OandA Brokers - UK Tax Treatment

SimonK · Jun 23, 2006

Hi all,

From the feedback I've read, OandA seem to be the best FX brokers from the point of price transparency and fairness.

Can anyone tell me if profits (sounding hopeful here!) made with OandA are taxable under UK law.

Is trading through OandA counted as spreadbetting or would I have to pay capital gains tax?

Thanks

Simon

jiggly · Jun 24, 2006

I would also like to know the answer to this question,

I agree with the comments above about O & A, very good.

cheers

foolonthehill · Jun 24, 2006

I've have been with OandA for 3 years now and they have been a very professional outfit even when they have made mistakes.

Fx trading with OandA is fully taxable on all profits if those profits are being fed into a UK bank account and you are a UK citizen. This is NOT spreadbetting and thus does not come under the umbrella of gambling law.

All the best

Foolonthehill

neil · Jun 24, 2006

taxman cometh

foolonthehill said:
I've have been with OandA for 3 years now and they have been a very professional outfit even when they have made mistakes.

Fx trading with OandA is fully taxable on all profits if those profits are being fed into a UK bank account and you are a UK citizen. This is NOT spreadbetting and thus does not come under the umbrella of gambling law.

All the best

Foolonthehill

Agreed - you pay tax on your earnings from Oanda as cited above by Foolonthehill.

SimonK · Jun 24, 2006

Cheers for that.

S.

tradewinds · Jun 25, 2006

SimonK said:
Cheers for that.

S.

What happens if you have a UK passport, and have lived in another country(asia) for more than six months and have a bank account in that country?

SimonK · Jun 25, 2006

You probably need to consult a tax specialist. It all depends where you are "resident" for tax. I think you have to be out of the UK for 180 days not to pay UK tax.

roguetrader · Jun 25, 2006

SimonK said:
You probably need to consult a tax specialist. It all depends where you are "resident" for tax. I think you have to be out of the UK for 180 days not to pay UK tax.

If you are a UK taxpayer, you would have to leave the UK for one tax year, that is the requirement for non-resident status, subsequent to that you cannot be in the UK for more than 90 days in any one year to maintain non resident status

What happens if you have a UK passport, and have lived in another country(asia) for more than six months and have a bank account in that country?

Nice part of the world

SimonK · Aug 4, 2006

Surely this can be treated as investment income, in which case you would be liable for capital gains tax, not income tax. Then your first £7500 of profit would be tax free.

JP1966 · Aug 5, 2006

If the revenue deem you are a full time or pro trader then you have no CGT exemption and must pay income tax on earnings.

It is a grey area but if you are say dealing once a day then they are likely to not allow you CGT exemption.

I have been advised the most efficent tax way is via a limited company and so that is what I trade via.

SimonK · Aug 5, 2006

Yes, a UK Ltd would be one route to go,

I wonder if anyone knows whether an offshore trust could be setup. I guess we are in the realm of tax experts for that.

ns1000 · Aug 8, 2006

SimonK said:
Yes, a UK Ltd would be one route to go,

I wonder if anyone knows whether an offshore trust could be setup. I guess we are in the realm of tax experts for that.

Not sure about offshore trusts, but if trading through a limited company, you may be better of setting one up in a lower tax jurisdiction. BVI would be one option.

OandA Brokers - UK Tax Treatment

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