US withholding tax

I’ve just received dividends on 2 US stocks - and suffered withholding tax.
Does Freetrade have a facility for registration of the US tax forms so that tax isn’t charged for those who are UK domiciled?

Colin

I believe the W-8 BEN form you signed when you set up on Freetrade gives you the best possible withholding tax rate under the UK:US treaty. So it could be worse I think, but can’t get any better!

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If you are buying American stocks for their dividends you need to factor in the 15% tax from your returns. Also stocks like diversied energy which is listed in the U.K. but dividends paid in dollars.

From what I understand if you don’t fill in your W8-BEN, freetrade won’t allow you to buy US stocks at all. If you do fill it in you get 15% witholdong tax on US stocks.

It’s 30% if a form isn’t filled in.

So yea you still lose 15% but it’s a million percent better then 30%.

If that concerns you it might be better to stick to UK stocks and ETFs or limit the number of US stock you buy and have them as a smaller percentage of your portfolio.

Samantha

That’s very helpful; thank you. Colin

*Def not a million per cent :wink:

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If this is about SIPP account, then yes, theoretically dividend withholding should be at 0%. And no, Freetrade is not providing it yet, and I haven’t seen their response on when they are planning to. This is serious violation of their duty to UK investors, in my opinion.

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