Uk Tax On Forex

Hiya, can anyone give a straight answer as to what the tax laws are here in the UK, regarding foreign exchange trading?

Thanks for reading this.

James

If you want a real answer go talk a professional tax adviser that deals with such matters in the UK.

Well if it isn’t tax free then it may be taxed as other income which means 40% tax. Trading futures is tax free to my knowledge but not sure about FX think it could be classed as same - gambling the government say.

Definitely speak to a professional tax solicitor though. And if they want to tax you think about trading on the channel Islands where the tax is 20% flat tax on all income tax at Jersey.

Income Tax - Income Tax Office

20% Means 20%

UK tax is overcomplicated and harsh so I don’t understand it. Jersey on the other hand seems more reasonable but tax advisor can help you.

I guess arabs have it good with no tax huh?

I’m not in the tax proffesion but it should be zero if you trade by means of cfds
I don’t think this is allowed in the US but in the UK a CFD is treated as gambleing.
Call GFT or IG index

As far as I am aware, profits from stock and forex dealing are liable for capital gains tax.

That is why some, like myself, prefer to trade on a spread betting site which is almost an identical way of trading but is exempt from UK tax.

Ah, right. I understand :wink:

I am in contact with some UK tax experts now for some advice on this. If I get an answer I will let you know.

Have you contacted an advisor yet? Did you receive any answer?

http://forums.babypips.com/newbie-island/45337-tax-forex.html

Spread Betting = Tax Free
Spot Forex = Taxed as Income NOT Capital Gains.