Make Your SB PROFITS Tax Deductable!

£10kLoser

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If you can genuinely make a profit spread betting and have another taxable income, here is a way to save tax!

First, you need to open an account with a 'normal' broker (I use FXPro.com) and then double your spread bet stake. You hedge this by placing half the bet (pounds per pip) in the opposite direction with the broker.

This means that your winnings are exactly the same as before (twice as much but minus the broker loss) but you LOSE exactly the same as your winnings through the normal broker.

So, you can then claim all your broker losses as tax deductable against your normal job earnings.
 
Might work for Malta mate but wont work in the U.K. Different rules for different lands, the U.K I know about as I have worked for myself (self employed) as well as being paid and director of my company and a manager of another business that subcontracted to myself and other business. All 3 of these where not tax deductable against any loss together as a whole and where classed solely as seperate enities and therefore not able to offset any losses from one to another.

U.K tax laws are as such that it is classed as a seperate entity, therefore being unable to claim back losses from that business venture to offset losses against another.


Nice thought though, but wont work.
 
Added to that, if you lose you've got a double size non-tax deductible loss, and a taxable profit.

Not for me.
 
Added to that, if you lose you've got a double size non-tax deductible loss, and a taxable profit.

Not for me.

The assumtion is that you can make a profit trading, otherwise this would simply add to you losses as you state. I started off by saying that you must be able to make a profit!

To trade assumimg that you make an overall loss is pretty sad and you clearly wouldn't be looking for a way to save tax...
 
The assumtion is that you can make a profit trading, otherwise this would simply add to you losses as you state. I started off by saying that you must be able to make a profit!

To trade assumimg that you make an overall loss is pretty sad and you clearly wouldn't be looking for a way to save tax...

Then why not just do double or triple the size and forget your tax hedge? Or more realistically, just trade an extra 18% so you can use the extra cash to cover what you would have been able to offset.
 
Because we are always trading at what we think is an acceptable stake.

You are basically saying why not always trade with a higher stake. So then we trade with a higher stake and you say why not trade even higher...

The whole point with hedging is that our potential loss never increases, unlike increasing our stake where our risk increases proportionately.
 
Because we are always trading at what we think is an acceptable stake.

You are basically saying why not always trade with a higher stake. So then we trade with a higher stake and you say why not trade even higher...

The whole point with hedging is that our potential loss never increases, unlike increasing our stake where our risk increases proportionately.

I agree - but the fact that you're talking about proportionate risk is at odds with your earlier statement that 'you have to be able to make a profit'. What I'm saying is that if you're so sure of making a profit, then why not gear up? Fact is, no-one can be that sure, so I stand by my earlier comment that you'd be risking a double SB loss, partially offset by a taxable gain.

Add that to the fact that your method triples transaction costs and ties up three times as much capital, I don't think it stacks up.
 
If you can genuinely make a profit spread betting and have another taxable income, here is a way to save tax!

First, you need to open an account with a 'normal' broker (I use FXPro.com) and then double your spread bet stake. You hedge this by placing half the bet (pounds per pip) in the opposite direction with the broker.

This means that your winnings are exactly the same as before (twice as much but minus the broker loss) but you LOSE exactly the same as your winnings through the normal broker.

So, you can then claim all your broker losses as tax deductable against your normal job earnings.

iF YOU KNOW HOW TO TRADE SUCCESSFULLY, WHY WIOULD YOU GO TO ALL THIS BOTHER! LEARN HOIW TO TRADE AND YOU CAN FORGET ABOUT SUCH HAIR BRAINED SCHEMES :)
 
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Good lord, give it a rest guys, we already decided that it wouldn't work ages ago (unless, actually you formed a limited Company to do it). An accountant told me it would work, then.

I'll tell you why I would go to the bother. Because after several years not having to pay any tax at all (living off spread betting), I now have another income that is taxable and I wanted to see if I could find a way to make that tax free, too! It's bad enough having to put figures in a tax return, never mind actually paying tax...
 
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