UK tax reporting - brokers that provide it

[spintron]

Hello,

I am a UK resident and plan to open an account to trade FX and stocks (both UK and US). I am looking for a broker that provides tax reports.

Without considering tax issues, Interactive Brokers and Tradestation would be my preferences. My question to any UK traders out there is, do these brokerages provide tax reports?

If not, would you know of a broker that provides tax reports?

Thanks in advance

 

[spintron]

No uk traders?

Hello,

I am a UK resident and plan to open an account to trade FX and stocks (both UK and US). I am looking for a broker that provides tax reports.

Without considering tax issues, Interactive Brokers and Tradestation would be my preferences. My question to any UK traders out there is, do these brokerages provide tax reports?

If not, would you know of a broker that provides tax reports?

Thanks in advance

 

[PipsKing]

Hi Spitron,

Did you manage to figure out anymore about this, I am trying to find out what Taxes we would have to pay in the UK from trading.

 

[malaguti]

Hi Spitron,

Did you manage to figure out anymore about this, I am trying to find out what Taxes we would have to pay in the UK from trading.

all depends on how,what and over what period..
are you going to be trading shares, options, CFDs, Spreadbetting?
US shares, UK etc
how long will you be keeping the trade alive?
would trading be your primary source of income?

taxation has slight nuances depending to the answers to the above

 

[PipsKing]

all depends on how,what and over what period..
are you going to be trading shares, options, CFDs, Spreadbetting?
US shares, UK etc
how long will you be keeping the trade alive?
would trading be your primary source of income?

taxation has slight nuances depending to the answers to the above

Hi Malaguti

I am looking to do Forex trading, wasnt looking to do Spreadbetting until I have heard it can be tax free in the UK.

I am looking to be doing swing trading so some of my trades will be staying open for a few days...I guess here I will pay rollover.

For the time being trading will be secondary source of income.

How are you operating at the moment.

 

[forker]

Dont spread bet. You are trading not against the market but the market maker and as such they have full visibility of your prices. Google Mt4 dealer plugin and you can see plenty of demonstrations of how easy it is for a broker to manipulate prices. Spread betting firms are the market maker and can get away with manipulation. Rather go to a more respectable broker with direct market access

 

[PipsKing]

Dont spread bet. You are trading not against the market but the market maker and as such they have full visibility of your prices. Google Mt4 dealer plugin and you can see plenty of demonstrations of how easy it is for a broker to manipulate prices. Spread betting firms are the market maker and can get away with manipulation. Rather go to a more respectable broker with direct market access

Thanks for the info, didnt know that. How about the Tax side of things any ideas?

 

[forker]

If you spread betting while working a day job its fully tax free so long as it's not obviously more profitable. If you are a professional then it isn't and there has been cases where traders have lost in court to the taxman. So the rule of thumb is if you going pro don't spread bet for a tax advantage. You would also likely encounter other issues as you are ultimately skimming money off the market maker. You can't avoid tax these days so if you are making money then you will need to decide how to structure yourself. If you are at that stage then get yourself an accountant that knows how to work with your business model. There are plenty out there just Google accountants for traders

 

[counter_violent]

If you spread betting while working a day job its fully tax free so long as it's not obviously more profitable. If you are a professional then it isn't and there has been cases where traders have lost in court to the taxman. So the rule of thumb is if you going pro don't spread bet for a tax advantage. You would also likely encounter other issues as you are ultimately skimming money off the market maker. You can't avoid tax these days so if you are making money then you will need to decide how to structure yourself. If you are at that stage then get yourself an accountant that knows how to work with your business model. There are plenty out there just Google accountants for traders

No, sorry m8, I'm not buying that.

Nowhere does it say that your gambling winnings cannot exceed your taxable employment.

That would be an easy defeat for the taxman. Nobody can predict the future and there are no guarantees that a punter will remain profitable into the future. Indeed, even successful traders, need to know when to call it a day. Even the once high flyers careers can end in disaster.

 

[forker]

From HMRC website:
‘To be taxable, the spread betting wins must come not merely from an opportunity presented by a trade, they must arise from the carrying on of that trade. Whether or not a particular spread bet is taxable will depend on the terms of the contract and the economic substance of what is done.’

 

[forker]

In other words you can't get a job to pretend to disguise trading being your sole income

 

[forker]

No, sorry m8, I'm not buying that.

Nowhere does it say that your gambling winnings cannot exceed your taxable employment.

That would be an easy defeat for the taxman. Nobody can predict the future and there are no guarantees that a punter will remain profitable into the future. Indeed, even successful traders, need to know when to call it a day. Even the once high flyers careers can end in disaster.

So in reply to you it's based on the interpretation of your activity as a trader.

 

[counter_violent]

In other words you can get a job to pretend to disguise trading being your sole income

So if you can demonstrate that you have had an unbroken employment history going back further than your profitable spread betting activity. Then I would imagine the taxman would think long and hard before taking you to court.

Just saying.

 

[forker]

It's a grey area. They will try their luck for sure and you would need to prove that your day job paying you 30k a year is genuinely your real job and that your 5k a month tax free trading earnings is solely based on luck. It's going to be difficult to prove that if you think about it but who knows. There have been winning cases of both sides.

 

[forker]

A helpful link to read http://www.tax-effective-giving.org.uk/Is-Spread-Betting-Still-Tax-Free-In-the-UK