I'm thinking that, at some point in the future, I might want to buy some shares listed in the USA. The dollar and £ keep on rising/falling against each other; there are opportunities there to make/lose money :huh:
But I'm wondering about the taxation regime on capital gains and dividends received on shares listed in the US but owned by a UK citizen and UK resident. Not the taxes at the UK end but at the USA end, will the Americans take a cut before my profits are sent to me?
No taxation without representation.
I would speak to your broker about it. There is probably the opportunity to use depository receipts so that you don't have to enter into cross border transactions, but if you really want to trade in the US I'm sure we have tax treaties that keep you from being hit too hard.
I personally think the easiest way to handle international investing is to use mutual funds in your country specializing in whatever type of international stock you want. If it is an index fund and the returns roughly match the index without forcing you to pay taxes to a third country, you know you are okay.
I have had a lot of US shares. I never had a taxation from the US.
I have some international stocks (Japanese, at one point I had some Brazilian and Mexican) and with my brokerage account foreign tax gets automatically withheld on every sell transaction as well as every incoming dividend payment.
Quote from: Caliga on June 18, 2009, 12:41:27 PM
I have some international stocks (Japanese, at one point I had some Brazilian and Mexican) and with my brokerage account foreign tax gets automatically withheld on every sell transaction as well as every incoming dividend payment.
:o Why do you hate America Cal!?
Quote from: jimmy olsen on June 18, 2009, 02:01:46 PMWhy do you hate America Cal!?
What are you talking about? If I am a part-owner of a foreign company as an American, aren't I making America stronger? Soon we shall own: everything :cool:
Quote from: Caliga on June 18, 2009, 03:42:36 PM
Quote from: jimmy olsen on June 18, 2009, 02:01:46 PMWhy do you hate America Cal!?
What are you talking about? If I am a part-owner of a foreign company as an American, aren't I making America stronger? Soon we shall own: everything :cool:
Tim displays two dimensional thinking.
Quote from: Caliga on June 18, 2009, 12:41:27 PM
I have some international stocks (Japanese, at one point I had some Brazilian and Mexican) and with my brokerage account foreign tax gets automatically withheld on every sell transaction as well as every incoming dividend payment.
Did you have to pay a mongo fee to get the Nip stock?
Quote from: Admiral Yi on June 18, 2009, 03:45:20 PMDid you have to pay a mongo fee to get the Nip stock?
I don't recall. I've held it for over ten years now (it's Sony).
Quote from: Caliga on June 18, 2009, 03:46:35 PM
I don't recall. I've held it for over ten years now (it's Sony).
You sure you don't have Sony ADR's?
There are sony ADR's on the NYSE. With those you shouldn't have to worry about foreign withholding.
Quote from: Admiral Yi on June 18, 2009, 03:47:52 PM
Quote from: Caliga on June 18, 2009, 03:46:35 PM
I don't recall. I've held it for over ten years now (it's Sony).
You sure you don't have Sony ADR's?
No, the shares aren't in ADR form.
Is it worth doing if it's already on the London exchange(LSE)? :bowler:
Thanks for the replies :cool:
@citizen k..........yeah, I think so. The £/$ rate wanders all over the place and if it goes back to 2$ to the £ then I think investing American stocks is a good idea. These are fairly long-term investments I'm thinking about btw, so at some time in the future the rate will go to a much lower level, at which point one would sell up and purchase stocks in the currently undervalued currency. That is the theory anyway, no doubt there are many things which can go wrong :P