Withholding Tax is generally deducted from dividends, interest payments and possibly other types of corporate action distributions paid by foreign corporations or governments. Withholding Tax is deducted at the point of payment and paid to the government of the country from which the payment originates (i.e. the source of the income). The amount of Withholding Tax that is deducted may differ from country to country and is likely to affect the value of the returns you may expect from foreign investments. For example, a 30% withholding tax rate is applicable to U.S. dividends.
If you have received foreign payments as a result of trading international securities through us, you can view how much Withholding Tax you have paid on your Consolidated Tax Certificate. This is available to view online. If you are not registered online then we can send you a Consolidated Tax Certificate by post following the end of the tax year.
Halifax Share Dealing Limited has obligations to the Internal Revenue Service (IRS) with respect to customers that hold U.S. securities and receive U.S. source income. We are required to obtain documentation from these customers that allow us to comply with these obligations and, where the customer is eligible, we can provide a reduced rate of withholding tax to their U.S. income. Therefore, customers who intend to trade in U.S. securities or who are currently holding U.S. securities must provide a valid Form W-8 or Form W-9.
Please note that we do not provide tax advice and if you have any questions you should consult a professional tax advisor.
Please send your completed form to:
Corporate Actions Department
Lloyds Bank Share Dealing
Lovell Park Road
The Lloyds Bank Direct Investments Service is operated by Halifax Share Dealing Limited. Registered Office: Trinity Road, Halifax, West Yorkshire, HX1 2RG. Registered in England and Wales no. 3195646. Halifax Share Dealing Limited is authorised and regulated by the Financial Conduct Authority, 25 The North Colonnade, Canary Wharf, London, E14 5HS under registration number 183332. A Member of the London Stock Exchange and an HM Revenue & Customs Approved ISA Manager.