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  1. 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%.
  2. 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%
  3. Hi, 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.
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