Can we claim withholding tax (15%) of US stock in my UK ISA account

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1

Hi,
I have received dividends from US Stocks (SLG, TFC) after a cut of 15% withholding tax, Can we claim withholding tax (15%) of US stock into my UK ISA account or as a check?

If so whats the procedure? Can anyone answer please.

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2

Short answer, it’s a tax at source from the US government so no.

3

Thanks, Rob, Appreciate it.

4

What is the longer answer? Taxed at source is true of normal US dividend dispersals anyway but you can then claim these back as long as you paid HMRC dividend tax.

I currently make enough more than £500 that I can claim back the 15% withholding tax that the IRS receives from HMRC when I received US dividends within my general investment account. This Reclaim withholding tax on foreign dividends in an ISA or SIPP – The International Investor seems to confirm you can reclaim this back.

Oddly, although the .csv download appears to have the details needed, but the figures seem wrong. The withheld amount is closer to 20%

Name No. of shares Price / share Currency (Price / share) Exchange rate Total Currency (Total) Withholding tax Currency (Withholding tax)
Bank of Montreal 1.948006 0.98 USD Not available 1.44 GBP 0.34 USD

£1.44 is about right for the exchange rate of the day against 1.94 x $.98
15% of £1.44 is £0.216 or $0.28 not $0.34

The same is true throughout the csv.

5

You have to pay the reduced 15%(from 30%) WHT on US stocks afaik. Its the W8Ben form that automatically reduces that for you.

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Yes you pay it but you can claim it back in your tax return against other dividend tax.

7

Not for an ISA and some more words.

Extract from your link re ISA

The standard WHT on US dividends is 30%. This is reduced to 15% under the UK-US DTA, which is the rate that will apply whether you hold US stocks outside or inside an ISA. But if you hold them in a SIPP and your SIPP adminstrator is thorough enough, you can get them paid gross of all tax.

@Richard.W is much more versed in this than I and can probably confirm as another investor to another investor either way.

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FWIW Bank of Montreal is not a US stock, and it’s taxed at source in Canada where WH tax rates are 25%

I have never checked if there is a double taxing agreement between CA & UK.

IF there is an agreement and you get “double taxed” you can claim the WH tax from the tax authority in source country (In this case Canada) since you paid no tax to HMRC in UK inside your ISA there is nothing to claim back in UK.

HMRC does not pay tax to IRS. IRS taxes you at source. That page you linked half-arses this information. For US shares, if you have filled/submitted a W8BEN you already get taxed at a lower rate of 15% instead of the 30%. IF you have not filled W8BEN and you got taxed the full 30% then you can get your 15% back (out of the 30% you paid)

but like I said first, none of this applies to you because Bank of Montreal is listed in Canada.

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