Captial Gains Tax rate on CFD trading when you have no income

Parky

Active member
237 28
We will have to agree to disagree, different accountants, like lawyers, will tend to interpret laws differently. But of course in this, if you call it wrong or get duff advice, you will end up with a very big bill. But should the tax man come knocking I am guessing their lawyers and accountants are likely to have deeper pockets than yours. If it sounds wrong it usually is, making a living tax free? Just be careful.
 

malaguti

Senior member
2,359 454
Can't disagree with you there buddy.
i used to be an accountant, have studied tax and corporate law, and consulted for HMRC
 

barjon

Legendary member
10,279 1,558
We will have to agree to disagree, different accountants, like lawyers, will tend to interpret laws differently. But of course in this, if you call it wrong or get duff advice, you will end up with a very big bill. But should the tax man come knocking I am guessing their lawyers and accountants are likely to have deeper pockets than yours. If it sounds wrong it usually is, making a living tax free? Just be careful.
malaguti is correct, parky.

we have covered this several times on here and I recall posting a photo shot of HMRC advice which said that professional gamblers were not “carrying on a trade“ even if it was their sole source of income. As malaguti says one may be regarded as carrying on a trade due to other activities, such as selling trading tips or systems, when spreadbetting profits may be considered as part of that trade income depending on individual circumstances.
 

malaguti

Senior member
2,359 454
Just to add, for Parky's benefit
the gambling tax return is only for those that offer:
  • betting or gaming, or both, from outside the UK to gamblers in the UK - for example, over the internet
  • betting from a UK shop
  • spread betting from the UK
It has to be your trade...not to be confused with what you or i might consider an individual trade (or bet)
 

tomorton

Legendary member
7,277 972
We will have to agree to disagree, different accountants, like lawyers, will tend to interpret laws differently. But of course in this, if you call it wrong or get duff advice, you will end up with a very big bill. But should the tax man come knocking I am guessing their lawyers and accountants are likely to have deeper pockets than yours. If it sounds wrong it usually is, making a living tax free? Just be careful.

In some respects I'd like to believe you are correct. But in such a case as this, where the administration is not absolutely clear, its always going to be possible to find tax advisors who take opposing positions.

What would amount to incontrovertible proof for me would be a decision by HMRC to tax a private retail spreadbetter. But as HMRC decisions are subject to appeal their decision would only be really final if subject to an appeal which upheld their decision.

So, Step 1 - do you know anyone who is a financial spreadbetter who has paid income tax on their gains?
 

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