Is swap interest tax free?

[dpk123]

Using a normal broker, if I were to recieve swap interest for keeping position open would that "swap interest" be liable to tax? Or is swap tax free in the uk regardless of if its in a spread betting account or normal.

 

[highbury fx]

Using a normal broker, if I were to recieve swap interest for keeping position open would that "swap interest" be liable to tax? Or is swap tax free in the uk regardless of if its in a spread betting account or normal.

its income based on you being long a higher yielding asset. its no different to you receiving interest for savings or deposits in your personal bank account.
as a spreadbet so long as its not your main source of income and you haven't declared that on your spreadbetting application form, the way the law currently stands is those profits are free of tax. if you have a trading plan which is based around the carry trade then you may want to consider that it is akin to picking up pennies in front of a steamroller. danger lurks. be careful

 

[dpk123]

Thanks for the reply, would swap interest on CFD's be tax exempt?

 

[highbury fx]

Thanks for the reply, would swap interest on CFD's be tax exempt?

if you don't make a profit its a moot point. if you do make a profit any positive swap you receive will form a part of that profit and will therefore be taxable.