Form W-8BEN
IRS, Certificate of Foreign Status (Individuals)
The certificate a non-US individual gives a US payer to confirm foreign status and claim treaty-reduced withholding on US income.
What is Form W-8BEN?
Form W-8BEN is handed to the bank, broker or other payer that withholds US tax. It is not filed with the IRS. It certifies that the individual is not a US person and, where relevant, claims the reduced withholding rate under the US-UK treaty.
Claiming the treaty rate at source
Without a valid form, a US payer applies the default rate of 30% to US-source dividends paid to a foreign person.
A UK resident who completes the treaty section can reduce that on portfolio dividends to 15%. The form identifies the beneficial owner, gives a UK address and, where needed, a US or foreign taxpayer number, and names the treaty article and rate being claimed.
The form is generally valid until the end of the third calendar year after signing, unless circumstances change first. A change that makes the information incorrect, such as a move to the US, requires a fresh form. Brokers commonly prompt for renewal, and an expired form usually means withholding reverts to the default rate. Once the year has closed, excess tax withheld at source is generally recovered only by filing a Form 1040-NR.
A US person must never sign Form W-8BEN. That includes US citizens living in the UK, dual nationals and green card holders, even those who have never lived in America. They give the payer a Form W-9 instead. Signing a W-8BEN as a US person is a false certification, and it can also lead a UK bank to treat accounts as non-US when they are reportable under FATCA.
At a glance
- The payer or withholding agent, not the IRS
- Given to
- 30% on US dividends to foreign persons
- Default withholding
- 15%
- Treaty rate on portfolio dividends
- Until the end of the third calendar year after signing
- Valid for
Figures are for the tax year stated in the official instructions linked below.
How we handle it
- International Tax
US reporting for owners of UK companies and partnerships, and for UK groups with US entities, including Forms 5471, 8858, 8865 and 5472.
- Treaty Relief
Claims under the US/UK income tax treaty, with Form 8833 disclosure, residence tie-breaker analysis and reduced withholding on US income.
- Individual Tax Returns
US federal returns for Americans living in the UK and British nationals with US income, prepared with the UK figures in view.
Where people go wrong
The Form W-8BEN errors we correct most often.
Who files it
- UK residents with US brokerage accounts receiving US dividends
- British individuals receiving US royalties or freelance income from US clients
- Nonresidents opening accounts with US banks, platforms or fund managers
- Non-US spouses of Americans who hold US investments in their own name
01
A US citizen or green card holder signing the form instead of a W-9
02
Leaving the treaty section blank and suffering withholding at the default rate
03
Missing a renewal request so the form expires and withholding increases
04
Failing to replace the form after moving to the US
Why US UK Tax Returns
Every form is prepared against the official instructions, and every position on it is one we can point to in the Code, the treaty or HMRC's guidance.
One File
US and UK returns prepared in the same engagement and reconciled line by line.
Primary Sources
Every position traced to the Code, the treaty, IRS instructions or HMRC guidance.
Scope First
Returns, forms, years and fee agreed in writing before work begins.
The Same People
The team that files this year carries the elections and credits into the next.
Questions we are asked
I am a dual US and UK citizen. My broker sent me a W-8BEN. Should I sign it?
No. A US citizen is a US person for tax purposes regardless of other citizenship or residence, and must give the payer a Form W-9 instead. Signing a W-8BEN would falsely certify foreign status. If the broker's systems only offer the W-8BEN because of a UK address, the account details need correcting before any form is signed.
Do I send the W-8BEN to the IRS?
No. It goes to the payer or withholding agent, usually the broker, bank or company paying the income. They keep it on file and use it to decide how much US tax to withhold. The IRS only sees it if it asks the payer for it. Keep a copy for your own records.
Too much tax was withheld on my US dividends. Can I get it back?
If the payer withheld at 30% because no valid form was on file, the excess over the treaty rate can generally be recovered by filing Form 1040-NR for the year. Some payers can also correct the withholding within the same calendar year. After the year ends, a return is usually the only route.
Primary sources
What this page says is drawn from the official material below. Read it yourself; we would rather be checked than trusted.
Last reviewed
Also in Withholding & Tax IDs
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