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. There may also be additional counterparty or exchange fees levied on such transactions. We will automatically provide you with a Consolidated Tax Certificate for your investment account(s), showing all income earned from and any tax paid for your UK and international shares.
US Shares
Income earned on US shares is subject to withholding tax of 30%. If we hold a valid W-8Ben form in place for you, you will pay a reduced rate of 15%.
Once you invest in US shares for the first time, we will post you a 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 fresh one 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 receive 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 certain European markets including France, 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 in confirmation of the trade.