How will my international shares be taxed?
International shares, or income from them, may be subject to certain taxes levied by the tax authority in their country of origin, and these are outlined below. There may also be additional counterparty or exchange fees levied on such transactions.
US Shares
Income earned on US shares is subject to withholding tax of 30%; however, UK taxpayers can complete a form known as a “W-8Ben”[MT1] to automatically pay a reduced rate of 15%.
When you invest in US shares for the first time, we will post you the W-8Ben. You do not need to complete one before your first purchase of US shares, but once we send you this form, please return it promptly. You must complete a renewed W-8en every three years, which we will also send to you automatically.
Canadian Shares
If you are a UK resident, we will automatically arrange for you to pay withholding tax at the lower rate of 15% instead of the full rate of 25%.
European Shares
Financial Transaction Tax (FTT) applies to purchases (not sales) of shares on the French and Italian markets and is similar to Stamp Duty in the UK. This tax is levied as a percentage of the total value of your purchase and will be outlined on the contract note that you receive when the trade has completed.
Consolidated Tax Certificates (CTC)
We will automatically provide you with a CTC for your investment account, showing all income earned from for your UK and international shares, and any tax paid.