US Futures TAX for UK resident

[Thrawn]

I am about to open my account with US broker, but first I would like to know more about TAX. I have a list of few questions:

1. How much is the TAX on futures trading FOR US citizen?
2. I live in UK and I will have US broker, how does Inland Revenue know about any earnings I make? (is it just through my UK bank account, they can notice that there is some money transferred from the broker, or there are other ways they use)
3. If answer to second question is that they can see profits through history of my bank account, so then what If I had another bank account in another country (with low or none tax) in between transfers, BROKER> MIDDLE BANK> UK BANK ACCOUNT, would this make a trick?

Please do not answer my post if you have nothing specific to say. I have went through a bit of posts already and found no conclusive answers.

 

[sneville]

I am about to open my account with US broker, but first I would like to know more about TAX. I have a list of few questions:

1. How much is the TAX on futures trading FOR US citizen?
2. I live in UK and I will have US broker, how does Inland Revenue know about any earnings I make? (is it just through my UK bank account, they can notice that there is some money transferred from the broker, or there are other ways they use)
3. If answer to second question is that they can see profits through history of my bank account, so then what If I had another bank account in another country (with low or none tax) in between transfers, BROKER> MIDDLE BANK> UK BANK ACCOUNT, would this make a trick?

Please do not answer my post if you have nothing specific to say. I have went through a bit of posts already and found no conclusive answers.

You pay tax based on your residence. If you are a UK resident then you pay UK tax. It doesn't matter if you are trading with a US company.

 

[Thrawn]

sneville

Yeas I read this, so no US tax then, but the thing which really interests me, is the broker informing in any way our IR in UK about my trading history (profits & losses)? or they only can find this out when my account gets money from the broker when I transfer them back.

 

[scose-no-doubt]

So you want us to aid and abet in the devising of a tax evasion scheme... that only benefits you?

 

[DionysusToast]

W-8ben

 

[sneville]

sneville

Yeas I read this, so no US tax then, but the thing which really interests me, is the broker informing in any way our IR in UK about my trading history (profits & losses)? or they only can find this out when my account gets money from the broker when I transfer them back.

You won't pay any US tax. The US broker will not actively inform HMRC regarding your trading history I am not sure if they will provide it if requested from HMRC.

You are required to declare any earning to HMRC if this is through PAYE or a self assessment etc. HMRC are cracking down on off shore accounts and loop holes to avoid paying tax.

There is a saying "there are only two things guaranteed in life death and taxes". If you don't declare these earnings then I hope you can sleep well at night.

My advice would be to speak to an accountant/tax specialist who works with other traders who can best advise on your situation.

 

[Thrawn]

scose-no-doubt no evasion or anything like it I am simply gathering info before making any move, I haven't opened my trading account yet, so that is why I need to know as much as I can before I make a mistake.
Thanks to all of you for help, I got the answers I was looking for