Hargreaves Lansdowne - foreign dividend withholding tax recovery

Jimbo53_2
Jimbo53_2 Posts: 2 Newbie
in Pensions, annuities & retirement planning
I have a Hargreaves Lansdown SIPP & hold a large value in dividend yielding Swiss stocks. Swiss tax authorities require Swiss companies to withhold 35% of dividends payable resulting in a significant loss of income. It is possible to recover this withholding – I do it with the help of an accountant in a share fund I have. HL already provide this service for US stocks but decline to get involved with Swiss withholding tax – the process is paper based & a little complicated.
Is anyone else in this situation? Has anyone found a workaround? Are there any other providers who do recover foreign withholding taxes on dividend receipts?

Comments

  • bostonerimus
    bostonerimus Posts: 5,617 Forumite
    First Anniversary Name Dropper First Post
    edited 22 August 2017 at 5:58PM
    The treaty puts the max dividend tax at 15%. If 35% has been withheld by the Swiss you should claim 20% back. Then you can use the 15% payable to Switzerland by treaty as a foreign tax credit on your UK taxes. I don't know anything about Swiss taxes, but other countries have forms where you can claim the treaty tax rate and get a refund.
    “So we beat on, boats against the current, borne back ceaselessly into the past.”
  • Jimbo53_2
    Jimbo53_2 Posts: 2 Newbie
    Thanks Bostonerimus - but the problem is that your individual SIPP is the tax payer & would be the claimant. As a consequence Hargreaves Lansdowne needs to put the claim in since it is effectively the trustee of the individual SIPP - & it won't act.
  • bostonerimus
    bostonerimus Posts: 5,617 Forumite
    First Anniversary Name Dropper First Post
    Jimbo53 wrote: »
    Thanks Bostonerimus - but the problem is that your individual SIPP is the tax payer & would be the claimant. As a consequence Hargreaves Lansdowne needs to put the claim in since it is effectively the trustee of the individual SIPP - & it won't act.

    Oops sorry, I missed the SIPP bit which is vital. The treaty rate for dividends held in a pension fund is 0%. As you say you need to get the pension administrator to sort this out.
    “So we beat on, boats against the current, borne back ceaselessly into the past.”
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