Ah, yes, that’s the word I’m looking for

With respect to this.

Is US OTC stock fungible with London AIM listed? Or even, how fungible is it?

5 thoughts on “Ah, yes, that’s the word I’m looking for”

  1. Ummm… not sure about this, but…

    If I buy a US share on a US exchange- say ATT- then the dividends are subject to US tax.

    There is a form called a W8-BEN that I can submit to claim it back, but many UK brokers won’t handle it, and I’ve a feeling it only enables some, not all, of the tax to be claimed back.

    (I’ve submitted a W8-BEN, but have never got round to doing a tax refund claim. My US holdings are very small, as I bought them just it try to find out if the process actually works.)

    Now, one could go into one’s UK broker and buy an American ADR of a British company, let’s say GSK. There might be tiny tiny differences in price between doing it that way and simply buying GSK on the LSE. But I suspect any benefit from exploiting those differences might be offset by issues around tax on the dividends.

  2. @CJ Nerd: If you’ve paid tax in the US (and you’re domiciled in the UK) you can claim it off your UK tax because of the tax treaty between the two countries. I’ve done that when hit by US withholding tax.

  3. Off topic but classic Murphybollocks. A gem….a summary of the discussion

    Murphy – “organisations that [hold government debt] for regulatory purposes”

    Query – Which institutions need to hold government debt for ‘regulatory reasons’?

    M- Banks….many institutions

    Q – institutional investors…choose to invest in UK Gilts, there is no regulatory requirement for them to do so…your ‘facts’ abut government debt are not really facts at all!

    M – De facto it’s a fact

  4. “@CJ Nerd: If you’ve paid tax in the US (and you’re domiciled in the UK) you can claim it off your UK tax because of the tax treaty between the two countries. I’ve done that when hit by US withholding tax.”

    Oooh, thank you. That’s handy to know. I’ll add it to my notes for tax return time.

  5. In most cases US OTC stock is not fully fungible with UK stock listed on AIM because the company will have two separate registers and in order to sell UK-listed stock in the USA or US-listed stock in the UK the stock would need to be transferred from one register to the other.
    When BT decided to drop its US listing via ADSs, those Americans who wished to retain their shareholdings had to pay cancellation fees and cable charges as a condition in order to receive the BT shares underlying their cancelled ADS.

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