Can anyone explain how Capital Gain Tax work on shares and on dividents? Ive purchased shares got divs today 3 days late! But see for the 1st time ive paid 15% CGT yet in the tax year ive had a few hundreds in dividents at most and nowere near my personal tax allowance I sold the shares in question few days after they went ex divident as a loss so im even more baffled! I did however buy them again today as have dropped lower but my dividents should of been paid on the 28th anyway. Why have Freetrade now suddenly hit me with 15% CGT? Any help be much appreciated.
Some jurisdictions take a tax on dividends no matter what. So, e.g. B&M is based in Luxembourg and you pay 15% on dividends even inside a UK ISA. 30% tax withheld on US dividends similarly. It’s nothing to do with UK limits.
FT haven’t charged you CGT.
HMRC charge you CGT when you complete your Self Assessment if you made more than your CGT allowance.
It will be what Liz above says.
Half of the US 30% is reclaimed with the W-8BEN so you pay 15% on US dividends.
Another new account?
US tax you on dividends, then if you go over you div allowance UK tax man taxes you again, then when you sell UK tax man will Tax you with capital gains. unless its all in an ISA
As you were told on the diversified share thread you havent been charged capital gains tax.
This is not capital gains tax, as DEC is a US company with a UK listing income has a 15% withholding tax on dividends taken by the US not UK.