Hi,
For those Traders in the UK, I am wondering what the Tax laws are?
I’ve done some research and basically if you are an amateur trader, any profits are non taxable.
Is this correct, no matter what your tax band is?
Thanks,
Willie
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If you trade via spreadbet platform available from most UK brokers - then no capital gains (or losses) tax.
Edit- only available to UK clients
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no, it’s completely wrong
as Peterma mentions above, spreadbetting is tax-free, if you’re UK-resident - the profits from any other form of trading are taxable in the normal way, after deducting the losses and expenses
in spite of having been in the industry, one way and another, for decades, i’m not qualified to give tax advice, and you need someone who is, not “forum opinion”
Well, I don’t think that it is the best place for you to get any advice on tax. You can get in touch with your CPA who deals in taxes on a regular basis. They have the right and updated information about everything related to tax and can guide you properly.
Already asked my UK accountant this question. Spreadbetting not taxable, forex trading is taxable if you exceed your personal income alowance. I am keeping records of expenses just in case.
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Depending on your tax class the first £1000 is tax fee. After that it is subject to capital gains tax. You might be able to create your own pension which would be tax free.
Remember this is the UK, they even have a death tax. They even have a tax for owning a house…
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Talk to your CPA about it. He will have a better answer to your question. Why risk when you can get certified information, right?
I don’t think anyone can give you better advice than your CPA. You shouldn’t just trust anyone for such important information and since there is no way to verify information here, better to not take your chances.
No one is allowed by law to give you advice and you should only listen to a tax professional anyway.
The HMRC website breaks it all down pretty straightforward. You would need to pay capital gains tax on your trades, on anything over your £1000 trading allowance.
Plenty around but here is a tax accountants that specialises in forex and crypto tax in the UK: https://www.accountsunlocked.co.uk/services/traders/
As mentioned if you think you should be paying tax then best to seek profressional guidance so as not to get caught out down the line.
Do you have a reference for this rule please?