How to invest from United Kingdom

Taxes on investing in the UK (2026/27 tax year)

The UK tax year runs from 6 April to 5 April. Outside tax-free wrappers, investments are taxed like this:

	Allowance	Basic rate	Higher rate	Additional rate
Capital gains on shares	£3,000 a year	18%	24%	24%
Dividends	£500 a year	10.75%	35.75%	39.35%

• Buying UK shares carries 0.5% stamp duty (stamp duty reserve tax). Most ETFs and foreign shares don’t.
• Gains and dividends above the allowances are reported through Self Assessment; the online deadline is 31 January after the end of the tax year.

Tax-free wrappers: use these first

• Stocks & Shares ISA: invest up to £20,000 a year (shared across all your ISAs) and pay no tax on gains or dividends, ever, with no need to report them.
• SIPP (self-invested personal pension): contributions get tax relief at your income-tax rate; money is locked until pension age.
• Lifetime ISA: for under-40s saving for a first home or retirement, with a government bonus on contributions (and a penalty for other withdrawals).

For most UK investors, the order is simple: fill your ISA (and pension, if it suits you) before investing in a regular, taxable account.

Local tips

• Most UK platforms offer UCITS ETFs listed in London. Whether US-domiciled ETFs are available depends on the platform and current FCA rules, so check before you plan around one.
• Platforms charge in different ways: some a percentage of your portfolio, others a flat monthly fee. A percentage is cheaper for small pots; a flat fee usually wins once your portfolio grows.
• Fill in a W-8BEN form with your platform to get the reduced 15% US withholding tax on US dividends.

This is general information, not tax advice. See gov.uk or a qualified adviser for your situation.

Sources

• interactive investor: UK tax rates and allowances 2026/27
• Morningstar UK: 2026/27 tax timeline