So is Spread Betting really tax-free?

Spread Betting - Trading Without The Tax

Spread Betting is a form of trading stocks, or any other security by placing your trades on a brokers/bookmakers price rather than the actual market. Trading this way means (in the UK) you don't pay any stamp duty or become liable for capital gains tax on your profits (if there are any!).. But lets get down to the nitty gritty, stocks, indices, forex or commodities, ideas to trade or charts to watch... :) All welcome..
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(Mainly) UK Tax question for a Sunday Morning

Hi
This is something more of a curiosity. In the UK we can trade Forex using spread betting so any gains are totally tax free.
However, lets say for some reason you were using a different method. Maybe you were using a broker in another country, or trading Forex using a CFD account. What asset is Forex categorised under for Capital Gains Tax (CGT)?
Looking at the government CGT website, it includes shares as being subject to CGT but not Forex, it does also state that selling coins is subject to it. However, Forex is neither shares nor coins; coins being physical objects.
And just thinking of this as I type, it also states that CGT is paid on assets. It's arguable though that currency isn't an asset but merely a tool used to purchase assets. After all, there is the often used distinction of people being "cash rich" or "asset rich". Doesn't it blur the line between the distinction of money and assets if you have to pay a tax which is meant to be applied to an increase in value of an asset itself rather than means of exchange?
I'm sure there's plenty of legal rulings on this, and this sub will be quite biased on the subject (shouldn't be taxed). Wondering on peoples thoughts on the later.
Having a few showerthoughts this morning.
submitted by MrFanciful to Forex [link] [comments]

Exchanging foreign currency on Revolut: subject to capital gains tax?

Hi,
I just would like to confirm if my understanding is correct: gains from switching between different currencies on Revolut (or comparable apps/online banks) are not subject to capital gains taxes?
I found some confusing statements online, with this being the clearest one, which seems to indicate that my understanding is right indeed:
> Capital gains arising on withdrawals of money in foreign currency bank accounts will not be liable to capital gains tax (CGT), and capital losses will not be allowable losses.
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/192091/foreign_currency_bank_accounts.pdf

On the other hand, some information I found is contrary to that:
> It can be tax free when carried out on spread betting accounts. Gains that may arise from ordinary currency trading, however, are typically taxed as capital gains or income.
https://www.quora.com/Is-Forex-Trading-actually-tax-free-in-England

Could someone confirm what of those two is right, please?

Thank you!
submitted by OddConsequence3 to UKPersonalFinance [link] [comments]

Does anyone trade forex uk as there many income? If so is it classed as capital gains tax?

I have read that forex is tax free uk as it is classed as spread betting but also read that it’s classed as capital gains so not to sure on this.
submitted by EllisSimmons to Forex [link] [comments]

Forex Trading UK- Tax free or not? Does it need to be with a UK broker? Does it need to be a spreadbet?

Hi All,
I'm looking for advice. I have started making some money doing forex trading. I use IC markets as a broker. I am resident in the UK and forex trading is my second income. I haven't withdrawn anything from my trading account. I am really confused about the "forex is tax free" condition in the UK.... so a few questions and really grateful for some answers!
1: Do I need to be registered with a UK broker in order to fall under the "forex trading is tax free, as long as it's second income" or does IC markets work for me?
2: Does it need to be a spread bet account? only a handful of companies do this, and they give a leverage of 1:30. I need 1:500 as my trading account isn't the word's biggest, tens of thousands gbp.

3: Do I need to file some sort of tax return?

I may have more questions as you lovely, learned people give me answers!
Thank you
submitted by jg019877 to UKPersonalFinance [link] [comments]

A Newbie's Guide to Forex Gambling

Sitting at a bar in my hometown over the holidays, i struck up a conversation with the young bartender who was having a slow night. We talked of life, love, boobies, and...forex. When the conversation turned to future ambitions he dropped the "F bomb" and his eyes lit up green as he passionately explained what forex was. To be honest, i didn't understand half the lingo he was spewing and my interest in the subject was dwindling. Then he brought out the numbers. Holy shit the numbers. On a bar order he showed me how he was going to go from $2000 to $9999999999999 in a number of years. I was getting pretty drunk at this point as the service was lag free when talking to the man. "If it was this easy" i slurred, "why isn't everyone doing this?" He explained to me that everyone in European Land was doing it. He explained he learned the Secrets from a prison Bazillionare who didn't pay his taxes. He told me about his 15 pip system (what is a pip?) and the magic of compounding profits. The bar was getting vibrant again and our conversation got choppy. Between the shots of fireball my buddies were buying me and the game of pool i was crushing at the conversation stopped. I don't remember when we left but i never said goodbye before stumbling out the door.
I woke up feeling FANTASTIC the next day...ughhhh....and had to entertain my girl. In fact I had to visit with family and a few more friends. I did not even have time to think about Forex and went back to my holiday, delusion free.
When i returned home i realized i spent WAY too much money on my holiday. Money, money, money. I wish i was rich. I need to be rich. Rich. Forex. What was that guy talking about? Billions? I could use some bilions. I tapped my IPhone and searched "4X" and eventually found a broker. Woahhhhh slow down, buddy. It's called forex and i bet there is a subreddit for this. Yep! I mean there is a subreddit for dragons banging cars. I didn't understand half the posts until i came across a post promoting babypips. I was going to need a computer and a couple beers for this one.
I read ALL of babypips in one sitting. Granted throughout i was becoming aware of how much studying i was going to need to understand everything but i was getting my feet wet. I learned what a pip, candlestick, R and S levels, money management, and all that fun was. A WORLD was opening up to me and it was COMPLICATED. I was fascinated. I was impatient. I wanted to trade now! I mean, i just had to beat the spread, right?
I opened a demo account on Fxtrade and watched as the charts loaded up. I had a full blown erection at this point. THIS IS SO COOL. Everything was moving so fast. I KNOW WHAT THAT IS. OOOO A DOJI! LOOK AT ALL THE PIPS!!!!!!
At this point you are probably asking how much REAL money i lost. I'm sorry to disappoint you, you sad sad sadistic man. I are smart. At this point i realized mid boner how little i knew. I wanted to read charts, learn the candles, and check out the news. I felt the need to wear a suit as looked at Bloomberg and tickers. THIS WORLD IS AWESOME. I <3 FOREX!
I decided to reward myself for the HOURS of studying i put in. Hours, ha. I was going to take my demo account and guess the market. I wanted to trade so bad and its just pretend money so yea, it's just pretend money. The next 4 hours of my life I got VERY possessive about that pretend money. I was yelling, biting my nails, jumping up and down. Oh, this was the fear and greed aspect people were talking about. WHY DOES IT KEEP GOING DOWN! My pips! My babies!!!
At the end of 4 hours i was down 400 dollars!! I slammed my laptop shut and buried my head in my hands. I am such a shitty trader! Why couldn't i guess the market! Oh....that is right, i was gambling and you know what? I bet with a thousand more hours of studying i would still be gambling. I bet the gambling never stops.
I have so much to learn and so much chart time ahead of me. This is not a get rich quick scheme. Hell, i am convinced you can't get rich without rainman powers and a zillion dollars of starting capital. It's fun, it's exciting, and it's a whole new world that has just opened up to me. So, if you are brand new like me to this world like me take heed to what i learned in my whirlwind introduction and don't be delusional.
  1. You are gambling, even with a strategy
  2. There is a 99.9999999999% chance you won't get rich
  3. You are not rainman
  4. Learn Forex because it's fun and exciting, not to get rich (see #2)
I look forward to learning from this community and i'm beyond excited to dive deeper into this world.Thanks for all the posts that are already here and thanks for the ones you have yet to write. People like me NEED to read them. Bring on the (demo) pips!
submitted by TecoAndJix to Forex [link] [comments]

Recommend me a broker?

I'm new to forex trading, I can't seem to find a broker that fits my needs perfectly. I live in the UK so spread betting would be nice as its tax free, also I want to start with micro lots so 10c/p per pip is what I'm after. Also a broker which doesn't charge £50 per withdrawal would be nice. Also tight spreads is a must. I'm not too bothered about trading platform. Is there anything out there like this? I haven't been able to find anything good.
submitted by Seytonic to Forex [link] [comments]

Spread Betting Course - YouTube Trading Costs in Spread Betting and CFDs Spread Indicator for Forex Trading Free Download - YouTube Advantages & Disadvantages of Spread Betting New tax implications for CFD and Forex traders... #cfd ...

TAX: The implication of tax in spread betting and Forex trading is the main difference. At the time of dealing with Forex trading, you do not win any type of underlying asset, so you do not need to stamp duty charge. So, your profits are exempt both from capital gain and stamp duty. The profits are subject to a capital tax gain. On the other hand, spread betting is different. It is one kind of ... Spread betting is a tax-free financial derivate process where participants place bets on the price movement of security such as forex, indices, commodities, shares, etc. Spread betting is recognized as a form of gambling under the law of the United Kingdom because in spread betting the investor does not own the asset, only speculates on the direction in which the price of the asset will change ... As such the taxman will treat any gains from spread betting activities as tax-free but this also means that losses cannot be claimed against other income. Contracts for difference on the other hand have a lower spread and providers to not pay betting duty. But this also means that any realised profits are subject to CGT and therefore exempt from tax on about the first 9k. There is also a risk ... Spread Betting Tax. Spread betting is different from other forms of bets where the payout is based on the accuracy of the bet placed rather than a win or lose situation. This form of betting is a major growth industry in the UK but carries much larger gains or losses due to higher levels of risk exposed. The wager gambles an amount "per point ... 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 ... Take a tax-free* position on our full range of markets. Open a spread betting sub-account and take a position on over 100 instruments, including major global indices and most major and minor forex pairs. Trade the UK 100 from 0.8 points, Germany 30 from 0.9 points, EUR/USD from 0.6 pips and EUR/GBP from 0.8 pips. Create account Demo account. Spread betting sub-account. Spread betting is free ... I won’t be using the leveraged side of spread betting, it’s just the tax free part that sounds good to me. I like the idea of not having to pay tax, but it just seems too easy. I think that it is pretty clear that someone who pays tax on another income source will never have a problem if they make money via spread betting. The crux of the matter really relates to an individual who makes ...

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Spread Betting Course - YouTube

This is a spread betting training course for traders with a particular focus on short-term trading. Learn spreadbetting from an experienced trader in the fie... CLICK HERE FOR MORE INFO: https://rebrand.ly/forex33 And start earning in the Forex Market Now! In our growing multinational corporate environment, there are... Free Forex Money: http://www.freeforexmoneynodeposit.com/ My Facebook: https://www.facebook.com/BibianoForex Join Forex PH Group: https://www.facebook.com/gr... Tax implications for CFD and Forex traders. Rumours are that the government are looking to reduce the Capital Gains Tax allowance in the UK. How does this af... Spread betting is basically a tax-free wrapper (if you're in the UK) of speculating on the direction of a market.. This could be the direction of an index like the FTSE 100, a currency pair like ... But spread betting is tax free and bid-offer spreads are very tight compared to a decade ago. Please comment? What about re-quotes or rejections when attempting to place trades with a provider ...

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