As a millennial who only managed to dip my toes into the world of investing thanks to the game-changing introduction of fractional shares, I can’t help but feel frustrated at the thought of HMRC potentially pulling the rug out from under us. The idea of no longer being able to hold fractional shares in an ISA is not only a blow to our generation but a setback to the very principles of financial inclusivity and opportunity.
Let me paint you a picture of why this change would be so devastating for young investors like myself. Take, for instance, the iconic example of Amazon. This corporate behemoth, a titan in the e-commerce world, reportedly paid a staggering zero pounds in corporation tax despite raking in a colossal £204 million in profit in the UK. Yet, it’s us, the little people, who seem to be in the crosshairs of HMRC’s tax policies. It’s as if David is always battling Goliath, and David isn’t winning.
So, why does the possibility of losing fractional shares in ISAs irk me so much? For one, it makes investing significantly more challenging. Imagine trying to save up enough money to buy a single share of a company like Amazon, which pre-split in 2022 would have cost over $2,000 per share. For most of us millennials, that’s a daunting task. Investing becomes a privilege only available to those with deep pockets, leaving the rest of us on the sidelines, excluded from opportunities for growth.
Fractional shares were our saviour, our ticket into the world of investing. They allowed us to purchase a tiny piece of the pie, to learn and grow, and to create invaluable habits of saving and financial responsibility. Buying just a fraction of Amazon at a time made us feel like we were part of the game like we had a stake in the future.
But now, the prospect of this option being stripped away is enough to ignite frustration, especially for those of us who’ve embraced platforms like Freetrade to build our financial futures. It’s a step backwards when it feels like we’re already at a disadvantage. While Amazon dances around tax obligations, we, the ordinary investors, might be left in the lurch. And this isn’t just about Amazon; it’s about the countless other companies that exploit tax loopholes while we diligently pay our dues.
By restricting fractional shares in ISAs, we risk leaving the younger generation high and dry. Our potential for financial growth and stability is jeopardised, not by our own inability to save, but by a system that seems more concerned with taxing the little guys rather than pursuing the giants who’ve mastered the art of avoidance.
It’s essential to recognise that young investors, like us, have embraced the spirit of saving and investing. We’re learning the ropes and developing sound financial habits, thanks in no small part to the accessibility of fractional shares and platforms like Freetrade. If this option is taken away, the risk is that many of us might become disillusioned, disillusionment leading to apathy, apathy hindering our ability to secure our financial future.
In the face of such an uncertain financial landscape, it’s crucial that HMRC doesn’t take this regressive step. We need a system that promotes inclusivity, encourages saving, and doesn’t burden us with the weight of a broken tax system. It’s time for HMRC to reconsider their approach, to go after the corporate giants who seem to escape their grasp, rather than taking away the tools that are helping us build a more secure financial future.
As a millennial who’s fought to save and invest, I implore HMRC to think twice before eliminating fractional shares from ISAs. Our financial future is at stake, and it’s not a risk we can afford to take. We deserve a fair playing field, a chance to learn and grow, and the ability to secure our own financial well-being. Let’s not make it even more challenging for the generation that’s already facing an uphill battle.
What can you do about it? Right now the best thing you can do is to lobby the Treasury. Feel free to use the statement I submitted:
Removal of Fractional Shares from ISAs
We, the undersigned, represent a generation of young investors who have embraced fractional shares through platforms like Freetrade. We urgently implore HMRC to reconsider their stance on fractional shares within ISAs, as the proposed change jeopardises financial inclusivity for millennials.
In a tax landscape where corporate giants like Amazon often avoid significant corporation tax payments, it is deeply frustrating that HMRC seemingly targets individual investors who rely on platforms like Freetrade. The restriction of fractional shares within ISAs amplifies our financial challenges. Accumulating enough funds to purchase whole shares in companies, often beyond our financial reach, becomes an insurmountable task.
Fractional shares are our gateway to investing and financial responsibility. They empower us to gradually invest in companies like Amazon, nurturing financial growth and knowledge.
The proposed change places an entire generation at risk. The potential for financial stability, especially with accessible platforms like Freetrade, is in jeopardy. This policy not only endangers our financial futures but also risks disillusioning us, hampering our commitment to financial security.
We implore HMRC to shift their focus toward holding corporate giants accountable rather than stripping us of crucial tools for securing our financial future. Our generation deserves a fair chance to learn, grow, and achieve financial security. This change obstructs our progress and widens the gap between investors. HMRC, for our financial well-being, please preserve fractional shares within ISAs.
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