Poolefox - my circumstances were different from yours. I didn't apply to the Israeli authorities for tax relief PRIOR to payment, so my dividend arrived with 25% withholding tax already deducted at source. Accordingly, I was taxed in UK @ 10% rate, but was given a full credit for the 25% tax already deducted - net effect was a 15% tax refund.
See link below and ive checked this with my broker you can reclaim 10% of the 25% withholding tax by getting a tax voucher when they go ex dividend and applying to the Israeli tax authorities before they pay the dividend.Article below confirms
Dividend income received (up to maximum of £5,000) is no longer taxable from 6th April 2016. However, according to HMRC website, withholiding tax deducted at source from foreign divis can still be reclaimed from HMRC. This is subject to the foreign country from where the divi is being paid having a double taxation agreement with the UK - Israel does. Since PLUS deducts withholding tax @ 25% it would appear that the entire 25% may be reclaimable instead of the 15% rate, which was in place prior to 6 Apr 2016 - need this point clarified. DYOR
I am no accountant, and am hoping someone can shed some light on an issue for me:
I hold a small post of Plus500 shares in an ISA. I know that 25% of a little is not much, but can I somehow end up paying less tax (either less to the Israeli government, get a refund from the UK government, or swap it for some of the income tax the UK government takes from me each year)?
I can only assume the market does not believe the preliminary results as recently published. With a final divi of nearly 15% declared at todays sp, it does look a bit of a steal. For my part, the co has paid out well over $100m in divisover past 2 years, so obviously has the cash. Recently announced new territories of Israel, NZ ans SA will be revenue and profit enhancing. The red flag is the FCA proposals due end this year, however the co states that majority of profit is generated by the spread and therefore ouside of anything the FCA can do. What`s not to like?
I have mentioned this before on this BB, probably, this time last year, that if you have a long CFD on PLUS, the divi is paid without any deduction of tax, and is paid on EX divi date, not pay date. boomm boom. BTW, the shorts on PLUS will have to pay the divi, so I would expect the 2 shorters at present to be redicing their positins in the next few weeks..
Speman - at least we can agree that the Israeli government are not stealing (which by the way, is different from 'steeling') money from UK RESIDENT investors. Had you declared your tax status in the first place, I may have been more sympathetic to your plight. Finally, it makes no difference what rate of withholding tax is deducted at source - it is more a case of whether you can reclaim any withholding tax to redress the balance. I'm sure Belgium and Israel are the same in that regard. DYOR
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