Degiro closing US ETF Products

D

Decision Tree

Registered User
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Hi All

FYI I received a note from Degiro with a list of US Products which they are no longer supporting.

"DEGIRO has already ended the possibility of buying these US products but allowed you to hold existing positions. Due to the operations necessary to maintain the custody and correct processing of these products, unfortunately, this will no longer be possible.
Therefore, we kindly ask you to close or transfer your position(s) in the relevant products before the 1st of December 2020.
Please be aware that if you do not meet this deadline, we will close the position(s) on your behalf. "

This list includes some, but not all, of US ETFs I had bought in 2017. I guess they will eventually close the remaining ones.

The Gegiro account is a joint account with Mrs Tree, and this will be the first time paying CGT. Can someone confirm the following is correct ?

( Sale Price - Cost Price - trading costs - 1270 -1270 ) * 33%. I would pay this through ROS by December 15th, and include the details in my 2021 form 11.

Thanks
 
Also received this:

Quote:
We would like to inform you about changes that have been made to our policy for withholding lowered tax treaty rates (‘relief at source’) on US income (e.g. dividend).

As of 30-06-2020, we will only apply lowered tax treaty rates on income on a selected list of US products. These changes have been made due to the regulatory and operational setup that is required in order to provide relief at source on US income. For US products available through our platform, but not on this list, the statutory tax rate will be applied.

Which products remain unaffected?
Please find the list of the products that will continue to be in the scope here. In general, these include many of the most frequently traded US stocks. This list contains over 2,000 US products. These will not be affected by the change in service and thus the lowered tax treaty rate will still be applied.

Soon, you will also be able to find the list within our trading platform. You will then be able to see if a specific US product is eligible for relief at source without having to leave the platform. We will notify you within the platform when this has been implemented.

At the moment, we offer US stocks on exchanges in the US and on the European exchanges XETRA and Börse Frankfurt.

None of the Vanguard ETFs I hold are in the supported list.

So I think this means that even if you fill in the W8-BEN form you'll be charged 30% tax rather than 15% on dividends. I'm not sure if you can offset the 30% with Revenue or if you can only offset 15% (does anyone know?)

It's looking like Degiro is no longer the platform for US ETF holdings, so choice seems to be to sell all the US ETFs and buy UK investment trusts/UCITS ETFs or perhaps move the holdings to another platform - Interactive Brokers perhaps or any other recommendations?
 
Usually you can only claim credit for the 15% which is allowed in the double-taxation treaty and you have to reclaim the tax withheld over and above the 15% permitted in the treaty from the foreign tax authority.

This fairly, used advisedly for EU countries who have online websites to submit a claim - but I have no idea about US tax authority website or features. I would imagine it is a mine-field of forms and delays
 
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