Jump to content
The Twitter Feeds are now back on the Platform ×

Getting charged excessive 25% tax on dividend on Spreadbet on Plus500

Guest aakash30

Recommended Posts

Guest aakash30



I have a long spreadbet position on Plus500. The stock went Ex-div on the 22nd of Feb and I was charged a 25% tax on the dividend. If I was long the underlying I would have been charged an effective 15% tax rate which is what IG would be paying if they were hedging with the underlying.


Charging me 25% seems to be a way for IG to make free money of 10% on the dividend.

Edit: I also called IG 3 times before the ex-date to try to figure out how much tax I will be charged and the customer support each time gave me incorrect information and said I would be charged no tax as I have a spread bet account. 


I wonder if anyone has run into this issue before or if someone from IG can look into this for me.




Link to comment
Guest aakash30

Yes agreed but the amount of dividend paid out is in IG's hands and in this case they took a 25% haircut on the dividend (to account for the tax) when however the appropriate tax rate is 15%

Link to comment

Hi  - thanks for your query. 


Plus 500 are actually incorporated in Israel, and as such they have a 25% tax on dividends which is processed at source. Further to this the div is paid in USD (despite the stock being quoted in GBP) so there needs to be a conversion applied of GBPUSD. This is then simply passed on in it's entirety directly to clients, however as you stated spreadbetting and the profits on those bets are tax free in regards to CGT. 


I hope this clarifies things. 

Link to comment
Guest aakash30

Thanks for your response. I agree the Israel tax at source is 25% however if I held the underlying I could apply for a 10% discount due to the UK Israel tax treaty. I am sure IG would be doing the same with any of the underlying of Plus500 they hold as a hedge and I would have done the same if I held the underlying to give me an effective tax rate of 15%. 


Having the exposure through the Spreadbet locks me into a worst case scenario of paying 25%. Also it didn't help that when I called IG to clarify this point multiple times, there was no mention of the 25%.

Link to comment


This topic is now archived and is closed to further replies.

  • General Statistics

    • Total Topics
    • Total Posts
    • Total Members
    • Most Online
      10/06/21 10:53

    Newest Member
    Joined 31/03/23 21:31
  • Posts

    • Hello everyone, i am looking to hold shares long term Apple Tesla in a spreadbetting account just wounded if there is a calculation example Tesla $195.00 1 share = ? ponds per point spread bet. Thanks for any help
    • #USDCAD: Time For PullbackUSDCAD reached a key level.Testing that, the price broke and closed above the resistance line of a falling wedge pattern.I expect a pullback now.Goals: 1.355 / 1.3577  
    • Charting the Markets: 31 March The FTSE 100, DAX 40 and Nasdaq 100 surge higher on a positive outlook as EUR/USD, GBP/USD pause their ascents while USD/JPY continues to rise as the greenback appreciates. WTI remains capped by resistance, gold forms a technical triangle as Robusta coffee trades near six-month highs.   Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Friday 31 March 2023                 This is here for you to catch up but if you have any ideas on markets or events you want us to relay to the TV team we’re more than happy to.
  • Create New...