# US stocks and ISA, UK tax **URL:** \ **Category:** 🤝 Help\ **Created:** [June 27, 2021, 11:59am UTC](https://community.trading212.com/t/us-stocks-and-isa-uk-tax/49194 "2021-06-27T11:59:56Z")\ **Posts on this page:** 7\ **Page:** 1
**Author:** ![Tayyib](https://avatars.discourse-cdn.com/v4/letter/t/7ab992/32.png) [@Tayyib](https://community.trading212.com/u/Tayyib)\ **Post date:** [June 27, 2021, 11:59am UTC](https://community.trading212.com/t/us-stocks-and-isa-uk-tax/49194/1 "2021-06-27T11:59:56Z")
Hi, if someone can help me on this, I was told with a stocks and shares ISA if I invest in a UK stock I wont need to pay any tax on the profits, I was then told investing in a US stock via an ISA is still subject to tax. is this correct? From my understanding a stocks ISA only benefits you when it comes to profits made on a UK stock? Also investing in US stock via a ISA or standard invest account is the same in terms of paying tax? Thank you for any clarification on this. ---
**Author:** ![Alien](https://avatars.discourse-cdn.com/v4/letter/a/57b2e6/32.png) [@Alien](https://community.trading212.com/u/Alien)\ **Post date:** [June 27, 2021, 12:43pm UTC](https://community.trading212.com/t/us-stocks-and-isa-uk-tax/49194/2 "2021-06-27T12:43:56Z")
You do not pay any UK tax on profits you make in an ISA account, either from selling at a profit (capital gains) or received dividends. That applies to any shares you hold; UK, USA, Europe or other. In fact, you do not need to report any proceeds from an ISA account to the HMRC at all. However, for USA held stocks, the US government applies a withholding tax on dividends, taken from the source, so you receive your dividends minus 15% and there is no way around this. This also applies to some European stocks. ---
**Author:** ![Tayyib](https://avatars.discourse-cdn.com/v4/letter/t/7ab992/32.png) [@Tayyib](https://community.trading212.com/u/Tayyib)\ **Post date:** [June 27, 2021, 12:56pm UTC](https://community.trading212.com/t/us-stocks-and-isa-uk-tax/49194/3 "2021-06-27T12:56:52Z")
Thank you for the quick response and clarification. Just wanted to confirm, I have invested in a few US stocks using my standard investing account? What do I do when a profit is made or dividend is paid. ---
**Author:** ![Alien](https://avatars.discourse-cdn.com/v4/letter/a/57b2e6/32.png) [@Alien](https://community.trading212.com/u/Alien)\ **Post date:** [June 27, 2021, 1:15pm UTC](https://community.trading212.com/t/us-stocks-and-isa-uk-tax/49194/4 "2021-06-27T13:15:57Z")
Profits from the Investing account are subject to CGT, and dividends to dividends tax, but only if your profit/dividends are above the exemption threshhold. The UK tax information thread at the top of the Help section has detailed information. ---
**Author:** ![Richard.W](https://avatars.discourse-cdn.com/v4/letter/r/b782af/32.png) [@Richard.W](https://community.trading212.com/u/Richard.W)\ **Post date:** [June 27, 2021, 1:29pm UTC](https://community.trading212.com/t/us-stocks-and-isa-uk-tax/49194/5 "2021-06-27T13:29:55Z")
You will find many answers here. Read all the FAQs and you may learn a lot. > [@FAQ for Tax in the United Kingdom](https://community.trading212.com/t/faq-for-tax-in-the-united-kingdom/48024): > > FAQ for Tax in the United Kingdom The UK tax year has just ended, 5 April 2023. So this is a good time to talk about taxes on investments as they affect those of us using Trading 212. Some information about ISAs is also here. Taxes on dividends and capital gains in the year 6 April 2022 - 5 April 2023 need to be computed and paid by 31 January 2024. There is already a lot of information about UK tax in our community forum. However, this short FAQ may help to bring a lot of information into one… ---
**Author:** ![MaxZorin](https://dub1.discourse-cdn.com/flex013/user_avatar/community.trading212.com/maxzorin/32/16530_2.png) [@MaxZorin](https://community.trading212.com/u/MaxZorin)\ **Post date:** [June 27, 2021, 5:52pm UTC](https://community.trading212.com/t/us-stocks-and-isa-uk-tax/49194/6 "2021-06-27T17:52:45Z")
> You only have to pay **Capital Gains Tax** on your overall **gains** above your **tax** - **free allowance** (called the Annual **Exempt** Amount). The **Capital Gains tax** - **free allowance** is: £12,300. From the [gov.uk](http://gov.uk) website. **Capital gains** are taxed **differently** from **income** , and you have a **separate personal allowance** for **capital gains** (in addition to your **personal allowance** for **income** ). ---
**Author:** ![Hbomb](https://dub1.discourse-cdn.com/flex013/user_avatar/community.trading212.com/hbomb/32/8551_2.png) [@Hbomb](https://community.trading212.com/u/Hbomb)\ **Post date:** [June 28, 2021, 9:02am UTC](https://community.trading212.com/t/us-stocks-and-isa-uk-tax/49194/7 "2021-06-28T09:02:14Z")
A key factor if ever deciding between possible return on two assets is if one is ISA and one is not eligible for ISA then factor the tax burdens into your possible returns, sometimes certain stocks then dont make as much sense. Also when deciding dividend yield calculations etc ned to factor in a UK stock 3% is ‘worth’ a US 3.5%.