LSE listed ETFs hit by US dividend tax LSE listed ETFs hit by US dividend tax
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  1. #1

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    Default LSE listed ETFs hit by US dividend tax

    I hold ETFs in an investment account owned by my Ltd co.

    For some reason, this year my broker has started withholding full 30% of US taxes on dividends. This has never happened before, and I have always diligently filled in my W-8BEN-E. I have tried to get an answer from the broker, but pulling out my own teeth is easier than getting a straight answer from them, and my accountant is clueless about foreign taxation.

    Anyone else experiencing this, and does anyone know exactly how to fill in W-8BEN-E to avoid this?

    The worst thing is, the ETF in question is listed in London Stock Exchange, in GBP --- I didn't even buy a US stock!

    Thanks.

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    What ETFs are these?

    And what broker?
    Last edited by syrio; 16th May 2017 at 17:52.

  3. #3

    Contractor Among Contractors

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    I was going to say "Sounds like a cock-up, give them a ring".
    BUT
    Does the W-8BEN-E apply to companies or just individuals?

    I have one for US stocks held in my SIPP, but that's in my name.

    Sounds like a cock-up, give them a ring.

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    When did you fill in your W8-BEN form? If it was more than 3 years ago, it will have expired.

    But I would expect that your broker would have been able to tell you that.

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    Quote Originally Posted by syrio View Post
    What ETFs are these?

    And what broker?
    The ETF is EMDV (ProShares Emerging Markets Dividend ETF) and the broker is Interactive Brokers.


    Quote Originally Posted by RSoles View Post
    I was going to say "Sounds like a cock-up, give them a ring".
    BUT
    Does the W-8BEN-E apply to companies or just individuals?

    I have one for US stocks held in my SIPP, but that's in my name.

    Sounds like a cock-up, give them a ring.
    The W-8BEN is for individuals, the W-8BEN-E is for companies.


    Quote Originally Posted by syrio View Post
    When did you fill in your W8-BEN form? If it was more than 3 years ago, it will have expired.

    But I would expect that your broker would have been able to tell you that.
    That's the only possibility I can see. I normally get a reminder from them near the time of expiry.

    I have raised a second ticket with them with detailed information (after they tried to fob me off initially). Let's see what they say.
    Last edited by OneManBand; 17th May 2017 at 06:54.

  6. #6

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    I was informed by my broker that there has been a change to the rules with regard to derivatives in the US where tax is now deducted, this is maybe what is causing it.
    I'm alright Jack

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