How to pay US/UK tax after selling my US shares

andy_b

Hi

I have a stocks and shares isa with a couple of holdings in US shares. I enrolled in the W8BEN and renewed it when necessary. I've recently sold one of my holdings.

I'm fairly certain i will not need to pay UK tax on this income as it is in an ISA, but likely will owe the US 15% of the sale value.

Anyone able to confirm this and more importantly how to pay the tax I owe before i forget.

Thanks!

wmb194

andy_b said:

Hi

I have a stocks and shares isa with a couple of holdings in US shares. I enrolled in the W8BEN and renewed it when necessary. I've recently sold one of my holdings.

I'm fairly certain i will not need to pay UK tax on this income as it is in an ISA, but likely will owe the US 15% of the sale value.

Anyone able to confirm this and more importantly how to pay the tax I owe before i forget.

Thanks!

Completing the W8-BEN and stating you're resident in Britain means that where applicable you pay 15% dividend withholding tax rather than the US' usual 30%. 

Isas aren't exempt from US dividend withholding tax at the double taxation treaty rate of 15% - pensions/Sipps are - but you don't owe the US any capital gains tax if that's what you mean.

I'm assuming you're not a US citizen.