Commission etc. taken from dividend?

[Guest Wisp111]

Hi folks. Newbie question.

I have some shares in Icahn Enterprise LLC (NASDAQ:IEP). Was expecting a $1.75 quarterly dividend and was paid 18th September. However, I received £1.1025 per share, which at the quoted exchange rate worked out to approx $1.445. The dividend was paid at the expected rate ($1.75) according to Icahn etc. so where did the remaining 30 cents go?

Is it all exchange commission, or are there other deductions too? Just after info so I know what to expect in future.

Many thanks!

[Guest PandaFace]

Withholding tax on that one pal. True irrespective of the broker and taken at source. 

[JamesIG]

Hey - as noted by @PandaFace there is a 15% to 30% withholding tax on American divs depending on the tax treaty with your specific country. You can read more on this below. If you've filled in the relevant tax form with us then this will be 15% if you're a UK citizen.

https://www.irs.gov/businesses/us-tax-withholding-on-payments-to-foreign-persons 

[Guest Wisp111]

Thanks for the info folks, now I know for sure what's occuring I can factor it in for future behaviour!

Re the form, that would be my W-8BEN? Filled in when I joined.

[JamesIG]

12 hours ago, Wisp111 said:

Thanks for the info folks, now I know for sure what's occuring I can factor it in for future behaviour!

Re the form, that would be my W-8BEN? Filled in when I joined.

Hey @Wisp111 - although I wouldn't be able to confirm directly as we do not offer financial or tax advice, the majority of regular clients will probably have needed to have filled in a W8Ben.