Can I invest in US shares tax-free through a stocks and shares ISA?
in ISAs & tax-free savings
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I have a stocks and shares ISA and have previously considered investing in US shares.
Up until now, I've avoided doing so because I opted for simplicity and decided against completing a W-8BEN form.
However, I'd like to look into this further now.
Can US shares be bought through a stocks and shares ISA and, if so, would I be subject to any taxes further down the line or would the ISA ensure it remained completely tax-free?
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No, it would be free of UK taxes but any taxes imposed in the US would still apply. You would still need to complete a W-8BEN form and you would have to pay a withholding tax on share dividends. The ISA would protect your shares from any Capital Gains Tax liability.
Yes, that's correct provided you have completed the W-8BEN so your rate of withholding tax is 15%.
No, that's not the way it works. You don't have to withdraw the full 25% tax-free sum all at once but it's a one-off.
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