We have identified Polestar Automotive Holding UK PLC as an instrument that does not satisfy HMRC ISA eligibility criteria. Subsequently, investors who have purchased the stock through an ISA account would have to terminate their positions. You will be able to sell your share(s) at your own discretion until Wednesday 05/07/2023 14:00 GMT. At this point, if your position is still open, it will be closed on your behalf.
Does anyone know where to find more information on the reason why HMRC took that decision? Is this unusual or happen often?
Similar happened with NIO… We had to sell all our shares in the ISA and buy in the invest account… Then a few weeks later it was decided that we could hold in an ISA, so had to sell, pay the transaction costs on sale and repurchase… take a loss for nothing.
My advice… give it until a few days before deadline and see if powers-that-be change their mind
Good point - plus I don’t need to sell until July, and T212 are introducing FX fee free trading from July, so will wait until then to avoid the additional fees.
This is very poor, I don’t see why I should have to take the loss myself on the polestar position if it shouldn’t have been available to purchase in the first place.
I don’t have an issue with the position being at a loss. My issue is the fact that it was available to purchase on T212 via ISA when it should never have been able to and now I am forced to take a loss due to their mistake.
It’s your mistake as much as theirs. Tax affairs are not 212’s responsibility, they’re yours. It’s your account and you should be satisfying yourself that investments you make meet criteria set.
Appreciate you won’t like this, but that’s the rub.
If you are happy with the position you can open an identical position in the Invest account and close the ISA position. If you time is well you could try to buy at a slightly lower price and make a profit from moving it from the ISA to Invest accounts
See how you get on with the taxman by blaming others. Even an accountant sends your accounts and calculations back to you for sign off before submitting.
First of all it is a regulatory matter, not a tax matter. Tax is not a concern of mine since it is in my ISA account.
Secondly, T212 should be complying with regulations with respect to instruments being eligible to be traded in an ISA or not. If this instrument (Polestar) was never eligible to be held in an ISA then this is directly T212’s fault as it should never have been available to purchase in the first place. If the instrument was previously eligible to be traded in an ISA and no longer is due to HMRC changes then this isn’t T212’s fault as they are simply responding to a change in circumstances by HMRC.
Please don’t bother replying to me any further since you clearly have a very limited understanding of the matter.
Guess what’s not in your ISA - Polestar.
Guess what just become a tax matter - Polestar.
Polestar is not elligible to be held in an ISA so it doesn’t fall under ISA tax protection. Nothings changed, it’s just a complex instrument / complex corporate structure that’s evaded reasonable checks.
Long story short, you can whine about it all you like. It’s still as much your fault as it is 212.
This one is 50/50. I mean if I am looking at buying shares in a company, I would do the research and then check where I am best to purchase the size of holding I want. As a UK investor, in terms of a wrapper I would go ISA and then GIA. If the stock was not available in the ISA, and I thought it should, I would double check myself. If the stock was available in an ISA on a platform I wanted to trade, I would buy it on the assumption my broker had performed the review for me.
As such, the best course of action would be for 212 to close all positions, and reopen the same number of shares in a GIA. They have the shares on their book, so should be able to match buy/sell with minimal to no loss.
@Scrooge_McCodf I’m not sure about the tough comments. To be fair I don’t understand why a load of stocks have suddenly been deemed ineligible for inclusion in ISAs. It also isn’t clear whether or not the shares were previously eligible and this situation has resulted in a change in the rules and thus has not been caused in any way by the individual investor.
@Dougal1984 has posted a link but the Gov website confirms that the USA is a designated country and specifically states that the NYSE and NASDAQ are thus qualifying exchanges and ISA rules allow shares in any company listed on a recognised exchange to be held in an ISA. Thus it’s far from clear (to me bwdik) why the suddenly notification that some shares can’t be held in an ISA.
That said, as far as @R_16 is concerned the solution is simply to hold the shares in an Invest account and its easy to effectively move them over (sell them in the ISA and buy in the Invest).
I’m struggling to see the need for heated discussion or barbs
This is where people get confused. The shares we are talking about are listed in the US (its an ADS - essentially a wrapper / resell of the underlying), but the underlying security is not.
There are already a lot of stocks that are not available within an ISA wrapper that I know I cannot buy into, so there shouldn’t be any slipping through the net.
You would have thought that there was a pretty clear list of applicable companies. This on top of the fractional share thing Freetrade is going through (if that hits 212 - likely) would render the majority of my stocks invalid.
Please confirm if the following message from Trading212 is correct…?
We have identified BTCetc - ETC Group Physical Bitcoin as an instrument that no longer satisfies HMRC ISA eligibility criteria. Subsequently, investors who have purchased the stock through an ISA account would have to terminate their positions. You will be able to sell your share(s) at your own discretion until Wednesday 05/07/2023 14:00 GMT. At this point, if your position is still open, it will be closed on your behalf.
Not seen an equivalent message from the other ISA providers yet.
