Jump to content

tax withheld on dividends


Recommended Posts

It is my understanding that foreign withholding tax on dividends paid on shares held in an ISA is unrecoverable, i.e. we can't deduct it from other tax or declare it as a loss. Please correct me if I'm wrong. So, when making an investment decision, it would be good to know how much tax will be withheld. I've got some odd things going on in my account. Most companies traded in the US are withheld at 15%, but for some reason Canadian Pacific is taxed at 25.4%, and Regal-Beloit is not taxed at all (though it was at 15% previous to Nov. 2018). I've got two German companies, PNE AG and Energiekontor; Energiekontor is taxed at 26.3%, PNE was also, until 2019 when it dropped to 0%. Is there any logic to this? And is there any way of knowing in advance what the rate will be? So far I've had one dividend payment from an Australian company, untaxed, can I assume they all will be? I've had one from Ireland at 20%, and one from the Netherlands at 15%.

Any insight would be welcome.

Link to comment
25 minutes ago, dmedin said:

I think you need an accountant to answer this for you.  The real reason we have such complex tax laws is to keep highly-paid accountants and lawyers in a job

But Economists are ok right..? 😉

@LisaH check out HMRC website, it is not the easiest read but should have everything you need.  Before you pay for expensive professionals you can always ask HMRC under the guise of what you need to do to fill in your tax return.  You can also ask whoever has provided you with the ISA, they should know the specifics but I think your statement is correct.  I also think that any tax recovery is down to your ISA provider not you, that would obviously be different for actual shares you hold in overseas companies.

So, if your question is exclusively about stuff in your ISA, contact your ISA provided.  If it is also about individual shares you own outside an ISA, try HMRC first.

Accountants 1 - Economist 0  HaHa...

  • Like 2
Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      19,990
    • Total Posts
      87,952
    • Total Members
      69,145
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    Bobminor
    Joined 25/09/22 20:58
  • Posts

    • Stocks: AAPL, AMZN, NVDA, TSLA, GOOGL, BRK.B, SQ, META, NFLX, ENPH, MSFT, JPM. Elliott Wave  US Stock Bear Market: AMZN, AAPL, NVDA, TSLA, GOOGL, BRK.B, SQ, META, NFLX, ENPH, MSFT, BAC, JPM, GS. Elliott Wave Technical Analysis  Stock Market Summary: Elliott Wave Count: Wave (ii) or (iv) depending on the stock. Analysis US Stocks: Tesla TSLA, Amazon AMZN, Nvidia (NVDA), Apple AAPL, Microsoft MSFT, Berkshire Hathaway (BRK/B),Block, Inc (SQ), Meta Platforms, Netflix (NFLX), Enphase (ENPH), Alphabet GOOGL. XFL Finance Sector ETF, JPMorgan JPM & Bank of America BAC, Goldman Sachs Group Inc (GS) Stock Market Trading strategies: The market is still trending lower in the medium term. Continue on the short side of the market and short the corrective rally today.  Market News: The Fed will save the stock market and cut interest rates if a deep recession occurs next year, JPMorgan said./ Some U.S. firms wait to issue bonds in a bet rates will come down Video Chapters 00:00 SP500 00:58 Apple (AAPL) 07:03 NVIDIA (NVDA) 08:28 Amazon (AMZN) 10:50 Meta Platforms (META) 12:01 Netflix (NFLX)  14:42 Enphase (ENPH) 16:18 Tesla (TSLA) 20:30 Alphabet (GOOGL)  22:59 Microsoft (MSFT) 32:58 Block Inc. (SQ)  34:37 Banks JPM, GS 43:15 End. Thanks for supporting! Analyst Peter Mathers TradingLounge™ Australian Financial Services Licence - AFSL 317817 Source: tradinglounge com  
    • Hey @pravid17 I hope you're well.  In the leveraged trading industry there are brokers who don't hedge client's exposure and brokers (like ourselves) who do hedge client's exposure.  In a perfect world the exposure of short clients would net off the trades of long clients however this is not always the case. Our hedging model allows us to take an exposure in the underlying market for the remaining exposure which doesn't offset - This way we don't need to hedge every trade, worry about profits of our clients and results in lower costs for hedging in the underlying market (commissions, interest etc.). So say 60% of IG customer exposure in the ASX was long and 40% of exposure on the ASX was short. The 40% would net each other off but there's a remaining 20% of customers who need to be hedged to cover their positions. We go into the market and hedge this.  We make our money primarily through our spreads and overnight funding  with other fees making up a small proportion of our revenue. I would like to remind also that IG is regulated by several bodies globally, including top-tier regulators like the UK's FCA, Germany's BaFIN, Australia's ASIC - This should be quite reassuring from a dealing execution and transparency perspective.  I hope this helps, let me know if you have any other question 
    • A survey from Reviews.org, which featured 1000 Americans, found that as many as 1 in 4 US subscribers may quit the service in the next year.    Jeremy Naylor | Writer, London | Publication date: Friday 23 September 2022  There was an interesting breakdown, but the main reason was affordability. Only 18% said they would move to a cheaper competitor. IGTV’s Jeremy Naylor looks at the numbers. Netflix subscription woes Netflix Inc (All Sessions) could be in for a rough time ahead over the next 12 months if a new survey is anything to go by, which was conducted in the US. Out of the 1,000 adults that took part in this survey undertaken by Reviews.org, around 25% of those that were covered said that they would be cancelling their Netflix subscription within the next 12 months. Now, it says with that 25% of US subscribers to Netflix considering leaving, not to join a competitor, but mostly because of pressures on household bills. This is how it is split: rising cost of subscriptions - 40% inflation - 20% a lack of content - 22% spending more time on the services of others - 18% So you can see, a minority said they were going to other services, such as those provided by Disney Plus or Amazon Prime. The cost of Netflix has risen dramatically this year as its basic plan increased by 11% in January and its other plans by 20% to 25%. Now these were the first price increases for three years, so that itself is relatively new for a lot of subscribers. Netflix share price Let's take a look at the Netflix share price. You can see on the far left hand side of this chart the COVID lows at $290.39. We saw a whacking great increase there of 141% to the top and the record high in Netflix shares back in November 2021. And that was when subscriptions were rising, people were paying more for their services, and it was all humming beautifully. And then all of a sudden people started questioning the numbers of streaming services they were undertaking with some deciding to withdraw from Netflix. All of a sudden the big drops started coming through with profit warnings and sales warnings. We've recently hit a new low of $162.50. Since then there has been a little bit of an increase. We're currently trading at $232.75, but we are down by a margin of 1.75% in today's session, which reflects this news that we could well see a relatively large drop in subscribers for Netflix in the US within the next 12 months.
×
×
  • Create New...