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Taxation in your country

  • #21
  • Sep 17, 2017 2:02am Sep 17, 2017 2:02am
Quoting Evolution97
Hello, Since i didn't find any other post i wanted to ask you guys how much of your profit get taxed in your country. Are you happy with the %? Just curiousity

In the UK, if done within Spread Betting accounts, there is no tax to pay at all.
I live entirely from the growth of my personal trading account
  • #22
  • Sep 17, 2017 5:09am Sep 17, 2017 5:09am
Quoting GuyBaker
{quote} In the UK, if done within Spread Betting accounts, there is no tax to pay at all.
Thanks, and do you know if the same rule applies to foreign traders?

Also, Is trading through such accounts generally more expensive?
I recall a couple of years back when I was trading with a friend from the UK , he had a spread betting account
and on GBPJY there were 2 pips difference between his trading account and mine.

3.5pips spread is robbery IMO
Have a nice day
  • #23
  • Sep 17, 2017 5:13am Sep 17, 2017 5:13am
Quoting billv
{quote} Thanks, and do you know if the same rule applies to foreign traders? Also, Is trading through such accounts generally more expensive? I recall a couple of years back when I was trading with a friend from the UK , he had a spread betting account and on GBPJY there were 2 pips difference between his trading account and mine. 3.5pips spread is robbery IMO

For foreign traders it would be best to ask the broker and or your local tax authority, I use IG Markets (IG.com), my Spread Betting account typically has 0.6 pip spread on the EUR/USD. I recommend contacting them or others in the UK, I am not sure that non UK residents can open Spread Betting accounts, but I suggest you check for yourself with some brokers.
I live entirely from the growth of my personal trading account
  • #24
  • Sep 17, 2017 5:32am Sep 17, 2017 5:32am
If you keep talking ( in a public Forum ) about this trick to to avoid paying taxes in UK , it's like cutting your balls.
This forum is monitored by many Financial Authorities and , before or after , some officials will notice this "scam" that makes losing millions of pounds to the British government. And there will be a casino.
Prudence, guys, prudence...
  • #25
  • Edited 5:50am Sep 17, 2017 5:40am | Edited 5:50am
Quoting redoktober
If you keep talking ( in a public Forum ) about this trick to to avoid paying taxes in UK , it's like cutting your balls. This forum is monitored by many Financial Authorities and , before or after , some officials will notice this "scam" that makes losing millions of pounds to the British government. And there will be a casino. Prudence, guys, prudence...


I appreciate your concern, however it is not a trick, it is a perfectly legal and encouraged method of speculating on financial markets in the UK

https://www.gov.uk/hmrc-internal-man...anual/bim22015

Far from losing money for the UK it gains money but taxing the broker for his license, 82% of Spread Betters lose after all so if it were regarded as income they could deduct their losses from their other income, this way HMRC has it's cake and eats it
I live entirely from the growth of my personal trading account
  • #26
  • Sep 17, 2017 5:56am Sep 17, 2017 5:56am
Another way of trading tax free in the UK is by doing it through an Independent Savings Account (ISA) I have one in which I invest in an index tracker, all income and gains within my ISA are tax free, the only restriction is I may not deposit more than £20K per year into my ISA.

https://www.gov.uk/individual-saving.../how-isas-work

I suspect these accounts are only for UK citizens though.
I live entirely from the growth of my personal trading account
  • #27
  • Sep 17, 2017 6:00am Sep 17, 2017 6:00am
Quoting GuyBaker
{quote} I appreciate your concern, however it is not a trick, it is a perfectly legal and encouraged method of speculating on financial markets in the UK https://www.gov.uk/hmrc-internal-man...anual/bim22015 Far from losing money for the UK it gains money but taxing the broker for his license, 82% of Spread Betters lose after all so if it were regarded as income they could deduct their losses from their other income, this way HMRC has it's cake and eats it
I have many doubts , and I repeat my questions from another thread : have you ever had a real control by Inland Revenue ?
Have they told you that you are totally tax free ?
This is a very delicate matter , each case is different, a court may give reason, another judge may give wrong ; if I were in your place , I would not be so quiet .
To give these tips to FF Community , you assume a great responsibility.
  • #28
  • Sep 17, 2017 6:04am Sep 17, 2017 6:04am
Quoting redoktober
{quote} I have many doubts , and I repeat my questions from another thread : have you ever had a real control by Inland Revenue ? Have they told you that you are totally tax free ? This is a very delicate matter , each case is different, a court may give reason, another judge may give wrong ; if I were in your place , I would not be so quiet . To give these tips to FF Community , you assume a great responsibility.

I have had many dealings with the HMRC over my life, having run a number of business in the UK, and on one occasion I had to face them in court over some mixup to do with an ex-wife, it is always best to keep on the right side of them. I provided links to actual government documents which detail how gambling regulation and in particular spread betting works in the UK, you may have your doubts, but I do not. This stuff does not even need to appear on my annual tax return.

All would be traders know about Spread Betting in the UK, the brokers promote them heavily, this is not some well kept secret it is public knowledge, I detail it here to show how wonderful my country is

http://www.investopedia.com/articles...qsrc=0&o=40186
I live entirely from the growth of my personal trading account
  • #29
  • Oct 20, 2017 6:11am Oct 20, 2017 6:11am
Thank you for the info Quickly and KarlKraus. This has been bothering me for some time now.
  • #30
  • Feb 14, 2021 12:33pm Feb 14, 2021 12:33pm
Quoting Quickly
{quote} This has now been clarified by the courts and finally there's certainty on the point. The only people who have ever been assessed for any kind of tax on spreadbetting income were people whose spreadbetting income was one component of a broader "trading business". They were selling tuition/coaching/signals as well as spreadbetting themselves, and the court held (in a ruling which surprised many accountants and tax lawyers at the time) that the entire business was a taxable concern, including the income arising from the company's own spreadbets....
Hello @Quickly. I know this is an old thread, but can you tell me the year and name of this case? I've been searching everywhere online but can't find anything that resembles it. It'll be good to cite for reference purposes. I've also only ever seen one other mention of this case online on another forum - apart from that... nothing! Cheers!
  • #31
  • Last Post: Edited 5:35pm Feb 14, 2021 4:45pm | Edited 5:35pm
Singapore

Capital Gain Tax on dissposure of financial instruments(stocks/bonds/derivatives/etc) = 0%

Unless your business's revenue/sole income is solely reliant on such trades(hedge funds/family offices/institutions/prop firms) , then corporate tax applies
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