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Old Sep 9, 2009, 1:07pm   #106
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Ok, I got your meaning, SD is the man.
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Old Sep 16, 2009, 1:47pm   #107
 
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Facts about UK tax and spread betting

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Originally Posted by gle101 View Post
In Europe SB is still considered to be gambling, it is not illegal. Yes, I guess, if you solely depend and have a constant income from SB (large income), I think you can be liable for taxation. No use spread betting in that case as you cannot deduct losses.
Totally incorrect for UK. Even if spread betting is your only income and you make good progress it is not taxed and in my opinion will never be. Here is why;

If HMRC decided to tax spread bet profits/winnings they would have to allow losses as a deduction. This would mean every mug punter pound handed over the counter at bookies could be deductable from ones taxes. The loss in revenue for HMRC would be far greater than allowing the odd (and believe me it is the odd one) successful gambler tax free earnings.
Of course the taxman would love to just pick out the winners and charge 'em but even they can't get away with that 'one rule for him and the opposite for another'

By the way: There is a massive advantage with Prospreads but only if you are making consistent profit/progress. If you are then of course your account grows and so does the level you can afford to trade at. Therefore unlimited size of order is essential - other companies cap the size of position.
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Old Sep 16, 2009, 1:59pm   #108
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Quote:
Originally Posted by rj100 View Post
Totally incorrect for UK. Even if spread betting is your only income and you make good progress it is not taxed and in my opinion will never be. Here is why;

If HMRC decided to tax spread bet profits/winnings they would have to allow losses as a deduction. This would mean every mug punter pound handed over the counter at bookies could be deductable from ones taxes. The loss in revenue for HMRC would be far greater than allowing the odd (and believe me it is the odd one) successful gambler tax free earnings.
Of course the taxman would love to just pick out the winners and charge 'em but even they can't get away with that 'one rule for him and the opposite for another'

By the way: There is a massive advantage with Prospreads but only if you are making consistent profit/progress. If you are then of course your account grows and so does the level you can afford to trade at. Therefore unlimited size of order is essential - other companies cap the size of position.
we r not talking about winners , we r talking about if SB is your only income , do u have any proof that it is not taxable ?
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Old Sep 16, 2009, 3:47pm   #109
 
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I believe there is such a thing as a professional gambler. In the case of a professional gambler, you are taxed on your earnings which may even be viewed as income (so you could end up paying income tax, which is quite steep). To qualify as a professional gambler, the gambling should be your sole (or perhaps main) source of income. Most people have other jobs, so they wouldn't qualify I believe . As long as you have another job/business which you can live from the earnings of, you shouldn't ever have to pay tax on your gambling.

But when you get to a size that is large enough for this to matter, you would probably be better off trading than spreadbetting, because the tighter spreads and other benefits may well make up for a large part of the tax, and you wouldn't have the worry of it.

Last edited by Shakone; Sep 16, 2009 at 3:52pm.
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Old Sep 16, 2009, 4:27pm   #110
 
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we r not talking about winners , we r talking about if SB is your only income , do u have any proof that it is not taxable ?
Proof - check IGindex home page (the largest UK spreadbetting co), or in fact any other one. You will note all disclaim the fact that the law can change (of course it can, as can any).
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Old Sep 16, 2009, 4:31pm   #111
 
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Originally Posted by Shakone View Post
I believe there is such a thing as a professional gambler. In the case of a professional gambler, you are taxed on your earnings which may even be viewed as income (so you could end up paying income tax, which is quite steep). To qualify as a professional gambler, the gambling should be your sole (or perhaps main) source of income. Most people have other jobs, so they wouldn't qualify I believe . As long as you have another job/business which you can live from the earnings of, you shouldn't ever have to pay tax on your gambling.

But when you get to a size that is large enough for this to matter, you would probably be better off trading than spreadbetting, because the tighter spreads and other benefits may well make up for a large part of the tax, and you wouldn't have the worry of it.
100% incorrect, sorry. Proffessional or not, it is classed as winnings. The point being that if winnings are taxed then losses may be duducted. The spread betting companies all pay a percentage of profit as betting duty (which of course comes out of the spread profit - so indirectly tax is paid).
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Old Sep 16, 2009, 5:24pm   #112
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Quote:
Originally Posted by rj100 View Post
Proof - check IGindex home page (the largest UK spreadbetting co), or in fact any other one. You will note all disclaim the fact that the law can change (of course it can, as can any).
i know it is not taxable , but what about if it your only source of income do u pay tax on your net profits ? is there any law to clear this more ?
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Old Sep 16, 2009, 7:22pm   #113
 
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i know it is not taxable , but what about if it your only source of income do u pay tax on your net profits ? is there any law to clear this more ?
Makes no diff. still totally tax free (remember I am only quoting this for UK tax purposes)
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Old Sep 16, 2009, 7:48pm   #114
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Originally Posted by rj100 View Post
remember I am only quoting this for UK tax purposes)
yeah ofcourse
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Old Sep 16, 2009, 8:14pm   #115
 
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Makes no diff. still totally tax free (remember I am only quoting this for UK tax purposes)
this has been done to death on other threads.

Think of the lottery, no one is taxed regardless of if you win £10 or £10 million. how you win the £10 million is also irrelevent, all in one go or over the course of several years and smaller winnings.

ITs still gambling and therefore still tax free.

To be taxed as a proffesional gambler you would have to have a taxable income that is connected to your spreadbetting for them to clump the two together.

As an example your a uk poker player who has managed to win a few major tornaments (all tax free at the moment)

you then start to write books or charge for coaching using your poker success as the basis for your high fee.

In theory the tax office could suggest that your winnings are now taxable as they are an integral part of your coaching service/business.
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Old Oct 2, 2009, 11:32pm   #116
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Any news on Spot fx and when it will be available. even a rough idea would be good. only asking as i was told it would be in october - is this true?
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Old Oct 5, 2009, 8:59am   #117
 
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Hello,
do we have to submit returns to HMRC every year if you are only spread betting. My problem is ... If i want a mortgage how do i talk to the bank manager if i donot have anything from HMRC to show him.
is my bank statement enough for banks to give me the loan? Proving my income to authorities is becoming a problem for me though i earn more than UK Average!
Thanks in advance
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Old Oct 5, 2009, 10:58am   #118
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As a trader this type of activity is classed as gambling.
If you wish to apply for a loan or mortage the standard is to do a self cirt of income.
Please note these type of agreements carry higher interest rates and are sometimes classed as sub prime lending.
Do not go into a sub prime agreement as the charges and redemption figures are extremly high.
I hope this answers any questions.
Tom



Quote:
Originally Posted by fast trader7 View Post
Hello,
do we have to submit returns to HMRC every year if you are only spread betting. My problem is ... If i want a mortgage how do i talk to the bank manager if i donot have anything from HMRC to show him.
is my bank statement enough for banks to give me the loan? Proving my income to authorities is becoming a problem for me though i earn more than UK Average!
Thanks in advance
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Old Oct 5, 2009, 12:39pm   #119
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I have been using prospreads for years and they have been better than any of the others i tried before that...You get direct market access and you trade with the exhange. If you leave a stop in it is activated when the exchamge price is hit not when the spread betting company decides to take you out...that used to really annoy me.
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Old Oct 5, 2009, 4:03pm   #120
 
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Quote:
Originally Posted by TomTom View Post
As a trader this type of activity is classed as gambling.
If you wish to apply for a loan or mortage the standard is to do a self cirt of income.
Please note these type of agreements carry higher interest rates and are sometimes classed as sub prime lending.
Do not go into a sub prime agreement as the charges and redemption figures are extremly high.
I hope this answers any questions.
Tom
As a mortage broker Tom Tom you would be lucky for any lender letting you self cert after all the crap and lies that have come out in the credit crunch. THe only way of it happenening is if you were placing a 40 or 50% deposit down me thinks.

You would be better just providing 3 months bank statements and back these up with some statements from your SB broker confirming any transfers into you bank. This would be ample enough information.

Ged
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