These are old ISA terms. See the current ISA terms here.
VERSION 2.2
1. Defined terms
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;
2. Status of this Appendix
The terms in this Appendix only apply to those investors who wish to apply for a Freetrade ISA and hold cash or 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 set 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.
3. ISA Fees and Costs
The fees that we charge for the provision of the Services, as well as the manner in which we charge those fees, is described in a separate fees section on our mobile application or our website, which can be found here. The amount of our fees, as well as the nature of our fees, may change from time to time in accordance with our Terms & Conditions.
The fees and costs described in ‘Our Fees and Costs’ in our Terms & Conditions set out that the monthly subscription fee (the “Subscription Fee”) is payable by you to Freetrade Limited for the Standard and Plus subscription plans. The Subscription Fee covers, among other things, the provision of the Freetrade ISA. We will periodically charge the Subscription Fee to your payment card, and you hereby irrevocably authorise us to do so. You are entitled to close your Freetrade ISA, but you will not be entitled to a refund of any Subscription Fee(s) already paid.
You are entitled to cancel your Freetrade ISA by using the closure option in our mobile app and then contacting our Customer Service team, within 30 days of opening your Freetrade ISA. Should you wish to cancel your Freetrade ISA, any investments held in your Freetrade ISA will need to be sold down. Where investments are sold, you may suffer a loss. We are not responsible for any Loss that arises. If you cancel your ISA within the 30-day cancellation period you will be treated as not having subscribed to a Freetrade ISA.
In the event that we are unable to charge any Subscription Fees that you owe to us, you hereby irrevocably authorise us to deduct the owed amount from your Available Funds in your Freetrade ISA or from your General Investment Account. If the amount of your Available Funds is insufficient to cover any owed Subscription Fees, we reserve the right to sell your securities, in accordance with the section ‘Ability to Sell Your Securities to Recover Our Fees’ in our Terms & Conditions. We also reserve the right to terminate your Freetrade Account, including your Freetrade ISA, in the event of unpaid Subscription Fees, in accordance with the section ‘Termination - By Us’ in our Terms & Conditions. You should be aware that these actions may result in you losing the tax benefits on the extracted amounts or the whole amount held in the Freetrade ISA.
4. Applying for the Freetrade ISA
We do not accept applications in writing or by phone – you can only apply for a Freetrade ISA via our mobile application (Apple Store – Google Play Store).
5. Your eligibility to apply for a Freetrade ISA
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:
- You are applying to subscribe to a Stocks & Shares ISA for the tax year 2023/24 and each subsequent tax year until further notice;
- All subscriptions made, and to be made, to your Freetrade ISA belong to you;
- You are 18 years of age or over;
- You have not subscribed/made payments, and will not subscribe/make payments more than the overall subscription/payment limit in total to a cash ISA, a Stocks and Shares ISA, an innovative finance ISA, and a Lifetime ISA in the same tax year. You have not subscribed, and will not subscribe, to another Stocks and Shares ISA in any tax year that you subscribe to the Freetrade ISA;
- You are resident in the United Kingdom for tax purposes or, if not so resident, either perform duties which, by virtue of Section 28 of Income Tax (Earnings & Pensions) Act 2003 (Crown employees serving overseas), are treated as being performed in the United Kingdom, or are married to, or in a civil partnership with a person who performs such duties;
- You will inform Freetrade Limited if you cease to be so resident or to perform such duties or be married to, or in a civil partnership with, a person who performs such duties;
- You agree to the terms in this Appendix;
- You authorise Freetrade Limited to hold your cash subscription/payment, ISA investments, dividends and any other rights or proceeds in respect of the those investments and any other cash and to make on your behalf any claims to relief from tax in respect of ISA investments; and
- This application is made and information provided to the best of your knowledge and belief.
6. Tax Status of the Freetrade ISA
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.
7. Securities held within your Freetrade ISA
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:
- we will arrange for you to receive a copy of the annual report and accounts issued by every company or other concern in respect of Securities which are held directly in your Freetrade ISA (we can charge a reasonable fee for this); and
- we will arrange for you to be able to attend any meetings to vote in relation to your holdings of Securities within the Freetrade ISA and receive any information issued to shareholders in addition to annual reports and accounts.
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.
8. Transfers and withdrawals
Transfers in
Upon receiving a valid instruction from you to transfer an existing ISA you hold with another ISA manager to Freetrade we will contact your ISA manager within 3 business days to initiate the transfer. We will request your Securities in - specie from your existing provider. Any Securities held in your existing ISA we are unable to transfer in specie can either be sold and transferred as cash or left with your current ISA manager.
Transfers out
Upon receiving a valid instruction from another ISA manager we will transfer to another ISA manager within 30 calendar days. To do this, where we are able to, we will transfer your Securities in specie to the new ISA manager in accordance with section 34.2 of the Terms & Conditions. We will make a charge for transfers out of US Securities as described here.
Upon receiving a valid Instruction from you to withdraw funds from your Freetrade ISA, we will execute that Instruction within 30 calendar 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 (GBP), in which case we will send the amount directly to your Nominated Bank Account.
ISA Transfer FAQs
What do I need to do?
Download this form and complete each section. Then save the form as a PDF, and email it to us at transferapps@freetrade.io.
Once you've done that, you can open your Freetrade ISA via the app. Don't worry if you have contributed to another ISA in the current tax year, just make sure not to add to your Freetrade ISA until the transfer completes - see the next section for details on that.
Due to the current climate around COVID-19 and current high demand for transfers, the transfer process may be slightly delayed.
What will happen next?
We'll let you know when we receive your form. This will be within 3 business days. We’ll then contact your existing provider to arrange the ISA transfer, and we'll check if they'll accept the form electronically. Although Freetrade does accept electronic forms, some brokers may require a wet signature, so we can't guarantee the process can be done fully electronically. We'll do our best.
The transfer process can take 4 to 6 weeks. There’s no need to contact us during this process. We’ll let you know when it’s complete.
What can I transfer?
✅ You can transfer:
- A stocks and shares ISA
- A cash ISA
- An innovative finance ISA
❌ You can’t transfer:
- A junior ISA
- A lifetime ISA
Can I transfer my existing stocks, or do I have to sell them and transfer cash?
If the stocks in your existing ISA are in our universe and are available in an ISA, you can transfer them without selling.
If not, you can either sell them and transfer as cash, or leave them with your current provider, subject to ISA rules. Please note, we are able to accept stock via the UK (CREST) route only, restrictions on transfers may apply if your current provider hold assets on the domestic market.'
Is there a fee?
There is no fee to transfer in. There is a fee to make an in specie transfer out of US securities, which you can see here.
How much does the Freetrade ISA cost?
Our stocks and shares ISA account is included as part of our Standard and Plus subscriptions. Check out our full pricing here.
How about a transfer out?
We offer both stock and cash transfers, and there is no fee for closing your Freetrade ISA, although we do charge for in-specie transfers of US securities. You can contact your new ISA provider and let them know that we accept electronic forms, and they can send your form to: transfers@freetrade.io.
We are only currently operationally set up to transfer out UK and US holdings. If you wish to transfer out your full Freetrade ISA, any non-UK/US stocks you own may need to be sold. We would always reach out to you in these circumstances and would never sell your holdings without your instructions. In specie transfers of US securities are subject to a fee, which is described here.
General Investment Account
