FCA concerns on Spreadbetting

This is a discussion on FCA concerns on Spreadbetting within the Spread Betting & CFDs forums, part of the Commercial category; I'm done speaking to morons. Don't bother replying because I won't waste any more time on this....

Reply
 
LinkBack Thread Tools Search this Thread
Old Dec 18, 2016, 4:00pm   #31
Joined Jul 2008
I'm done speaking to morons. Don't bother replying because I won't waste any more time on this.
forker is offline   Reply With Quote
Old Dec 18, 2016, 4:50pm   #32
 
OLdNoob's Avatar
Joined Jul 2014
Whilst the definitive answer to this question cannot be given without a full understanding of the facts involved in each case, HM Revenue & Customs are very clear in their guidance manuals that ‘The fact that a taxpayer had a system by which they place their bets or that they are sufficiently successful to earn a living by gambling does not make their activities a trade’ (BIM22017).

It is also stated in HMRC guidance that the basic position is that betting and gambling (including spread betting) do not constitute trading and that in the 1925 case of Graham-v-Green ‘A bet is merely an irrational agreement that one person should pay another person on the happening of an event’ (BIM22015).

However, the HMRC guidance also states that ‘An organised activity to make profits out of the gambling public will normally amount to trading and for this they used an example of a bookmaker’ (BIM22018).

Therefore, there is not a definitive argument between the two treatments and whilst true spread betting is outside the scope of tax, if you are a market maker or have your trades organised in such a way as to not be a mere ‘punter’, it is likely that your trading activities will be seen as taxable.

http://www.accountantsfortraders.co....pread-betting/
OLdNoob is offline   Reply With Quote
Thanks! The following members like this post: timm
Old Dec 18, 2016, 4:52pm   #33
 
OLdNoob's Avatar
Joined Jul 2014
Lets leave it at that you have your interpretation and I have mine, everyone else can make up their own mind.
OLdNoob is offline   Reply With Quote
Old Dec 18, 2016, 11:17pm   #34
Joined Feb 2002
As ever with these threads, lots of strongly held and quite convincing opinion on both sides, but a continuing absence of direct experience in dealing with HMRC on this question.
tomorton is offline   Reply With Quote
Old Dec 19, 2016, 8:16am   #35
tar
 
tar's Avatar
Joined Nov 2006
Quote:
Originally Posted by metrader View Post
Hi highbury

Have you ever heard of anybody paying tax on spread betting winnings?

Thanks

Quote:
Originally Posted by highbury fx View Post
yep.

the key always used to be what you declared as your occupation on the spreadbet application form. if you put down 'trader' or similar then the revenue may have considered it to be your source of income and taxed you regardless of how little you may have won.

I knew of someone about 10 years ago who spreadbet fx for a living and done very very well but paid an estate agency £25k to put him on their books as a salesman so he could declare that on the application form.

I think the key thing here is if you are not spreadbetting profitably or not making a decent wage from spreadbetting you should not put down 'trader' as your occupation. You could create some problems further down the line for yourself.

I don't think spreadbetting profits will be taxed to the mainstream any time soon simply because spreadbet losses will then have to be tax deductible. You don't need me to tell you that more money is lost spreadbetting than won.

Highbury fx is a ceo of a SB company .
tar is offline   Reply With Quote
Old Nov 9, 2017, 1:49pm   #36
Joined Mar 2014
simple play with non uk regulated firm that has respect
jkane is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
Any concerns with Capital Spreads ? Bakuli Brokerages 3 Apr 14, 2011 9:00pm
Any concerns with Capital Spreads ? Bakuli Spread Betting & CFDs 17 Feb 3, 2010 11:40pm
bull trade.com concerns jer123 First Steps 0 Aug 2, 2008 10:55pm

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)