Is SpreadBetting Profits Taxable?

[vchohan]

Hi,

As title suggests can your profits from Spreadbetting be taxed at all?
Can it be taxable even if you make, for example a million pounds in a year?

Viks

 

[N Rothschild]

no

 

[KillPhil08]

Only if it's your sole income I hear.

 

[sneville]

Hi,

As title suggests can your profits from Spreadbetting be taxed at all?
Can it be taxable even if you make, for example a million pounds in a year?

Viks

Do a search this subject has beeen done to death

 

[vchohan]

I'll have a search for it thanks for the replies guys. I wanted to know if it's taxable if it's you're sole income.

 

[ns1000]

The real answer is that no-one can tell you without going through your personal circumstances in minute detail. For the VAST majority of people, profits made from spread betting are free of tax as the income would be classed as a capital gain rather than income. Betting is exemtpt from CGT. There are highly unusual circumstances in which it could be classed as income (and therefore taxable), but frankly this would require some effort on your part to make it so. More to the point, if you've placed a bet in a previous tax year the situation will not change this year as long as your circumstances and tax law haven't changed. The amount of money involved does not make a difference to the tax status of the product.

Basically unless you have some very unusual cirmcumstances, it won't be subject to tax and you can't offset any losses.

 

[new_trader]

Yes, you pay double the tax everyone else does plus you must always buy the drinks on a night out.

 

[minime69]

i've been told its not taxable if it's not your main source of income.

so another question, if it is your main source of income, how do you get around this?

part time job?

 

[ns1000]

The point of gambling is that its outcome is a matter of chance rather than skill. The assumption is therefore that no-one earns an income from it. There are exceptions but the default position of the HMRC is that bets are not subject to tax. An excpetion would generally have to be a proactive measure (i.e the professional gambler informs HMRC of his status) rather than reactive (HMRC telling you that you are). You don't need to prove it's not your main income as its assumed that it isn't.

 

[new_trader]

The point of gambling is that its outcome is a matter of chance rather than skill. The assumption is therefore that no-one earns an income from it. There are exceptions but the default position of the HMRC is that bets are not subject to tax. An excpetion would generally have to be a proactive measure (i.e the professional gambler informs HMRC of his status) rather than reactive (HMRC telling you that you are). You don't need to prove it's not your main income as its assumed that it isn't.

Due to the social stigma associated with gambling I get the impression that the HMRC wouldn't want to overtly state that there is such a thing as a 'professional' gambler. This is now why I am convinced they will never consider any form of gambling as taxable.

 

[minime69]

The point of gambling is that its outcome is a matter of chance rather than skill. The assumption is therefore that no-one earns an income from it. There are exceptions but the default position of the HMRC is that bets are not subject to tax. An excpetion would generally have to be a proactive measure (i.e the professional gambler informs HMRC of his status) rather than reactive (HMRC telling you that you are). You don't need to prove it's not your main income as its assumed that it isn't.

but if you simply tell HMRC that you dont have any income, they would investigate, and if this is your only income, what do you do?

 

[ns1000]

but if you simply tell HMRC that you dont have any income, they would investigate, and if this is your only income, what do you do?

You would almost certainnly not have any other income to declare - dividends, income from savings etc. I really doubt they would investigate.

Assuming you have spreadbet in a previous tax year and not paid tax, they are unlikely to be able to claim that it has changed from gambling to income. If you gamble as a leisure activity it continues to be a leisure activity even if you have no other paid employment.


Yes there are all sorts of technical permutations which potentially might be it almost possible for spread betting to be classed as an income, but they are highly unlikely to come about.

 

[minime69]

You would almost certainnly not have any other income to declare - dividends, income from savings etc. I really doubt they would investigate.

Assuming you have spreadbet in a previous tax year and not paid tax, they are unlikely to be able to claim that it has changed from gambling to income. If you gamble as a leisure activity it continues to be a leisure activity even if you have no other paid employment.


Yes there are all sorts of technical permutations which potentially might be it almost possible for spread betting to be classed as an income, but they are highly unlikely to come about.

well i guess it's a case of wait and see then.

thanks