UK Trader Advice

First Time Investing 🐣
1

Hey all,

I’m a newbie trader from the UK. My question is, if I invest in US stocks, would I pay US tax?

I have heard different things from different people / sources. Some say I would, some say I wouldn’t, others suggest only on dividends.

If anyone can clear this up for me it would be greatly appreciated

Kind regards :slight_smile:

2

No but you do get charged a US withholding tax on all dividend payments (15% - 30% without a W8-BEN form but Freetrade do that for you). The charge is unavoidable.

When buying and selling shares etc. there are all sorts of little regulatory fees etc. but those are built into the purchase experience.

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3

Freetrade converts to pounds so you pay 0.45% FX fee, but then if it’s in your ISA, it’s tax free (except FX when you sell). Like hrochfor1 said, you’ll complete the form which takes care of everything.

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4

That’s for the reply! So if I were to invest in a company that pays dividends, would freetrade deducted the withholding tax on each payment given?

That for me would be perfect.

5

Yes. You don’t have to do anything.

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6

Thanks so much Adam! Am I right in thinking then that freetrade deduct any taxes at point of payment? No US tax return forms after need to be completed? Thanks :slight_smile:

7

Thanks Seb, haha that’s everything I needed to know :slight_smile:

Thanks all

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