Hi Philbie
Your tax liability will depend on whether HMRC class you as a "trader" or "investor". As a trader you will be subject to Income Tax, as an investor to Capital Gains Tax.
You are allowed to make upto £9,600 in Capital Gains this tax year without being subject to Capital Gains Tax, and as ns100 has said, any gains above that are subject to CGT at 18% - so for most folk it is generally preferrable to have "investor" status.
Your idea of "trader" is not the same as HMRC's idea of a "trader"
HMRC will look for "badges of trade" to determine which category you fall into and there are some very useful guides on the HMRC website:
Trade: badges of trade: contents
Trade: badges of trade: income producing assets
Quote:
"Normally transactions by individuals and companies in financial assets, such as shares, options and futures, do not amount to trading for tax purposes. Shares are generally held for investment, either to gain from income or capital growth. Short-term transactions, which cannot be classed as investments, usually fall short of trading, being in a class of transaction analogous to gambling or speculation. If you have a case of this kind please refer to
BIM65701"
Obviously everyone's circumstances are very different and if you are in any doubt of your status or how best to manage your taxes you should seek advice from an accountant.
Oh, and you are correct, spreadbetting is not currently subject to either income or capital gains tax at this time.
Hope that helps.
timetotrade
timetotrade.co.uk