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Where Taxpayers and Advisers Meet

Tax treatment of US-based ETFs

robertjack1
Posts: 4
Joined: Tue Mar 13, 2018 2:50 pm

Tax treatment of US-based ETFs

Postby robertjack1 » Tue Mar 13, 2018 2:53 pm

A UK resident, taxed normally (on the world arising basis) has purchased a SPY ETF in the USA. There is no tax wrapper around the investment (bought via an online brokerage platform in a simple investment account)
He receives dividends from that: does he owe the usual UK dividend taxes?
He eventually sells it and makes a gain: does he owe the usual UK Capital gains tax on that?

DavidTreitel
Posts: 174
Joined: Thu Aug 16, 2012 4:31 pm

Re: Tax treatment of US-based ETFs

Postby DavidTreitel » Sat Mar 17, 2018 4:56 pm

Unless (unusually) this is reporting fund, any gain is charged to UK income tax using the UKs offshore income gain rules.

robertjack1
Posts: 4
Joined: Tue Mar 13, 2018 2:50 pm

Re: Tax treatment of US-based ETFs

Postby robertjack1 » Tue Mar 20, 2018 11:33 am

Thanks for your response. I believe though that for "transparent" offshore funds, which I believe is the case of most usual ETF in the US, they will still be charged at dividend rate (for dividends) + CGT (for gains).

Do you disagree with that?

Thanks


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