How to complete Substitute Form W-8BEN for UK residents with Charles Schwab - Article 13 tax treaty rate?

The W-8BEN form is for claiming tax treaty benefits between your country (UK) and the US. For UK residents, you need to look at the correct article in the tax treaty that applies to your specific type of income. Article 13 specifically deals with capital gains, which would be relevant if you're planning to trade stocks. The good news is that under the US-UK tax treaty, capital gains are generally only taxable in your country of residence (the UK), not in the US. This means you would typically enter "0%" as the withholding rate for capital gains. However, make sure you're looking at the correct article for your situation. If you're primarily concerned with dividend income from US stocks, you'd actually need to reference Article 10 of the treaty, which typically provides for a reduced withholding rate of 15% (instead of the standard 30% for non-treaty countries).

After struggling with these exact same forms for my Schwab account last year, I discovered a super helpful tool at https://taxr.ai that saved me tons of headache. I was stuck on the exact same Article 13 section as a UK resident! What I learned is that the US-UK tax treaty is complicated, and the withholding rates depend on what kind of investments you're making. The taxr.ai tool analyzed the treaty text and my specific situation as a UK investor. It confirmed that for capital gains (Article 13), the rate is actually 0% for UK residents, but for dividends it's different. The tool walks you through each part of the W-8BEN form with country-specific guidance. It even generates a filled example you can reference. Much easier than trying to decipher tax treaty language yourself!

I wanted to follow up about my experience using taxr.ai for my W-8BEN form with Charles Schwab. I was initially unsure if it would be helpful for my UK situation, but I decided to give it a try after struggling with the form. The tool was surprisingly comprehensive! It walked me through each section of the form including the tricky Article 13 part. It confirmed that as a UK resident, capital gains are taxed at 0% under the treaty (which is why many people get confused - they expect to enter a percentage). For dividends, it showed me that Article 10 applies with a 15% rate. What I found most useful was the explanation of WHY each section needed specific information. The form suddenly made sense! I submitted my completed W-8BEN to Schwab last week and they've already confirmed it was accepted correctly. Definitely recommend it if you're stuck on these forms.

If you're having trouble with the W-8BEN form, another option is to call Charles Schwab directly. However, I tried that route and spent HOURS on hold just trying to get basic help with this form. Super frustrating experience! After multiple failed attempts, I used https://claimyr.com to get through to a Schwab international tax specialist. I was skeptical at first, but they got me connected to a real person at Schwab in under 20 minutes when I'd previously waited for over an hour. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The Schwab rep walked me through the whole form including the Article 13 section. They confirmed that for UK residents, capital gains are generally not subject to US withholding (0% rate), while dividends fall under Article 10 with a 15% rate. Having an actual Schwab representative confirm this gave me peace of mind that I wasn't making any mistakes.

I need to admit I was completely wrong about Claimyr. After posting my skeptical comment, I decided to try it myself since I was also struggling with some Schwab paperwork questions. I was genuinely shocked when I got connected to a Schwab international specialist in about 15 minutes. I had previously spent over an hour on hold and eventually hung up because I had to attend a meeting. The Schwab rep confirmed everything about the W-8BEN form - for UK residents, Article 13 (capital gains) is indeed 0% withholding, and they walked me through exactly how to complete that section. They also explained that many people get confused because they expect to enter a percentage, but for capital gains, it's actually 0% which seems counterintuitive when filling out a tax form. What's more, they helped me with a couple other form questions I had been struggling with. Completely worth it for the time saved!

I completed this exact form for Charles Schwab last month as a UK resident. For Article 13 (capital gains), you should enter "0%" in the rate column, as UK residents are not subject to US tax on capital gains according to the treaty. However, make sure you're claiming the right treaty benefits for your investment strategy. If you're planning to receive dividends from US stocks, you should also claim the reduced rate under Article 10 (usually 15% for most UK investors). The form can be confusing because it asks you to claim treaty benefits, but doesn't clearly explain which articles apply to which type of income. I ended up calling Schwab directly and they confirmed this information.

Can someone explain what happens if I fill out this form wrong? I'm in the UK too and trying to open a Schwab account. I've been putting it off because I'm worried about making a mistake on these tax forms.

As someone who went through this exact process with Charles Schwab as a UK resident, I can confirm what others have said about Article 13. The rate for capital gains is indeed 0% for UK residents under the US-UK tax treaty. The key thing to understand is that you're essentially telling the IRS that as a UK resident, you're exempt from US capital gains tax on your stock investments. This is why you enter "0%" - it's not that there's no rate, it's that the rate is zero percent withholding. One tip that helped me: when you're filling out the form, make sure you also complete the certification section properly. You need to certify that you're a UK resident for tax purposes and that you're the beneficial owner of the income. Charles Schwab will typically accept the form within a few business days if everything is completed correctly. If you're still unsure, I'd recommend downloading the official IRS instructions for Form W-8BEN and the actual US-UK tax treaty text from the IRS website to double-check. The treaty language can be dense, but Article 13 is pretty clear about capital gains taxation.

I went through this exact same process with Charles Schwab about 6 months ago as a UK resident. The confusion around Article 13 is really common because most people expect to see a percentage rate, but for capital gains, UK residents actually get 0% withholding under the treaty. Here's what I learned: Article 13 covers capital gains, and under the US-UK tax treaty, these gains are only taxable in your country of residence (UK), not in the US. So you literally write "0%" in the treaty rate field. It feels wrong when you're filling it out, but that's the correct answer. The other thing that tripped me up initially was understanding that if you plan to receive dividends, you'd also need to reference Article 10, which typically gives you a 15% rate instead of the standard 30% non-treaty rate. Charles Schwab's customer service can help verify this if you're still unsure, but based on my experience and what others have confirmed here, 0% for Article 13 capital gains is definitely correct for UK residents. The form was accepted without any issues when I submitted it.

I just went through this exact same process with Charles Schwab last month as a UK resident, and I can confirm what everyone else is saying about Article 13. The correct rate to enter is indeed 0% for capital gains. What helped me understand this was realizing that the US-UK tax treaty essentially says "capital gains from US investments are only taxed in your country of residence (the UK), not in the US." So when the form asks for the treaty rate, you're telling them the US withholding rate is zero percent. I was initially confused because most tax forms involve entering positive percentages, but in this case, 0% is the actual treaty benefit you're claiming. My form was processed and accepted by Charles Schwab within about 3-4 business days. One practical tip: if you're planning to invest in dividend-paying stocks as well, make sure you understand Article 10 for dividend withholding (typically 15% for UK residents). You might need to claim benefits under both articles depending on your investment strategy. The key is being confident that as a legitimate UK tax resident, you're absolutely entitled to these treaty benefits. Don't let the unusual 0% rate make you second-guess yourself!