UK investors in American companies need take no action even as US politicians argue over the taxation of dividends.

If no deal is reached, US investors could face taxes of up to 43 per cent on dividends compared to 15 per cent at present, and hundreds of companies are bringing forward dividend payments.

But Kevin Phillips, international tax partner at Baker Tilly, said dividends to UK-based shareholders who have completed a W-8BEN form will still be taxed at 15 per cent. “To change this would require a protocol to the UK/US tax treaty to be negotiated, which is certainly not something I am expecting or have heard talked about,” he said.

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