Tax and Spread Betting (YAWN)

[Dowser]

Simple Question:

Are profits from spread betting your only source of income? If so, do you pay tax on them?

 

[tar]

 

[metrader]

I've never heard about anybody paying tax on spread betting winnings



PS Spread betting is classed as gambling (gambling is not taxed in UK)

 

[Dowser]

Thanks Tar, so your answer to the first part of my question is: "No" and the second is "Not Applicable", am I right?

 

[Dowser]

I've never heard about anybody paying tax on spread betting winnings



PS Spread betting is classed as gambling (gambling is not taxed in UK)

I've never heard either, that's why I am asking for first hand experience

 

[milt]

The clue is in the name....it's a bet,aka wager,gamble etc and outside all U.K. Tax liability no matter if you do it full time or not,as long as you're a private individual and not a company.

 

[itspossible]

we need to un ban F and bring him back for this.he used to pay tax as he never lost a trade you know.

 

[Dowser]

The clue is in the name....it's a bet,aka wager,gamble etc and outside all U.K. Tax liability no matter if you do it full time or not,as long as you're a private individual and not a company.

This discussion has been done to death on other threads. I started this one in the hope that someone would come forward with first hand experience in the matter. That is to say, for example: "Yes, spread betting is my only source of income and I pay tax on my profits because the tax man said...xyz"

What's your personal experience?

 

[milt]

I spread bet full time and I don't pay tax,I don't put it on my tax return because....yada yada etc.
Indeed this subject has been done to death,in fact HMRC prefer to keep it as it is because most people lose.
My accountant keeps me up to date on it,google Ali v HMRC 2016 for a summary of the latest situation,he was a pharmacist who actually WANTED to be classed as a trader and not on CGT.
If you are a mug punter,with no inside knowledge or special skills related to financial markets except that you just happen to win more than you lose then HMRC won't touch you.

 

[Dowser]

Thanks Milt, I spread bet full time, don't have any other sources of income and don't pay tax on my modest profits. I have never asked the tax man for advice either.

 

[Pat494]

If those rascally politicians put taxes on betting it will kill off the UK industry in record time. Also horse racing etc.

 

[highbury fx]

If those rascally politicians put taxes on betting it will kill off the UK industry in record time. Also horse racing etc.

there is tax on betting but the spreadbet firms pay it. we pay 3% of all client spreadbet losses to the revenue.

 

[tar]

Hi highbury

Have you ever heard of anybody paying tax on spread betting winnings?

Thanks

yep.

the key always used to be what you declared as your occupation on the spreadbet application form. if you put down 'trader' or similar then the revenue may have considered it to be your source of income and taxed you regardless of how little you may have won.

I knew of someone about 10 years ago who spreadbet fx for a living and done very very well but paid an estate agency £25k to put him on their books as a salesman so he could declare that on the application form.

I think the key thing here is if you are not spreadbetting profitably or not making a decent wage from spreadbetting you should not put down 'trader' as your occupation. You could create some problems further down the line for yourself.

I don't think spreadbetting profits will be taxed to the mainstream any time soon simply because spreadbet losses will then have to be tax deductible. You don't need me to tell you that more money is lost spreadbetting than won.

endex

 

[Dowser]

Case closed, thanks again Tar

 

[itspossible]

Hi i work as a tax inspector-thanks tar-check pm cbrads

 

[Dowser]

Shhh, so do I IP. I'm an agent provocateur for HMRC