• Welcome to Sensible Investors, if you wish to comment on any threads and join the Sensible Investors community Click here.

SIPPs Withholding tax exempt

Smart Finance

Administrator
Staff member
Moderator
Feb 23, 2021
692
409
3,887
gumroad.com
While writing the next part to the Sensible Investors eBook, i came across an article about how with a SIPP you may not have to pay WHT.

Quite interesting and not something i would have known otherwise. Though this doesn't affect my investment strategy because I only hold one fund in my SIPP.

SIPP can exclude withholding tax but this comes down to the broker. You may be able to be paid the income at gross. This reclaim can only be done by the SIPP administrator, the administrators generally don't consider this worthwhile for anything other than US shares.
https://the-international-investor....im-withholding-tax-foreign-dividends-isa-sipp
 

The Dividend Experiment

Administrator
Staff member
Moderator
Feb 23, 2021
485
285
2,678
Yeah, I had heard about this before too, didn't fully understand it nor had use for it as I don't have a SIPP. Good to get some clarification on how it works exactly
 
  • Like
Reactions: Smart Finance

Smart Finance

Administrator
Staff member
Moderator
Feb 23, 2021
692
409
3,887
gumroad.com
Yeah, I had heard about this before too, didn't fully understand it nor had use for it as I don't have a SIPP. Good to get some clarification on how it works exactly
Not sure how many brokers would go through the effort to claim it back. Would have thought it would need to be fairly substantial. I never really knew about it until doing a dive into withholding tax.
 

gezmond

New member
Jun 12, 2021
2
0
91
Not sure how many brokers would go through the effort to claim it back. Would have thought it would need to be fairly substantial. I never really knew about it until doing a dive into withholding tax.
My understanding is that 2 of the big players hl and ajbell youinvest domso automatically (after filling in w8) form
 

The Dividend Experiment

Administrator
Staff member
Moderator
Feb 23, 2021
485
285
2,678
My understanding is that 2 of the big players hl and ajbell youinvest domso automatically (after filling in w8) form
Do you have the account? How does it come back to you in terms of the admin, is there a slight delay and comes in as income later or it's automatic as the dividend comes in?
 

gezmond

New member
Jun 12, 2021
2
0
91


I have a youinvest sipp, but haven’t bought US stocks