USA shares

[Dontknowmuch]

Hi, sorry if this is a basic question. I hold some Berkshire Hathaway B shares, some in an ISA, some not. Also a little amount in Microsoft. I'm uk based. Does this pose a problem re American tax? Am I liable for anything?
Thanks in advance.

[XFool]

...Yes. US 30% witholding Tax on dividends. This can be reduced to 15% if you supply your broker with a filled in IR Form W-8BEN.

If no dividends, then I don't know.

[Dontknowmuch]

Actually I did realise that, but thanks very much. I was more meaning capial gains tax, estate tax, etc...

[SalvorHardin]

Actually I did realise that, but thanks very much. I was more meaning capial gains tax, estate tax, etc...

UK taxpayers aren't liable for American CGT on their American shareholdings. This is covered by the double taxation treaties. UK CGT only, unless you have American nationality as well as British.

American withholding taxes on dividends can be offset against your UK tax liability (but not if held in an ISA as HMRC ignores ISAs for income tax purposes).

Inheritance tax is awkward as in theory there's no American IHT liability below something like $11 million worth of American assets, but claiming the allowance is somewhat bureaucratic. Others on here know far more about it than me.

A major warning. Avoid shares in American LLCs and LLPs as their dividends are treated as earnings from self-employment and you have to submit an American tax return. I've had several LLPs over the years, all as spinoff from companies; at the first opportunity I sold them to avoid getting a dividend.

American domiciled funds can be awkward as all investors are liable for American tax on realised gains within the fund, even if they haven't been paid out.

[Dontknowmuch]

Thanks - that's clear. I was confusing holding individual shates with american domiciled funds, so I think I should be fine!
Thanks, everyone.