What are the tax implications of owning fractional shares?

Written by Eleana Ntagia

Updated: 2023-10-02 14:41:21

As per the government's website you may have to pay Capital Gains Tax if you make a profit (‘gain’) when you sell (or ‘dispose of’) shares or other investments. The amount of capital gains tax you pay will depend on your income and the amount of profit.

Similarly, if you receive dividends from fractional shares, you may have to pay income tax on those dividends. The amount of income tax you pay will depend on your income and the amount of the dividend.

XTB can provide reports on what you have invested in to help with your self-assessment submission to HMRC.

Please visit or contact HM Revenue & Customs (HMRC) to ensure you have the most accurate and up-to-date information.

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