One of our lower taxes!! Nov 23, Messages: Deluder, this is an interesting question which I have been discussing withthe inland revenue but as yet not got a clear answer.
The following are facts though: If it is classed as betting then it is free of ALL tax. Spreadbets have this advantage, and with their spreads getting tighter on FX it might be the way to go. If it is your main income, then IR will declare you a professional investor and you will have to declare the proceeds on a tax return and pay tax in that way - not capital gains.
If number 2 does not apply and IR confirm it is taxable then it would be capital gains and the gain is realised when the trade is closed. There you see, I thought someone would know!
Presumably "main" would be if your FX trading gain was bigger than any one other source of income. They do quote at least one pair in both directions, interestingly with different spreads!
They are not perfect though. Alpari have got back to me to say it is taxable as CGT but then I did not suggest to them that it would be my main source of income, which would be nice one day.
Would this defer tax liabilities until following years? Won't make any difference, once the gain is declared in your tax return you owe it. You need a tax accountant.
My neighbour is self employed and all his tax affairs are done 2 years in arrears. Found a lot on CFDs and gambling though. Suggest you ring them yourself. Strongly suggest you go and see an accountant. Feb 9, Messages: Im also interested in this topic and the main Q remains unanswered At what stage should the income be declared? Yearly together with final "tax return" or maybe: Cesil Private, 1st Class. Mar 1, Messages: I've had this out with HMRC last year.
FX income used to be a grey area several years ago, but no longer. FX trading is NOT classed as gambling although spread-betting is , nor is it classed as capital gains. They treat it as normal income, which you will need to self-certify in addition to your normal wages and any other income you make in a given year if applicable. You must log in or sign up to post here. Share This Page Tweet. New trader confused MagedF , Nov 13, William Barnes Dec 3, at 2: Jimkilby Nov 5, Why does my indicator work on some platforms but not others?
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