CFDs and TAX

[edgeoface]

Hello i am sure this has been talked about before

i have no problem paying 18% capital gains tax however apparenty the Inland Revenue can also charge income tax if this becomes a traders primary source of income or becomes greater than your salary so thats up to 40% in some cases that i would have a problem with

anyone have any experiance on this matter i know that moving abroad is an option but i would like to stay put in the UK. If i hire an accountant whole knows of tax loopholes to pay my tax maybe?

Thank you

 

[wheeles]

A few years back I called the inland revenue regarding making a living from trading US equities. I was fully prepared to pay income tax, but in turn I would be deducting all manner of expenses such as a computer, monitor, broadband, brokerage expenses, a share of utility bills etc.

However, the lady I spoke to said that it would be treated as capital gains provided I was not managing other people's money. One thing to note was that as it was considered capital gains, I could not deduct expenses. I would imagine the situation is similar for trading CFDs.

 

[anley]

Edge

Are you making and have you been making good profits from trading over the last 5 years?

If not then concentrate first on making the money then worry about your tax situation otherwise there's a good chance you'll get the tax situation perfect but then find making money is hard so the tax work was time wasted.

 

[ForhisGlory]

Dear all you can off shore trade via companies with numbered accounts with full online trading software and the deposits are low for individuals you can also trade via an off shore company. But as the other comment states earn the money before you worry about these kinds of solution
80k-100k+ . That said it is good to think tax stuff through because there is no point putting all this time in trading if you only end up in debt seems to defeat the object of trading
If you need to know more am happy to answer any questions

 

[Kiwirumpole]

Also the tax question depends on where you live a few countries do not tax world wide income but sadly most do. Especially the countries where it is nice to live.

 

[Lord Flasheart]

Anley is right, its not worth worrying about at this stage, and I don't know of anyone who has been prosecuted, there are Im sure many ways of defending this,so I dont think they will bother. IMHO