I have been asked to fill in a W8 form which is for trading US stocks by the trading platform that I use, when trying to buy Diversified Oil and Gas (DGOC) even though the company is listed on the LSE. They couldn't give me an answer as to why but thought it might be because the company is incorporated in the US. Has anyone else come across a similar issue?
Hi SEClay, yes, what you have been told is correct. You'll want to fill out a W8-BEN form in any event as it means - assuming you're a UK resident - you'll pay a lower rate of tax on your dividends. I think it reduces the amount withheld from your dividend for tax purposes from 30% to 15%. I have had to do this for my shares in Diversified Gas & Oil (LON:DGOC), as well as other U.S. registered companies (but listed over here), e.g. Somero Enterprises Inc (LON:SOM).
The only exception to the above is if you're buying through in your SIPP, where no withholding tax is payable so you won't need to fill out a W8-BEN.
All the very best, Will
