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Advice on US Stocks/Shares and Withholding Tax
gmodertom
Posts: 1 Newbie
Hi all,
I am wanting to open a stocks and shares isa and have been doing some research for a few months. I just can't find a solid answer to a question I have.
If I am wanting to trade US stocks I note I have to complete a W-8BEN form and there is a 15% withholding tax.
My question is does that withholding tax count for all US based companies offering stocks/shares or only if I trade in the US markets. For example Apple is on the London Stock Exchange but is a US based company, therefore by trading Apple stocks through the LSE do I pay the 15% and have to complete the W-8BEN form?
Kind regards
Tom
I am wanting to open a stocks and shares isa and have been doing some research for a few months. I just can't find a solid answer to a question I have.
If I am wanting to trade US stocks I note I have to complete a W-8BEN form and there is a 15% withholding tax.
My question is does that withholding tax count for all US based companies offering stocks/shares or only if I trade in the US markets. For example Apple is on the London Stock Exchange but is a US based company, therefore by trading Apple stocks through the LSE do I pay the 15% and have to complete the W-8BEN form?
Kind regards
Tom
0
Comments
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Ultimately you own shares in a US company. Tax is therefore still payable.0
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Note that you cannot hold foreign-listed stock (including US-listed stock) within an ISA.
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As long as they are on an HMRC 'recognised exchange' ie. all of the main ones and a few more besides, yes you can.Voyager2002 said:Note that you cannot hold foreign-listed stock (including US-listed stock) within an ISA.1 -
An example of a London listed US company is DEC. Witholding tax is payable on DEC dividends in an ISA, but not in a SIPP. Hence I only hold DEC in a SIPP.“Like a bunch of cod fishermen after all the cod’s been overfished, they don’t catch a lot of cod, but they keep on fishing in the same waters. That’s what’s happened to all these value investors. Maybe they should move to where the fish are.” Charlie Munger, vice chairman, Berkshire Hathaway0
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