Reply to: Day trading and capital gains

[Freamon]

I've already said, you just need another income that you pay tax on, and a few BTL where you pay tax on the rent is ideal, or a bit of contracting every now again.

Simples.

Why lose money on spreadbetting alone when you could increase your losses even further with BTL?

[ASB]

I've already said, you just need another income that you pay tax on, and a few BTL where you pay tax on the rent is ideal, or a bit of contracting every now again.

Simples.

Oops. Didn't see mm had posted up the same link.

[DimPrawn]

But if it's your only income then it could theoretically be classed as your trade and taxed.

So is Spread Betting really tax-free?

There is quite a long thread here.

Tax Forum :: Free Tax Advice • Professional Gambler & Income Tax : Income Tax

It came into the fore a couple of years ago with the tax situation of professional poker players. Can't remember the result.

I've already said, you just need another income that you pay tax on, and a few BTL where you pay tax on the rent is ideal, or a bit of contracting every now again.

Simples.

[ASB]

From the terms and conditions of Smart Live Markets (the SB broker I use):


(c) Under current UK tax law UK individual clients are not liable to pay tax on any Spread Betting profits. We pay the betting duty to the Inland Revenue. If this tax law changes, we reserve the right to pass this cost onto you, giving you one months notice.


Simple as that. Does not say if or buts, just no tax whatsoever, we (the broker) pay your betting duties.


If the IR ever challenge me, I'll be presenting this as evidence of due diligence as to tax situation.

But if it's your only income then it could theoretically be classed as your trade and taxed.

So is Spread Betting really tax-free?

There is quite a long thread here.

Tax Forum :: Free Tax Advice • Professional Gambler & Income Tax : Income Tax

It came into the fore a couple of years ago with the tax situation of professional poker players. Can't remember the result.

[Jog On]

Just got my self assessment back from my accountants and they've but a note on to the tune of 'MF just so you know the way you are trading (day trading) is considered taxable income by HMRC and will not count towards your capital gains as they consider that you are working as a 'trader'.

Just done some Google searches and it appears they are correct!!

So what's the deal here? Since when did you have to keep stocks for more than a few days at a time to count towards Capital Gains!!!mad

What if you don't take any income from it all and reinvest it all to grow your capital?

[Jog On]

If you read that, you'll see that you only lose the tax free status of spreadbetting if you have no other forms of income and hance aren't paying any tax.

So to summarise, get some BTL's, pay some tax on the rental income and make your real living "gambling" on forex.

Boomed!

WHS

[DimPrawn]

From the terms and conditions of Smart Live Markets (the SB broker I use):


(c) Under current UK tax law UK individual clients are not liable to pay tax on any Spread Betting profits. We pay the betting duty to the Inland Revenue. If this tax law changes, we reserve the right to pass this cost onto you, giving you one months notice.


Simple as that. Does not say if or buts, just no tax whatsoever, we (the broker) pay your betting duties.


If the IR ever challenge me, I'll be presenting this as evidence of due diligence as to tax situation.

[suityou01]

Hmm, strange that spread betting companies are so successful in the UK. I wonder why.

[Freamon]

Hmm, strange that spread betting companies are so successful in the UK. I wonder why.

[AtW]

If you read that, you'll see that you only lose the tax free status of spreadbetting if you have no other forms of income and hance aren't paying any tax.

So to summarise, get some BTL's, pay some tax on the rental income and make your real living "gambling" on forex.

Would not the same be true for "day time trading" if it is insignificant part of income like it is for MF, Jog On, Santa Clause and all other fantasy market traders on CUK?

[DimPrawn]

I think the same rules apply to spread betting (rinky-dinky-linky).

So the real question is - does that tat shop make enough to live on?

If you read that, you'll see that you only lose the tax free status of spreadbetting if you have no other forms of income and hance aren't paying any tax.

So to summarise, get some BTL's, pay some tax on the rental income and make your real living "gambling" on forex.

Boomed!

[Moscow Mule]

I think the same rules apply to spread betting (rinky-dinky-linky).

So the real question is - does that tat shop make enough to live on?

[suityou01]

Just got my self assessment back from my accountants and they've but a note on to the tune of 'MF just so you know the way you are trading (day trading) is considered taxable income by HMRC and will not count towards your capital gains as they consider that you are working as a 'trader'.

Just done some Google searches and it appears they are correct!!

So what's the deal here? Since when did you have to keep stocks for more than a few days at a time to count towards Capital Gains!!!mad

You really are an eegit aren't you?

[AtW]

So if you trade on weekends, then it's ok?

[centurian]

Kind of makes sense - the lower rate of tax for CGT is to reward investment - day trading is hardly investing in the enterprise of an organisation, especially if you are shorting.