glyder
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Legally you'd be in breach of Financial Services & Markets Act - manging others money is a regulated activity, FSA authorisation will be needed. And thats no small matter to arrange.
I think there was someone on t2w that did that without FSA authorisation, lost the money and ended up being declared bankrupt.
BSD
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:whistling
But true enough, I wouldn't do it without authorisation, just imagine you enter a drawdown and some of your investors get wet feet, what then, potentially, legally etc ?
B
Black Swan
With IG index there's a very simple power of attorney form attached to their site. This allows you to trade another persons' account/money, but they have complete control of the transfer of funds in and out of the account. In that way any profit you make for them is theirs and free of tax...Nothing to stop them making a withdrawal after your spectacular performance, to then meet you halfway up the M6, give you a bag full of readies, or a few pandas/krugerrands as a gift...how you *hide* that gift is your problem..
Oh there's no doubt you could do it, I think he was wondering if you could do it legally which is quite a different matter.
B
Black Swan
The scenario I've outlined is perfectly legit, there's a section on HMRC re. allowable gifts etc. However, IMHO it is your absolute duty to 'avoid' tax at all costs, if you make 500K from trading and don't find a way of keeping close on all of it, as opposed to giving the revenue close on 50% you're a mug. If that means becoming a non dom and spending the tax on a down payment on an apartment in Swiss, even if you don't get to see your kids for 6 months of the year, then you are a bigger mug...
IMHO the money we *take* out of the international money markets has fook all to do with the govts, after all they have no control or say on what banks do or how they act, so why should they have the right to exercise control over our takings? Fook 'em, find a way around it, after all its only what the rich/powerful have done for decades/hundreds of years...don't let them make you think like a little guy...
The scenario I've outlined is perfectly legit, there's a section on HMRC re. allowable gifts etc. However, IMHO it is your absolute duty to 'avoid' tax at all costs, if you make 500K from trading and don't find a way of keeping close on all of it, as opposed to giving the revenue close on 50% you're a mug. If that means becoming a non dom and spending the tax on a down payment on an apartment in Swiss, even if you don't get to see your kids for 6 months of the year, then you are a bigger mug...
IMHO the money we *take* out of the international money markets has fook all to do with the govts, after all they have no control or say on what banks do or how they act, so why should they have the right to exercise control over our takings? Fook 'em, find a way around it, after all its only what the rich/powerful have done for decades/hundreds of years...don't let them make you think like a little guy...
I think the tax issue is separate, what we are discussing is whether or not he can manage other peoples money, regardless of whether or not the tax gets paid. I believe the answer is he cannot, of course he could just go ahead and do it anyway and hope not to get caught, just like you could lie to the taxman and hope not to get caught. Doesnt make it legal though and you can be sure that if he loses their money they will soon run crying to the authorities.
B
Black Swan
But he can manage/trade other peoples' money without being *licensed*, SB offers the perfect, legit. mechanism for doing this. He can then receive a share of those tax free profits. However, at point of receipt he is then in 'taxable territory', what he does then to avoid tax as best he can is his issue...
As for losing someone elses' money trading using their SB account as a platform, well that's just part of the gig..How can they then cry to the authorities? "Er, I allowed this guy to trade my account using SB, he lost money, burn him..."?
Nope, if his contact wants him to trade their money they simply open a SB account with IG, fill in power of Attorney form, and trade... simples.
Scotty2Cues
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The scenario I've outlined is perfectly legit, there's a section on HMRC re. allowable gifts etc. However, IMHO it is your absolute duty to 'avoid' tax at all costs, if you make 500K from trading and don't find a way of keeping close on all of it, as opposed to giving the revenue close on 50% you're a mug. If that means becoming a non dom and spending the tax on a down payment on an apartment in Swiss, even if you don't get to see your kids for 6 months of the year, then you are a bigger mug...
IMHO the money we *take* out of the international money markets has fook all to do with the govts, after all they have no control or say on what banks do or how they act, so why should they have the right to exercise control over our takings? Fook 'em, find a way around it, after all its only what the rich/powerful have done for decades/hundreds of years...don't let them make you think like a little guy...
Is forex subject to CGT? Just out of curiosity what are the ways around it?
glyder
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But he can manage/trade other peoples' money without being *licensed*, SB offers the perfect, legit. mechanism for doing this. He can then receive a share of those tax free profits. However, at point of receipt he is then in 'taxable territory', what he does then to avoid tax as best he can is his issue...
As for losing someone elses' money trading using their SB account as a platform, well that's just part of the gig..How can they then cry to the authorities? "Er, I allowed this guy to trade my account using SB, he lost money, burn him..."?
Nope, if his contact wants him to trade their money they simply open a SB account with IG, fill in power of Attorney form, and trade... simples.
Hi BS a POA can give power to operate an account but not to manage money, a subtle difference but it cuts out any ability to charge fees or comms.
Of course there are ways around it if you are indifferent to the legalities but they may n end in tears one way or another.
luckyd1976
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B
Black Swan
I cba offering you any more advice ...
Tradefor Work
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You are allowed, and as other members said.. I wouldn't do it. It just isn't worth it, the headaches I mean.
I did say different individuals not a single person. So having power of attorney for 20 people, then signing into 21 seperate IG index accounts one after the other in order to execute a single trade in a fast moving market isn't an option for me. I haven't seen a single user - multiple account access option with the main spread betting firms. They have them in the states but not here as far as I know.
They dont have spreadbetting in the US, or are you referring to other states?
Not spread betting, but things such as Interbank FX's Money Manager platform.