Tax of DMA account in LIFFE for traders out side of UK

[neotian]

Hi, I come up with the question like international traders located outside of UK, but they trade into LIFFE/LME, like this case, when they finished PL credit lets say quartly or monthly, do they need to pay any tax for that income. many thanks

 

[SanMiguel]

Hi, I come up with the question like international traders located outside of UK, but they trade into LIFFE/LME, like this case, when they finished PL credit lets say quartly or monthly, do they need to pay any tax for that income. many thanks

Most countries tax on worldwide income regardless of where you are trading.

 

[neotian]

Most countries tax on worldwide income regardless of where you are trading.

Thanks Guys, i understand tax will happen anyway, i am doubt ,if double tax might be in this case, let's say, tax in UK and tax in own country again. have idea?

 

[SanMiguel]

Thanks Guys, i understand tax will happen anyway, i am doubt ,if double tax might be in this case, let's say, tax in UK and tax in own country again. have idea?

No as the US and UK have a taxation agreement.
This is one for your accountant.

 

[neotian]

No as the US and UK have a taxation agreement.
This is one for your accountant.

Yes， there are some mutual agreement between two party countries. thanks , SanMiguel.

 

[DionysusToast]

Most countries tax on worldwide income regardless of where you are trading.

This is not true.

Most countries do not tax on your worldwide income. The US does but that is the exception, not the rule.

There are an enormous amount of tax free investment options for expatriates who have fallen through the cracks tax-wise and US citizens are about the only ones I know that can't take advantage.

I'm from the UK and haven't paid tax for about 12-13 years because as a non-resident, I can earn money there but not be taxed there.

All of my trading accounts are through US brokers. I have had to fill in a number of exemption forms but the amount of tax I pay is zero. I do have the facility to trade LIFFE but have never done that, although I do sometimes trade Eurex and again, no requests for tax or deductions for tax.

Having seen the amount of paperwork a US trader has to complete annually - I'd run a mile from a US broker if I ever had to do that.

 

[neotian]

Wow, that's quite useful information , many thanks. in this way, only tax payed on residential country