Articles on: Emma Invest 🇬🇧

If I invest in US stocks with Emma, do I need to pay tax?

You will need to pay Income Tax on any income you receive, for example, dividends, and Capital Gains Tax on any gains made if you sell some or all of your shares.

In addition, there is a withholding tax of 15% applied to dividends at source in the US, before they are paid out to you.

In the UK, there is a £1,000 annual Income Tax allowance on dividends and a £6,000 yearly Capital Gains Tax allowance. The amount of tax you will need to pay will depend on your personal tax band, and your personal circumstances.

Emma cannot provide advice on your personal tax situation or offer specific tax recommendations. Tax treatment depends on your individual circumstances and may change over time. You are responsible for understanding and complying with all relevant tax obligations in the UK and any other jurisdictions that may apply. If you are uncertain about how these rules affect you—or if you need assistance determining your tax liability on investment income or gains—we strongly recommend consulting a qualified tax professional or financial adviser who can provide guidance based on your specific circumstances.

If you have any further questions, reach out to us here ✍️

Updated on: 16/09/2025

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