Tax Situation7 Jun 2017 12:44
With a valid W-8BEN, the only taxes that you will pay to the USA is the 15% foreign tax withholding on share dividends deducted at source which can be credited against your UK tax liability. Example. - If you are a 20% tax payer, you need to declare this as "foreign income" and you will still have a net liability of 5% to HMRC. Neither ISAs nor SIPPs protect you from foreign withholding tax. The IRS and other foreign countries don’t care about UK tax shields, so you will have to pay 15% withholding tax.