager.
“Stocks and Shares ISA” means a “stocks and shares account” as defined by the ISA Regulations.
“ISA” means an individual savings account in accordance with the ISA Regulations.
“ISA Regulations” means the Individual Savings Account Regulations 1998 (SI 1998/1870) as amended from time to time.
“ISA Transfer” means either (1) a transfer of cash and/or Investments from another ISA into your Freetade ISA or (2) a transfer of cash and/or Investments from your Freetrade ISA to another ISA manager, in each case in accordance with the ISA Regulations.
“Subscription” means an amount (whether in cash or investments) that you pay or transfer into your Freetrade ISA, other than an ISA Transfer.
