Tax on US and UK shares when sold

J

janeymc

Registered User
Messages
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Folks

I have looked and cant find anything on this. To start I will outline the situation and then ask a few questions.

I have bought €8K or $10K dollars (€8 = $10 for argument sake) worth of shares in an american company on the NASDAQ.

I would like to sell these shares now. I would get €16K or $20K if they are sold at their current price.

I have done a similar thing in the UK with a UK company.

I have the share certificates.

Questions

How will I be taxed in the US for my shares (no dividends).
How will I be taxed in the UK for my shares (no dividends) when I sell them.

For both of these shares how would I be taxed by the Irish Government presuming that I am taxed in the UK and US.

For the future is there a good way of buying shares in these countries that is more tax efficient.

Thanks for your help folks.

Janey
 
I haven't heard of foreign brokers deducting tax from share sales. They normally deduct taxes from dividends, but not from share sales. So Irish CGT at 20% of the gain (less your annual allowance of €1,270) will apply.
 
If you bought us shares through a us broker you should have filled out a w-8 form and s supplemental w-8 form.
If you haven't they can withohold 28% of dividends and share sale proceeds until w-8 submitted.
This form confirms you are a non us resident.
It is a form of withholding tax in essence.
 
Just to be clear the relevant US form is a W-8BEN. This is a declaration of non US residency which allows the broker to avoid deducting witholding taxes. Of course Irish taxes (e.g. CGT) will need to be declared and paid. I'm not sure what, if anything, is the equivalent UK version of this form. Best to check with UK Inland Revenue.
 
yes clubman this is as you say as far as I know
Not aware of any such form with uk but could be wrong
 
Don't forget when your calculating the rate of tax to pay you will need to convert the UK or USD equivilant to Euro both at the rate when you bough and sold the shares. The revenue have a fixed rate per year they will give you to calculate that amount or you can take the rate exactly on the day the trade was made. I usually work both figures and see which one comes out the best for me.
 
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