Spreadbetting and Tax (2016)

[SimonPieman]

Hi traders, I am planning on spreadbetting the FTSE100 this summer and wondered whether I need to keep records of my profits/losses for tax purposes? If so how and what forms do I need?

I am unaware of anyone being chased up by HMRC, no matter whether it was their sole source of income or not. However, I don't want a nasty bill/audit in 4 years time!

Also if people are taxed - what's the point in spreadbetting when you can get better prices with CFDs? 😕

 

[mike.]

Hi Simon, welcome to the forum..firstly there is a clue in the title..spreadbetting i.e. it comes under uk gambling laws thus...tax free..

Now some may argue that it is taxable if it is your sole means of income, there are many threads on this issue..here is one of them...👍

http://www.trade2win.com/boards/spread-betting-cfds/182418-spread-betting-tax-free-profits-not.html

 

[barjon]

Yes, currently it's tax free even if sole means of income. The only slightly grey area is if you have an associated business (like selling a trading system or share tips sort of thing) where your spread betting may be deemed to be part of that business overall.

 

[SimonPieman]

Cheers mike mate. In some perverse way if it is taxable it would be easier to get that £1M mortgage lol! 👍

Ya barjon can see the logic in HMRC going after educators/stock brokers