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
  • image.png

  • Posts

    • Still the silence is deafening in here. When will this happen?  it have moved most my Trading Capital to another broker who does support Trading veiw Does the deal with Tastytrade have something to do with this lack of progress?  
    • Well to me I feel that the  crypto market values transparency and reliable services. And Bitget has embraced this approach, attracting a large following,gaining up to 1.4million twitter followers,. Recent data shows significant growth in trading volume, solidifying its position in the market.  The exchanges  focus on user protection and satisfaction has fostered a loyal community. As the platform continues to evolve, its value may continue to grow. What are your thoughts on the importance of value in crypto, and what do you see as Bitget's future potential?
    • As more users embrace Dapp, it gets easier to trade crypto, engage in DeFi lending/borrowing and trade NFTs. With the growing need to trade NFT comes the introduction of Love Power Movement, a transparent and accessible marketplace with the best conditions for successful NFT sales. Although the NFT sector has recorded significant growth, it's still impeded by challenges like low protection of artists' and buyers' data, absence of organised policy protecting sellers and buyers amongst others. Love Power aims to tackle those by offering fixed commissions and royalties to creators, ensuring proper profit for sales. LPM token forming a crucial part of the ecosystem has been launched with no presale and VC investment, with intent to direct proceeds from token sales to NFT artists. As $LPM prepares to list on Bitget, the vast community of Love Power Movement would surely be watching keenly.
  • Create New...