Hi, do you pay 15% tax at the time you buy a US stock, Is this included in the price when you fill in the wben form?

This has to do with dividends, not with the price of buying or selling the stock. The US government will hold back 15% of any dividends that a company pays you (30% if you’re not eligible for the reduction that you get through the W8-BEN form). You won’t see much evidence of this, all that will happen is your dividend payments will be less than they otherwise would have been, and you might not even notice.

Other (more expensive) brokers will provide you an annual tax statement showing the amount of dividends you have received and the amount of tax that has been withheld, but Freetrade does not really do tax reporting :frowning_face:.

Sorry, but does that mean we need to report the tax?

You should seek advice from a financial adviser if you are unsure of your tax liabilities here in the UK.

Whether or not you report the dividends will be based on which type of account you have with Freetrade and your personal circumstances with taxation.


You do have to report dividend income, including dividends from foreign companies, on your tax return. You might not have to actually pay anything, as there is a tax-free allowance of £2,000, but you will be expected to report the income you receive. But as @jasejase says, tax is complicated; the rules and allowances change depending on what other sources of income you have. If you hold your assets within an ISA or SIPP, that simplifies things greatly. See Tax on dividends - GOV.UK and Tax on foreign income: Reporting your foreign income - GOV.UK as a start.

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