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Do you deduct tax?
Updated over a week ago

Stamp Duty

We will deduct Stamp Duty on all UK stocks purchased, with the exception of AIM listed stocks and ETFs. This applies to both General Investment Accounts as well as ISAs. You do not pay stamp duty on US stocks. 

Capital Gains Tax

We never deduct capital gains tax, it is down to you to declare any capital gains yourself.

Dividends Tax

We don’t deduct dividends tax for UK stocks and ETFs. It is down to you to declare any dividends you receive.

Dividend tax is deducted for US sourced income (Limited Partnership shares are taxed differently), this applies to stocks held in either a General Investment Account or an ISA. 

As a non-US investor you will be required to fill in a W-8BEN form, in the app, to declare you are not a US tax resident which reduces the amount of US dividend tax you have to pay on US sourced income from 30% to 15% (correct for the 2023 tax year).

Bear in mind, not all companies listed on US stock exchanges reside in the US, so dividend tax rates may vary. For example, if a company listed on a US exchange resides in Canada, a Canadian dividend tax will automatically be applied. 

Note: Tax is a personal affair and if you are unsure about any tax implications you should seek professional advice.

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