With a GIA, you pay Income Tax on any income (like dividends) you receive, and Capital Gains Tax on any realised gains made if you sell some or all of your shares.

When you hold an investment in US company stocks, there is a withholding tax of 15% applied to dividends at source in the US, before they are paid.

In the UK, there is a £2,000 annual Income Tax allowance on dividends and a £12,300 yearly Capital Gains Tax allowance. The amount of tax you pay if you exceed these thresholds will depend on your personal tax band, and is subject to change.

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