America's Internal Revenue Service (IRS) is as keen to maximise its tax revenues as the Inland Revenue. How much of your investment income and gains it takes depends on the tax treaties in force between the United Kingdom and the United States.
The rationale of tax treaties is that it is unfair for residents of one country who have earnings in another to be taxed on those earnings by both countries - in effect, to pay double-taxation. At the same time, the tax authorities want to make sure that the appropriate tax is paid in at least one of the countries!
In very broad terms, a tax treaty involves countries saying to another "We won't tax yours if you don't tax ours".
The current position between the UK and USA is that UK nationals can avoid having withholding tax deducted by the IRS from their American earnings if they complete form W8BEN. This form, which can be provided by your broker, confirms that you are a resident in the UK, and implicitly paying UK tax. There will however be a withholding tax on dividends pending the tax treaty. It's 15% for the UK.
Once you have successfully completed and filed form W8BEN, you will have to declare your American earnings on your UK Tax Return, but at least they will reach you from the States without any tax having been applied there.
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