Diversified Energy Share Discussion Threads

[king suarez] 05/6/2023 15:58

It seems to be a problem with Banks, as opposed to the other broker sites. I was with Lloyds and they could not process/administer withholding tax correctly for US/Canadian shares either, so I switched platforms.

[laurence llewelyn binliner] 05/6/2023 15:48

#Howard Moreton, thanks for coming back here although with disappointing results, I had hoped the W8 would make the necessary change automatic..

Could I further ask if you hold your DEC shares in a Smart Investor trading account, ISA, or SIPP and did any of them come in tax free of -15%..? as they are supposed to..?

[howardmorton] 05/6/2023 15:40

marksp2011

What is clear to me is that other platforms (e.g. HL and II) can deal with this perfectly satisfactorily. It is barely credible that such a straightforward matter cannot be handled correctly by an organisation the size of Barclays.

[marksp2011] 05/6/2023 15:12

LLB/HowardMorton

Guys,

I think your problem is that Barclays don't seem to have a use case in their software that allows for US Witholding tax on a non-US stock. I can't think of another organisation that flows through US tax in this manner. DEC isn't in the international part of the LSE

[howardmorton] 05/6/2023 14:47

Laurence Llewelyn Binliner

All dividends received since September of 2022 have been subject to 30% withholding tax. I made a formal complaint without success.

I very much doubt if you will receive your dividends at the lower 15% rate of withholding tax. I received a letter from Barclays Smart Investor (on May 30) which contains the following:

"As confirmed in our call, the tax on the dividend could not be processed automatically at 15%. Regrettably, this had to be processed at 30%, adhering to our processes. Our administrators have confirmed that on the Smart Investor platform this Corporate Action tax setting is 30%, and there is no requirements for UK instruments. This stock is out of the scope of the active W-8BEN that is held on file, as this form is for foreign stock held on the Nasdaq or NYSE markets."

This is clear. It is clear that the existence of a valid W-8BEN has no effect on the rate of withholding tax on dividends from Diversified Energy Company and that Barclays Smart Investor intends to continue to deduct withholding tax at 30% instead of the tax treaty rate of 15%. I intend to pursue this issue with the ombudsman.

[t 34] 05/6/2023 09:26

How currency election works in divi payment ? There is the form to fill up ? ( downloadable from their website , but it looks like it is for company holding or joint holding,power of attorney ).

[cassini] 03/6/2023 12:52

As the saying goes, the solution to low prices is low prices.

[croasdalelfc] 03/6/2023 11:27

Signs that US gas producers are reducing new drills and production will cease to grow at the rates seen in the last two years. Decline is possible in 6 months or so - majorly tightening the S/D ratio and perhaps leading to NG prices above $3 again.hTTps://twitter.com/celsiusenergyfm/status/1664726902123253761?s=46&t=6X1g83YbY4t-D9n0LuuFng

[laurence llewelyn binliner] 03/6/2023 10:38

#HowardMoreton, did this happen to you on the last dividend payout..? for some reason mine came in at -27%..? not -30%

Did you also notice the dividend was retracted and re-credited at a different (worse) FX..?

After an hour on the phone to the corporate actions dept recently pushing this and escalating it with seniors, I was assured that with a W8-BEN in place (now submitted and showing as active) this is now automatic and we should only be deducted the 15% WHT, however the guy was not able to forward me any confirmation of the same, so I am waiting to find out the result of this on 30th..

Have you had comms to the contrary..?

[howardmorton] 03/6/2023 10:12

Barclays Smart Investor deduct wthhholding tax at 30% despite a W-8BEN being in place. I am making a formal complaint to the ombudsman.

[wllmherk] 02/6/2023 23:40

@Mr SMC, did you complete a W8-BEN for the ISA?

wllm

[mr smc] 02/6/2023 21:02

I have DEC in both and ISA and SIPP with HLSIPP divi is paid in full ISA has the 15% WHT

[lab305] 02/6/2023 20:49

Weaver CASSINI is right . Full dividend paid in sipp. Bad brokers take tax but how they have not been sued I don't know. We have covered this subject countless times and changing brokers is the solution.

[cassini] 02/6/2023 16:39

Weaver,

There are bilateral agreements between the US and UK about withholding tax and pensions so it's not true to say the US don't care that it's going to a UK pension.

Also, I'm with II and have a SIPP with them and I can guarantee you I pay 0% withholding tax.

You don't even need a valid W8-BEN form if you hold DEC in a SIPP.

If I were you I'd (a) check your figures (b) check your UK tax status (c) contact II if it's not (a) or (b).

[bluemango] 02/6/2023 16:18

A quick Google search came up with this statement from AJ Bell. And I know that HL don't deduct any withholding tax from US dividends when held in a SIPP.

"When in a SIPP, US investments are automatically exempt from withholding tax and Canadian investments automatically benefit from a reduced withholding tax"

This discussion comes up here time after time; if the difference is significant enough I'd suggest changing broker to either of the above two.

[weaverbeever] 02/6/2023 16:12

Do you not still pay the US tax? The US don't care that its in your pension. I'm with II. In sipp. I pay the 15% US tax

[fordtin] 02/6/2023 15:46

Would've given 1knocker's post a thumbs up, but heeded Skinny's warning 😁

[1knocker] 02/6/2023 14:10

At the risk of spooking the market, it would be gratifying to end the week over 90.

If I was sitting on the sidelines contemplating purchasing, I would be thinking to myself that if I let a sub 100 entry price pass me by, it might be a long wait (without dividends) before that opportunity comes around again.

[cassini] 02/6/2023 12:00

If you're asking why is there even this tax in the first place, it's because it's considered to be a US company for tax purposes even though it was floated on the FTSE. Foreign countries often withhold tax on dividends i.e. it is like an income tax deducted at source. There are bilateral agreements to reduce this, see bluemango's post.

[bluemango] 02/6/2023 11:08

#4909

Short answer is, zero withholding tax if held in a SIPP, otherwise 15% if you complete a W8-BEN.

Anything other than this, change broker!

[k4r] 02/6/2023 11:04

Answers in the header, and in the various replies when it came up before.

[oneillshaun] 02/6/2023 10:56

i know this has come up before but the 30% with holding tax on DEC dividends why is this?

Thanks

[bluemango] 02/6/2023 08:54

New Cenkos broker note gives target price 153p for DEC.

They point to the c17% yield, the combined 270k of director buys, and suggest this is an excellent entry point with DEC 'trading at a substantial discount to its peers, in what is already an undervalued sector'