M y understanding that is UK trading is free of tax for all, however, if this was your full time job surely Mr Taxman would like to take some money from you somehow?

Is spread betting tax free is its your sole source of income?

Unfortunately you are incorrect with regard to the tax situation in Britain. Trading is not tax free in the United Kingdom.

However there is a loophole within the betting and gaming industry that profits from gambling are free of tax to the gambler and some consider financial spread betting as a shelter in which you can stick speculative investments to avoid Capital Gains Tax.

So if you bet on forex trade via a spread bet company with your own money and on your own behalf with no financial interest from any other party, then currently you will not be liable to tax on your gains.

Also, importantly spread betting trades are free from stamp duty which makes spread trading especially attractive for short-term traders; especially speculators that open and close trades within one day. Consequently, you cannot offset your losses against tax.

Clients are not liable for stamp duty as we ninjatrader futures demo a spread betting provider pay duty direct to Spread betting forex tax free.

Ringing up any government organisation and asking for an authorised statement is worthless as they are specifically told not to respond to queries such as these as the conversation may be recorded and used in defence!

Treasury to look at spread betting tax exemption after Lords raise concerns - Telegraph

It is all very well having capital gains tax but it is another matter trying to identify it and actually getting profitable traders to report their liabilities. So it is much easier to just tax the spread betting company both corporation tax and gaming duty. The revenue earns far more through this route than it ever will by attempting to tax individual client profits.

Tax laws can of course change but historically and at the present time, investors using this form of trading are not liable for capital gains tax CGT on any gains, a useful property compared to traditional share trading. Even if holding for the long term there is No CGT on your stock holding if held through a spreadbet and no income tax on your dividend stream.

About Privacy Policy Risk Warning Contact. Open an Ayondo Account Today! Trade or Follow other Top Traders with Ayondo!

ActivTrades | Spread Betting, Forex and CFD Online Trading

Home Trading FAQs Back to Basics Spread Betting Course Trader Training Compare and Review Best Used For Small Bet Sizes? Trusted Binary Options Provider.

Sign up for my free course SIGN UP FOR MY FREE 5-PART SPREAD BETTING MINI-COURSE!