Investing in S&P500 UK ISA Tax Implications

📊 Investing
1

Hi, I am new to stocks and shares and unsure on the tax implications of trading US stocks.

I want to invest in the S&P 500 accumulating etf which pays the dividends back into the investment rather than the shareholder

Looking online I found the following statement

*"UK residents aren’t subject to paying tax on US shares from the UK, but they do have to pay a tax on any dividends or income received from those US stocks. *

This tax is called a withholding tax (WHT) and it’s 15%. Any dividends or income received from US stocks must receive this WHT 15% tax. "

I’m aware once i sell i will pay capital gains but will i need to also pay a 15% withholding tax also?

Does selling shares constitute as being income?

2

Not in an accumulating ETF you wont. This tax is automatically collected before hitting your account anyway.

Not in an ISA, so best to use this first.

No, it’s a capital gain or loss.

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3

If you invest in an ISA there is no tax to pay except stamp duty for UK stocks and witholding taxes on non UK stocks.

You do not need to pay capital gains tax or dividend taxes to HMRC in the UK.

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