With immediate effect we will no longer be able to purchase US securities for our Crest/Nominee clients unless one of the following US Tax forms has been duly completed and returned to us.
“W-8BEN” Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding
“W-9” Request for Taxpayer Identification and Certification
The completion of this form is in fact a requirement of the US Government and ensures that US withholding tax is calculated and properly accounted for. As your broker and custodian we are being forced to ensure that every client who holds an American Security in our nominee completes the form. The US authorities have upped the stakes and are now proposing that non compliance will result in severe financial penalties.
If you have been sent a form by us for completion please return it to us as soon as possible. Please note that if you do not return the documentation we are in breach of our obligations to the US and may be left with no other option than to sell your holding.
It is unfortunate that such heavy handed tactics are being enforced on shareholders but it is clear that we must make every effort to comply.
We regret that we have to adopt such a hard stance in this regard but I am sure that you can appreciate that the consequences of financial penalties, and having to pass them on to our clients who have not complied, leaves us with little choice in the matter.
If you require a form or we can provide you with any further information regarding this matter please contact our client services team on 0845 213 4400.
“Investors consider the security of their money and the quality of administration to be the two most important factors when they use a broker — 80 per cent of respondents deemed them ‘extremely’ or ‘very’ important. Stocktrade is the winner of the online category, with a mean score of 4.67 out of 5 for financial security and dealing-system controls, against the benchmark of 4.38. Only one other online broker tops 4.5 in this respect. On the issue of administrative quality — easy to use systems, few errors and prompt paperwork — there's generally greater dissatisfaction among respondents, but Stocktrade achieves a creditable 4.5, against a benchmark of 4.2.”
Can you invest this year? If Yes, Stocktrade can offer a fast efficient service for ISA Transfers. The charges are competitive and the service is straightforward and easy to use. If you have not subscribed in this tax year and wish to take advantage of this opportunity to shelter your investments in a tax efficient way, please view our ISAs section for more information.
World Markets dropped in value and many share prices have unfortunately not fully recovered as a result. If you anticipate any recovery then it may be worth considering sheltering your shares from UK Capital Gains Tax and Income Tax within a Stocktrade ISA.
Stocktrade are offering clients the opportunity to sell and repurchase UK shares in a Stocktrade ISA for a flat charge of only £15 per stock (for both the sale and the repurchase). The shares held in your own name are sold and the same shares are bought back simultaneously within an ISA. There can be significant tax benefits and more information on the tax benefits of a BED & ISA transaction can be found by viewing our BED & ISA section.