Foreign Dividends in ISA

[bruncher]

I've had a 27% tax applied to a dividend from a Danish Company. There's a treaty between Denmark and UK, but does this mean I could claim the tax back as a non-resident. I have avoided double taxation only because the UK waives tax on dividends within ISA's.

I will see if I can ask the Danish Tax Office tomorrow, but if anyone has already trodden this path, I would be grateful to hear about it.

[XFool]

...Sorry, I don't know the answer to your question. Hopefully someone else may.

Just two things: This is fine for US dividends, at least their witholding tax is reduced from 30% to 15% if you can sign a US, IRS W8-BEN form. In or out of an ISA is of no relevance to the IRS.

This matter came up a long time ago in respect of Spanish dividend witholding tax, on Santander shares. The answer was, yes, you should be able to get them to reduce it but, good luck with that! i.e. It was more trouble than it was worth - unless, I believe, your Santander shares were held in Santander's own nominee account.

It is supposed to be different in pension accounts, like a SIPP, with no witholding taxes charged. But again, that's the theory...

[BullDog]

Ask the platform provider? As far as I am aware, no foreign tax authority recognises UK ISAs as a tax shelter.

[bruncher]

It would be the same regardless of whether the shares are in an ISA or other trading account.

For anyone interested, the Danish Tax authorities provides a form which needs to be completed by the person claiming refund of withholding tax, and there's a portion of the form which HMRC has to complete - confirming that the claimant is a UK tax payer.

HMRC took nine months to do their bit (and they missed out a portion). I have submitted this, however, with other documentary evidence - i.e. that I was a shareholder and that I received the dividend.

We'll see whether the Danes accept a partially-completed form from HMRC, or whether they send it back, and whether they need nine months to complete a transaction.