Great comments by all.
As usual though, we shouldn’t over complicate things. But those who question taxation on spread betting does speak volumes to me. More so when they’ve been on T2W for several years. If we’re winning or earning from the markets then we would be fully aware of this already.
@ Brumby - I know very little to nothing about the IRS (Taxation) in your country. I’m only aware of my situation in the UK (HMRC - UK tax office) and their rules around this. Although important to mention, for the sake of clarity and to save people getting confused, maybe a thread specifically on the taxation rules in your country would be a good idea.
I’ve provided links and shown evidence of my trading for over a decade. I do not pay tax on my winnings, I’ve never paid tax on my winnings and until the tax law changes, I will never pay tax on my winnings. HMRC has to change for this to happen. This is important to note how I speak. Winnings. Not earnings. I’m simply gambling.
I’m not interested in reading through individual case files (although I’m lightly aware of them and the many decades ago of when) whereby people have run clubs for gambling and been taxed or allowed their facilities to be run as gambling establishments and been taxed. That’s their complicated affairs and hence why it’s gone to court.
Think of it like this: you hear an employee or your mate talking about how much they’ve won this month. Hey, like my employer lost £2k this month. I beat my employer and won.
Or on the flip side your mate says: so I went to the casino last night and earnt £200. Yep, they paid me £200 for me getting a black on roulette.
Can you see (some people won’t), how absurd these statements are. Why then do I hear people still talking about spread betting as trading for ‘a living’ and ‘earnings, profit, income’ etc. It’s gambling, it’s sold as gambling and will remain gambling until HMRC states otherwise with a blanket statement across the land. However, by doing so would lose them more money than they would gain and hence why gambling is taxed direct at the bookies and not the gambler.
If one is spread betting they are gambling. If they are lucky enough to win,they will not be taxed. Equally they will not be able to offset their losses against tax.
Side note: This subject will never be put to bed by some as they will constantly bring it up from time to time. But it does say a lot about them. I would say listen to those doing or have done not those that don’t or can’t. Ie, you want a Ferrari, speak to the person who has one, not your mate with a rover.
Wishing you all a good day trading...... or gambling.



Lee