Dividend tax · United Kingdom investor → United States dividends

United Kingdom investor receiving United States dividends: 15% withholding

If you're a United Kingdom resident receiving dividends from a United States-domiciled company, the United States tax authority withholds 15% at source under Article 10(2) (US-UK Income Tax Treaty). The statutory non-treaty ceiling is 30% — the bilateral treaty saves you 15 percentage points. Verified 2026-05-27.

Per $100 gross dividend

$85.00 net

$15.00 withheld at source

Treaty rate

15%

vs 30% statutory (saves 15pp)

Verification state

verified

last verified 2026-05-27

Treaty reference

Article 10(2) (US-UK Income Tax Treaty)

Portfolio (general) dividend rate per IRS Table 1. The lower direct/intercorporate rate (typically 5%) applies only for corporate holders of ≥10% voting stock; this is the rate retail/portfolio investors face.

Source citation

IRS Table 1 (Rev. May 2023): Tax Rates on Income Other Than Personal Service Income — Paid by U.S. Corporations — General dividends column. https://www.irs.gov/pub/irs-lbi/tax-treaty-table-1.pdf

Treaty rates shown are typical statutory withholding rates for direct portfolio investment. Actual rates depend on holding period, ownership percentage, investor type (individual vs. pension vs. mutual fund), limitation-on-benefits tests, and other factors. Consult a qualified tax professional for your specific situation.

United Kingdom resident tax treatment

UK generally imposes no withholding on dividends paid to non-residents; UK residents taxed on foreign dividends at dividend rates with Foreign Tax Credit Relief for foreign withholding.

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