Hi, I have been trading live now for a few months and it has gone alot better than I was predicting and the amount of profit I was going to make from trading, I have now got to the stage that I am still working and the forex is still a part time interest but was wondering if anyone can advise the best web site to look at on how and when to pay tax on any profit you withdraw.
As this is a fairly vague area and if anyone has had the same enquiry I would like to hear from you.
It is my belief that it is covered under capital gains tax rules.
Capital Gains Tax (CGT) : Directgov - Money, tax and benefits
the area is NOT vague at all — as a trader, you can be employed, in which case profit is capital gains, or you can do it as a sole proprietorship (another business even if youre working) which allows you to write off all business related expenses against your gains, or as an LLC or Corporation, which then allows profit to be held in the corporation up to a specific amount, before a dividend must be declared.
the joy of a corporation is that it can accumulate “art work”, rentals, and any and all other expenses and if your own money is involved, it is not taxed as cap gains.
by “artwork”, you can own an antique ferrari, aston - martin, Lagonda, rolls-royce or whatever, even an antique boat or airplane.
i would imagine the corporation could set up a “brothel” as a “wholely owned subsidiary” should it desire, but DO check with your lawyer as to how to set that up, with Nevada being an excellent place to start !
what website? well, that i dont know, but do google for stock market specific accountants, as there are a load of helpful methods of working it out that belong ONLY to the financial community.
mp
Thank you both for your reply’s ,very helpfull. As I am still working I will look into Corporation & a stock market specific accountants, Thanks again.