ISA dividends tax? Swiss 35% Tax - RESOLVED

[Alexander-Matheson (Alex)]

Can anyone advise why Freetrade deducts 20% tax on dividends from stocks held in ISA? Not saying they are wrong just don’t get why a deduction is made

[Alexander-Matheson (Alex)]

Actually deduction in another was 35%

[scudulike (Stu)]

Which company? Could be they are US companies, which have Tax deducted even when in an ISA…

[Alexander-Matheson (Alex)]

Ferrexpro

[NeilB]

Are you 100% sure you haven’t made a mistake? FT don’t withhold anything other than the 15% that @scudulike mentioned on US stocks.

[Kraftskiva]

Swiss withholding tax is 35%

[Eden]

This is the reason

To add, you really should have known this (not having a go, just something to remember). It’s important to make sure you read and understand the business and business structure of the companies you’re buying shares in

[Jim_mcgrain (Jim)]

I remember a previous discussion on here regarding Ferrexpo / tax.

Ferrexpo FXPO - Stock Discussion

It’s the Swiss Withholding Tax. I’m told due to the ‘Double Tax Treaty’ between the UK and Switzerland it may be possible to reclaim 4/7th leaving a tax of 15%. Not entirely sure how to raise the claim but can try and find out. Worth the hassle if it’s a big amount. If this is in a SIPP then I’m told you’d need the SIPP administration to raise this which FT / lot of other brokers don’t support.