UK Stamp tax on SWRD LN

Hi

I bought units of SWRD LN ETF in LSE with USD currency.

I am not UK-resident.

My broker insisted to charge me with UK stamp tax of 0.5% , altough I understood that foriegn ETFs in USD are exempted from this tax.

However I could not convince the broker.

Who is right? is there any official reference?

Thanks

 

I thought all etfs were stamp duty exempt. Who is your broker?

 

I thought also. Psagot (I live out of EU) but they do it through a UK bank as a third party and they told me the UK bank insisted I have to pay the stamp tax.

I want to prove them they are wrong, but couldnt find official general source or specific to SWRD LN.

Thanks,

 

use interactive brokers, you can do the fx at bank rate for $2.50, and it is a multi currency account.

 

With IBKR there are issues (posted on the specific forum) beside they dont trade with my local exchange.

But anyway - I am still trying to understand where can I find official source that this ETF is really exempted before I try to buy with different broker .

 

I agree, its a ETF, domiciled in Ireland and traded on the LSE so exempt from stamp duty , I have never paid stamp duty of any ETF

https://www.gov.uk/hmrc-internal-manuals/stamp-taxes-shares-manual/stsm101065

and

https://www.legislation.gov.uk/uksi/2014/911/made/data.html

UK gov websites

 

Interactive Brokers have connected to the Israeli stock exchange recently.

 

This is correct but Israel citizens are not allowed to trade via them in the Israel Stock Exchange.

This option is opened only for non Israel citizens

 

From my experience (10+ years institutionally trading etfs for a large shop) domicile is the factor that matters for tax liability. Like many tax issues it is not always black or white if you owe tax and may be your own responsibility to accrue your own taxes owed to the foreign government, or your broker may automatically charge you or factor it into the trade comp. Sometimes the exemption is based on the broker/member you are trading through and whether they have the exemptions approved by the foreign sovereignty, so 2 different people doing the exact trade 1 through Schwab 1 through IB can one/not owe.

sorry for no definitive answer.