If a stock you own has a corporate action like a spin-off, merger and acquisition or right issues, the company may issue new financial instruments to you as part of the corporate action. The instruments can be Warrants, Contingent Value Rights (CVRs) or temporary lines of stock known as Corpact Units.
However, HMRC’s ISA eligibility rules don’t allow you to hold these types of instruments in ISAs. This means there’ll be occasions where your stock’s ISA eligible but the new corporate action instrument’s not.
How can I receive these corporate action instruments?
However, HMRC’s ISA eligibility rules don’t allow you to hold these types of instruments in ISAs. This means there’ll be occasions where your stock’s ISA eligible but the new corporate action instrument’s not.
How can I receive these corporate action instruments?
If the instruments aren’t ISA eligible, you’ll receive them in your Invest account.
What if I don't have an Invest account?
If you do not have an Invest account at the time of the initial distribution, we’ll put it on hold and you’ll be asked to create one.
We monitor all newly created Invest accounts and process allocations on a weekly basis to ensure you receive your entitlement.
How will I be notified?
You’ll receive a corporate action notification containing the details of the event. If you only hold an ISA account, you’ll be notified that the new distribution isn’t ISA eligible and you’ll be asked to create an Invest account. We’ll guide you through this process.