rpaco
Sergeant
- Messages
- 184
Would anyone like to relate their experience of dealing with HMRC re their Forex trading profits/losses and how you do (or do not) declare them to the tax man.
I believe they are taxed as income, but I may be wrong and they may be taxed as Capital gains. However in order to avoid any liability I Spread Bet instead. Income from betting is tax free to the punter in the UK, although there is a gaming tax paid by the bet provider/bookmaker. Whether this applies to Capital Spreads/London Capital Group Ltd I am not sure.
This of course gives me £1 per pip movement (less spread of course) and by traders with real Forex accounts, may be considered to be highly leveraged. Since I need only £60 in my account to bet £1 per pip on Cable and £40 to bet on most other pairs.
I believe they are taxed as income, but I may be wrong and they may be taxed as Capital gains. However in order to avoid any liability I Spread Bet instead. Income from betting is tax free to the punter in the UK, although there is a gaming tax paid by the bet provider/bookmaker. Whether this applies to Capital Spreads/London Capital Group Ltd I am not sure.
This of course gives me £1 per pip movement (less spread of course) and by traders with real Forex accounts, may be considered to be highly leveraged. Since I need only £60 in my account to bet £1 per pip on Cable and £40 to bet on most other pairs.