Is SpreadBetting Profits Taxable?

This is a discussion on Is SpreadBetting Profits Taxable? within the General Trading Chat forums, part of the Reception category; i've been told its not taxable if it's not your main source of income. so another question, if it is ...

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Old Feb 6, 2009, 10:00am   #8
 
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i've been told its not taxable if it's not your main source of income.

so another question, if it is your main source of income, how do you get around this?

part time job?
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Old Feb 6, 2009, 10:09am   #9
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The point of gambling is that its outcome is a matter of chance rather than skill. The assumption is therefore that no-one earns an income from it. There are exceptions but the default position of the HMRC is that bets are not subject to tax. An excpetion would generally have to be a proactive measure (i.e the professional gambler informs HMRC of his status) rather than reactive (HMRC telling you that you are). You don't need to prove it's not your main income as its assumed that it isn't.
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Old Feb 6, 2009, 11:09am   #10
 
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The point of gambling is that its outcome is a matter of chance rather than skill. The assumption is therefore that no-one earns an income from it. There are exceptions but the default position of the HMRC is that bets are not subject to tax. An excpetion would generally have to be a proactive measure (i.e the professional gambler informs HMRC of his status) rather than reactive (HMRC telling you that you are). You don't need to prove it's not your main income as its assumed that it isn't.
Due to the social stigma associated with gambling I get the impression that the HMRC wouldn't want to overtly state that there is such a thing as a 'professional' gambler. This is now why I am convinced they will never consider any form of gambling as taxable.
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Old Feb 6, 2009, 11:17am   #11
 
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The point of gambling is that its outcome is a matter of chance rather than skill. The assumption is therefore that no-one earns an income from it. There are exceptions but the default position of the HMRC is that bets are not subject to tax. An excpetion would generally have to be a proactive measure (i.e the professional gambler informs HMRC of his status) rather than reactive (HMRC telling you that you are). You don't need to prove it's not your main income as its assumed that it isn't.

but if you simply tell HMRC that you dont have any income, they would investigate, and if this is your only income, what do you do?
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Old Feb 6, 2009, 12:26pm   #12
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but if you simply tell HMRC that you dont have any income, they would investigate, and if this is your only income, what do you do?
You would almost certainnly not have any other income to declare - dividends, income from savings etc. I really doubt they would investigate.

Assuming you have spreadbet in a previous tax year and not paid tax, they are unlikely to be able to claim that it has changed from gambling to income. If you gamble as a leisure activity it continues to be a leisure activity even if you have no other paid employment.


Yes there are all sorts of technical permutations which potentially might be it almost possible for spread betting to be classed as an income, but they are highly unlikely to come about.
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Old Feb 6, 2009, 12:42pm   #13
 
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You would almost certainnly not have any other income to declare - dividends, income from savings etc. I really doubt they would investigate.

Assuming you have spreadbet in a previous tax year and not paid tax, they are unlikely to be able to claim that it has changed from gambling to income. If you gamble as a leisure activity it continues to be a leisure activity even if you have no other paid employment.


Yes there are all sorts of technical permutations which potentially might be it almost possible for spread betting to be classed as an income, but they are highly unlikely to come about.


well i guess it's a case of wait and see then.

thanks
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