isas - tax position on overseas assets

[reynard]

Does anyone know the tax position on overseas assets held in an isa?
Are taxes charged by foreign revenue offices, but reclaimed?

e.g. Certain US/Canadian Income funds for forestry have good income yields and can be bought [Crest settled] like shares. See TimberWest Forestry [TWF.NU] on the Toronto exchange. Their yields would be reduced considerably if they were to be taxed by the US/Canadian revenue offices, making them less tax efficient.

For instance, I've traded US stock outside an ISA and paid 15% on dividends. I think US tax for non-nationals is something 30% on income [I could be wrong].

So what are the tax rules generally for overseas assets in an isa, and is forestry an exception?
I'm all ears !

p.s. I'm making enquiries elsewhere in the meantime.

 

[reynard]

I've made some enquiries and had an answer from a broker ..

"The tax charge on income from overseas assets depends on the originating country. For example the US tax is 30% and the Canadian tax is 15%. These taxes are deducted at source similar to the 10% tax credit on UK dividends. We are not a tax specialist so if you would like definitive answers to your queries your should contact a tax specialist.

If investments are held outside of an ISA an overseas tax of up to15% will count towards your UK income tax bill. With regard to holdings held within an ISA the overseas tax that is charged is deducted at source and therefore cannot be reclaimed. The Canadian 15% tax is the lowest tax you are entitled to pay. However, due to the investments being held in an ISA there will be no further UK income or capital gains tax to pay on the investments held. "

Seems fairly clear.