Cash Accounts: Does a cash account require completion of a W8 form?
If you are a non-US person or entity, Interactive Brokers is required to have a valid form W8 certifying your country of tax residence at the time of application. You may update your W8 form at any time in Account Management.
Tax Reporting: When will I receive my 1099 forms?
By February 1, 2010, your 1099 forms will be available for the preceding calendar year. We often need to amend and re-issue 1099 Forms as additional information becomes available to us. If we do amend your Form 1099, you will receive email notification that there has been a change. We strongly recommend that you periodically review your forms before finalizing your tax return filing.
Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.
Tax Reporting: Can I specify cost basis for positions transferred to my IB account?
Yes. IB’s Position Transfer Basis allows you to enter a cost basis to a specific ACATS or ATON transfer date. Log in to Account Management with your IB username and password, select Report Management, then click Position Transfer Basis.
Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.
UK Persons and Entities: Considering Forex (spot) trading is not regulated do I have to pay capital gains tax?
Yes.
Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.
UK Persons and Entities: What happens if I move from the UK to another country?
IB customers are expected to notify us promptly of any changes to particulars including, but not limited to, address, residency, net worth. To update your account information, log into Account Management, access Account Administration and click on Account Information. If you update your address or residency, you must also resubmit your Form W-8.
Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.
UK Persons and Entities: To offset stamp duty I would like to trade CFDs. I noticed on your website you offer CFDs, is that correct?
Yes, we offer CFDs only for select Australian regulated products. We do not offer non-regulated CFDs.
Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.
UK Persons and Entities: How do I access my tax forms?
Your tax forms including Form 1042-S, Annual Activity Statement and Dividend Statement, are available electronically. Log in to Account Management with your IB username and password and select Tax Forms from the Report Management menu. Please review the information on your forms.
Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.
UK Persons and Entities: As a UK resident (and/or non-domiciled), for tax purposes solely, may I open an account with IB US directly?
No. Residents of the UK, EU countries and other select countries (i.e., Switzerland) may only open an account with Interactive Brokers (UK) Limited, irrespective of where you are domiciled. For your reference, Interactive Brokers (UK) Limited acts as an arranger for Interactive Brokers LLC. Interactive Brokers LLC holds clients funds and assets.
Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.
UK Persons and Entities: How do I retain a copy of my signed W-8 after I complete and sign the form?
As you complete Form W-8, you have the option to print a copy for your records.
Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.
UK Persons and Entities: If I complete Form W-8 may I choose to pay capital gain taxes in the UK or anywhere else outside of the US?
No. Form W-8 certifies your tax status for US withholding taxes only. When you complete Form W-8 you are required to certify your country of tax residence and to establish whether you qualify for a reduced rate of withholding on your account. The US does not tax short-term or long-term capital gains for nonresidents, therefore there is no withholding on capital gains.
IB withholds on dividends including qualified interest income (known as interest-related dividends) and short-term capital gain distributions from mutual funds. The withholding rate may be reduced by an applicable tax treaty. Stamp duty tax will be collected for all London Stock Exchange shares purchased in real-time.
Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.
