S&P is an American stock like any other individual stocks such as Meta or Apple. I saw someone said we don’t need to pay WHT and another says something else. Can someone please explain if we really need to pay any capital gain tax and WHT for US stock such as S&P 500 and individual American stocks in Stock ISA if we live in the UK? Is there any threshold? If we keep these American shares and not intending to sell do we still need to pay tax?
Have a look at one of your US dividends, what the gross dividend rate was, and what you received.
Sorry I am quite new to this. For example I ordered 50ÂŁ and received the same amount in my account for Vanguard S&P500(Acc). Is this what you mean?
I read somewhere we need to fill w8-BEN form if we want to buy US shares even in ISA account. Is that true?How does this work in trading 212?
Edit: I found out W8-BEN form can be submitted automatically by the 212 when I trade any US shares so I don’t need to worry about completing the form myself.
No when you sign up you fill in your details and the w8 tax form is done. If it needs renewed then you get an in app notification. Tax treaty rate is then applied being a UK? Investor of 15%.
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Assume you mean VUAG, which is LSE traded and Ireland domiciled. As this is accumulated, the dividends are reinvested by fund management and you don’t see any dividends anyway. For likes VUSA the withholding taxes on dividends are managed by fund as well, so you don’t need to do anything. No CGT for ISA held funds either
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Thanks for your reply. How about other stocks like Meta,Apple etc? Are they the same? Is the tax automatically calculated and deducted by the trading 212? Don’t I need to declare any gains to HMRC?
CGT is not deducted and for ISA you are not liable for it.
Dividend WHT on foreign shares “should” be deducted at source, so I would expect dividends on US shares will be reduced by 15% when paid to your t212 account if w8-ben form is valid or 30% if not
You should be able to claim WHT tax back from IRS; not sure what the process is for US, but I had done it from German tax authorities for German shares)
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Im from Italy and i’m currently filling out my W8 BEN. Now, T212 has already filled lot’s of boxes in the W8 for me , but I still have two doubts: is the automatically filled out form already correct? can I send it like this? and also, in the box where it is written: "Special rates and conditions (if applicable—see instructions): The beneficial owner is claiming the provisions of Article and paragraph
of the treaty identified on line 9 above to claim a % rate of withholding on (specify type of income):
. "Should I enter something or should I leave it blank like t212 ?