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I was wondering how stamp duty and tax works with buying and selling international stocks e.g. US companies.

I currently don't get charged stamp duty when buying US stocks with my broker and have not received any dividends from any company just yet.

As this is through an ISA are there any charges in the UK I should know about? I have read dividends will be taxed by the companies country but I am not too worried about that. I have also seen some brokers charging currency conversion fees but again I am not concerned about this.

Thanks a lot :)

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  • You can mitigate the US withholding tax somewhat by submitting a W8-BEN form, but I think these days most platforms/brokers pretty much require you to fill one out before they let you trade US shares.
    – timday
    Commented Jul 30, 2020 at 12:02

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No UK stamp duty on foreign stocks. Dividends can be taxed at country of origin as you observe. Outside of an ISA, you may have to pay income tax on foreign dividends depending on exact situation you are in (basically how much you earn overall). You don't have to worry about this as in an ISA where all dividends and capital gains are tax exempt while in the wrapper.

You will have to change the money to foreign currency and back again which will carry a cost in both direction (worth being careful with your broker choice on this as lot of divergence between their fees on this).

In short, not much to worry about here in your spot that you haven't already thought about.

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