DMA + Tax

[N Rothschild]

Probably done to death but here goes,

Currently trading with a US futures broker. They do not report earnings to foreign tax agencies. Is there a potential tax loophole here or am i just going to have to pony up the 18% CGT

 

[Technically Fundamental]

Legally, you should do a SELF ASSESSMENT tax return which means you should be telling the government everything you earn. If you dont you are guilty of tax evaison which means you pay the tax plus a 100-200% penalty.

I'm trying to find a way aroud this through CFDs though atm.

 

[Trader333]

If you have made more than the CGT allowance you are legally obliged to declare it, however you can offset previous capital losses going back several years.


Paul

 

[arabianights]

Open an account in the virgin isles or similar, make sure the money never finds its way to this country and you'll be fine (possibly).

This is illegal, but then again tax is immoral so you are entirely ethically justified in evading it

 

[N Rothschild]

If you have made more than the CGT allowance you are legally obliged to declare it, however you can offset previous capital losses going back several years.


Paul

does this include spread betting loses?

 

[Technically Fundamental]

spread betting is completely tax exempt. sorry boss.

 

[Adamus]

why be illegal? why not just move to the Virgin Islands?

 

[donaldduke]

Probably done to death but here goes,

Currently trading with a US futures broker. They do not report earnings to foreign tax agencies. Is there a potential tax loophole here or am i just going to have to pony up the 18% CGT

You could try futuresbetting.com (which is DMA + Spread), however i have no idea how good they are.

Also if you do alot of trades the extra spread may add up to a similar amount as the tax you will pay to the tax man, and in some cases if you are hyper active it could be more than 18% of your net profits.

 

[Trader333]

does this include spread betting loses?

No SB losses and profits are considered gains and losses from gambling which are not taxable and therefore cannot be offset against tax either.


Paul

 

[combotrader]

Open an account in the virgin isles or similar, make sure the money never finds its way to this country and you'll be fine (possibly).

This is illegal, but then again tax is immoral so you are entirely ethically justified in evading it

Opening an account in these tax havens - pretty sure you need to have a minimum amount. Depending on what your account size is....

ALternatively you could trade through a company residing in the Isle of Man or Gurnsey etc - if you know one - try some prop firms. You will still need your own capital. Dont try it on your own withour expert advice - HMRC is waiting and salivating.......