I am a U.S. citizen, living in the United States. I am interested in buying shares of a company that is traded on the London Stock Exchange, but not in the US (including as an ADR). I've tried researching what the tax consequences would be, but all the articles I find are about US citizens buying/selling foreign stocks while living in different countries or non-US citizens buying/selling stocks while in the US.
My brokerage firm is Fidelity, and they allow international trading. The stock that I want to purchase is listed in Fidelity once international trading is approved so I would buy/sell the stock through my current brokerage account with Fidelity.
Question: Does anyone in this community have experience or knowledge with how the taxes in this situation would work? Would I have to pay regular capital gains tax just to the U.S. or both the U.S. and U.K.?