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ANSWER 28th January 2010 Hi Mark, Investment taxation. There are two types of taxation relative to stocks and shares. Three, actually. The third one is SDRT(Stamp Duty Reserve Tax). I almost forgot this one, it is really a duty on purchases. The rate is 0.5%. Doesn't apply to most bonds, ETFs, CFDs. It is a UK (and Ireland) tax so doesnt apply to US, Canada, Australia. The two main taxes, however are CGT (Capital Gaiins Tax) and Income Tax. Hold then, there could be four! IHT (Inheritance Tax). OK, CGT. This is a tax on gains. The current rate is a flat 18% and an individual has a tax free allowance of over £10000 (so husband & wife would each qualify). Capital losses can be offset against gains. Then there is income tax on dividends (and income from bonds). You are liable, as a UK taxpayer, to pay tax on income you receive from anywhere in the world. If you receive dividends from US shares then you need to complete a W8-BEN to make sure you can avail yourself of the double-taxation exemption arrangement. That's it, I think. I won't go into any more detail here but if you need more you are welcome to start the topic on our forum.

TD Waterhouse is a broker so I am not sure what you mean by the question.

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