Hi
I have been on a demo account and am thinking of opening a live account.
I live in the UK and am interested in a broker from the USA.
I am worried that IF i start to make money i will be taxed by USA and the UK?
Is this right?
Is there anyone here that lives in the UK and trades with an American company?
Do you get taxed by both countries? And if so can you claim foreign tax credit relief?
Thanks for help
You just pay tax in your own country - it doesn’t matter what country your broker is in from your personal tax standpoint. In the UK I think you pay capital gains tax on forex gains. Losses are tax deductible (I think) so in the end you’ll probably want an accountant to look at how you report your trading to the Revenue. It might not matter initially as there probably is a lower threshold level which if you come in under you don’t pay capital gains. In Ireland it’s €5,000 per year - under this and I don’t have to pay capital gains.
To be honest (Nothing personal!) don’t worry about taxes until it comes to it, but have a look at spread betting if you’re in the UK, it won’t matter until you’re doing better than 90% of people but I love paying as little tax as possible!
Ok here’s how it goes as nobody seems sure. In the UK as indeed other developed countries your taxed on your world wide assets/ income in the country your deemed to be domiciled in. In the UK if you spend more than 90 days residing or otherwise your deemed a UK taxpayer. Capital gains has just been raised to a higher threshold in the last budget but is some where in the region of £250- 285k before it kicks in. Inland Revenue are in a bit of a spin on the whole FX trading thing… is it investing or gambling? The jury is out at present (no thats not an invitation to break into yet another ‘is it gambling or speculating threads’ LOL!!!) But if its gambling theres no income tax implications. But its the Inland Revenue… so expect it to be ‘Speculating’! LOL!!! In any event if you trade or offer services to others (managed account, signal service. etc) and its for monetary gain your most decidedly going to have to fork over 30-40%!
All the above is academic of course, as first you need to break even trading! LOL!!! If you do eventually get into the serious money, there are many ways to legally side step HMIRS! PM me when you get there! :53:
Carter, can you please enlighten us on these LEGAL SIDE STEPPINGS… I was so curiously looking out for this on the forum… 
Its a complicated issue and would take a forum in its own right… might be one out there? Anyways just to touch lightly on the subject, here are a few things that can be done.
If you reside in Euroland you have freedom of movement, residence and work in any member state. For a few hundred Euro you could (as one example) set up a Bulgarian company and trade exclusively in that name. Your tax implications will amount to 15% either as a business or individual and no capital gains. Nothing stopping you living there either… very friendly and pretty place. Gibraltar is another favourite. Low personal and business tax, no VAT, etc. Plus you can become a ‘resident’ on paper but not have to reside there. Many ex pats ‘reside’ in Gib but more accurately in the Spanish Costa’s.
For individuals on both side of the ‘pond’ there’s always a Trust, off shore banking, etc. The list goes on and on. First stop in all this will depend on where you live or want to live and a best individual fit tax package. Unless you live in the Caymen Islands (and therefore pay zero tax and even thats not strictly true as you will pay on imported goods which are heavily taxed and an annual ‘fee’ to the Gov) your likely to have to part with some. But why would you hand over 30-40% plus, when you only need to part with 10-15%? Get yourself a good tax accountant/ lawyer!