M any investors seem to be confused about whether you can hold foreign shares in ISAs. But shares listed on the New York Stock Exchange, NASDAQ, German companies listed on the DAX, and shares traded on the other big markets around the world are all eligible.

The same rule holds for corporate bonds issued by overseas companies. New country-specific ETFs are being launched all the time.

The only stipulation is that such a fund must be recognised by the Financial Services authority to qualify for holding in an ISA. Anything you or I need or should invest in will qualify.

Your particular broker may not enable you to buy or sell overseas shares on any or all major stock exchanges, even if you are legally allowed to hold them in your ISA.

Or you may need to fill in forms to do so. For instance, all the brokers I use insist I fill in a W-8BEN form to trade US stocks. Buying and holding overseas shares exposes you to currency risk. Holding overseas shares exposes you to tax complications, even in an ISA.

The key takeaway is usually you can avoid being taxed twice if you find and fill in the correct form. Brokers usually charge you more to buy and sell overseas shares — even shares listed on very liquid markets like the NYSE. The big restriction for UK private investors looking to invest in shares in an ISA remains the ban on companies that trade on the AIM market. This ban holds despite lobbying that the restriction is no longer valid, given the changes to capital gains tax treatment of AIM shares — and the fact that you can hold AIM shares in a Self-Invested Personal Pension.

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Type your email and press submit:. I have just started reseaching into passive investing for my retirement fund.

This website is a great resource especially since most books are US centric. The one thing I am confused about is if you open an ISA with Interactive Investor for example does that mean that you would be unable to invest in funds through other companies, such as the Vanguard indexs available through alliance.

The Help to Buy Isa is launching on December 1 | This is Money

Are you restricted to using one fund manager or online broker? Only confused about one thing?

Basically, you can only put money into one cash ISA and one stocks and shares ISA in any particular year. Next year , you could choose to invest with a different ISA provider or platform, or you could use your new annual allowance to top up existing ISAs. There is no limit on how many different ISAs you can hold over time. I will say that the US tax system is an absolute nightmare and any sane person should avoid anything that results in having to try and reclaim witholding tax from the IRS.

It is perverse that the ban on AIM stocks in an ISA remains.

US & International Share Dealing – TD Direct Investing

On the other hand one would have thought the riskiness of AIM shares should also result in deeper capital losses which would offset those gains. Totally agree about AIM shares. Does anyone have a suggestion which broker to use for investing US shares within an ISA? Notify me of followup comments via e-mail. Plan to invest as shares fall. Monevator is a place for my thoughts on money and investing. Please read my disclaimer.

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Buying Foreign Shares | The Motley Fool UK

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Full disclaimer and privacy policy. This site uses cookies. Foreign shares in an ISA by The Investor on August 25, The answer is simple: Investing in foreign shares There are a few other complications to be aware of when investing in overseas shares in an ISA.

Broker discretion Your particular broker may not enable you to buy or sell overseas shares on any or all major stock exchanges, even if you are legally allowed to hold them in your ISA. Currency risk Buying and holding overseas shares exposes you to currency risk. Higher dealing costs, but no stamp duty Brokers usually charge you more to buy and sell overseas shares — even shares listed on very liquid markets like the NYSE. Have ISA, will travel The big restriction for UK private investors looking to invest in shares in an ISA remains the ban on companies that trade on the AIM market.

But as for buying and holding foreign shares in an ISA, the world is your oyster!

Isa tips for 10 shares for a £10, annual income | Money Observer

You might also like Watch out for withholding tax on your dividends ETFs and the peculiar effects of withholding tax Currency risk Tax efficient investing in the UK or what order to put things into an ISA or…. Receive my articles for free in your inbox. Type your email and press submit: Hi Stuart, See http: Hi Stuart, Only confused about one thing? The Latest Articles Weekend reading: The value versus growth battle continues Dividends for the long run Investing for beginners: The global stock market Weekend reading: May be not Getting older?

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