GE CAPITAL UK FUNDING 5.125% 24/05/2023 GBP - US Withholding tax?

I hold these with iDealing. They have withheld 30% of the coupon payment which I assume is US withholding tax (I am checking with them to confirm, no reply yet). Previous payments have been for the gross amount. Does anyone know if they are subject to US withholding tax? They are priced in sterling and called UK Funding.

Comments

  • iDealing tell me they are now receiving the coupon minus 30% US withholding tax. They do not know why this has changed this year. I will move any US related holdings into my SIPP.
  • Did you fill in the tax form W-8BEN?
    Interest normally is not subject to withholding tax and even then, it should be only 15%( assuming you are a UK resident)

    you should definitely pursue this with dealing and ask them to reclaim the tax
  • I'll be interested to hear how you get on - from memory (gradually fading) iDealing are not good about claiming back withholding tax. It's possible that they are not even interested in trying. I think that's why I don't buy shares subject to withholding through them.

    But, of course, it's quite possible that I've got it all wrong.
  • I have checked with iDealing and they have no relationship with the US IRS and are unable to process W-8BEN forms or claim back withholding tax. If you have US investments hold them elsewhere.

    Out of interest I had the same problem with iDealing on dividends on a share called Somero (SOM). I moved it to my SIPP and now receive the full dividend.
  • Update - iDealing yesterday credited the remaining 30% of the coupon to my account.
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