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UK investors and their tax problem

  • #1
  • First Post: Jun 27, 2007 4:53pm Jun 27, 2007 4:53pm
I was wondering if anybody has some good advice regarding tax issue's in the UK.
Like for a example i got interested client, who wants to start investing.
But his problem he lives in the UK and has to pay 40% tax on his profit.
He has a offshore account, but this has become risky as well.
http://www.ifaonline.co.uk/public/sh...ml?page=453493

Now i was hoping somebody knows more then me regarding this.
Or maybe somebody knows a place that can give me some help regarding this.

40% tax on your profit is a lot.
Yeah you can not tell about it, but if you end up getting caught.
You risk a jail time and 200% from your profit you did not declare.

Any help is much appreciated.
  • #2
  • Jun 27, 2007 4:56pm Jun 27, 2007 4:56pm
Quoting Yves

40% tax on your profit is a lot.
Yeah you can not tell about it, but if you end up getting caught.
You risk a jail time and 200% from your profit you did not declare.

Any help is much appreciated.
Whaaat!? 40%! Are you kidding? I pay 0.
R.Ozkan 1984 İzmir-Turkiye
  • #3
  • Jun 27, 2007 4:57pm Jun 27, 2007 4:57pm
try spread betting -tax free as it is classed as gambling.

Unfortunately if you trade full time and do not have a job you then will be classed as a professional gambler and will have to pay normal income tax and NI.

If you made good money trading I would move away from UK to some where warmer anyway so you wouldnt have to pay 40% then
  • #4
  • Jun 27, 2007 5:06pm Jun 27, 2007 5:06pm
Quoting el_duende
try spread betting -tax free as it is classed as gambling.

Unfortunately if you trade full time and do not have a job you then will be classed as a professional gambler and will have to pay normal income tax and NI.

If you made good money trading I would move away from UK to some where warmer anyway so you wouldnt have to pay 40% then
second time spread betting was mentioned.
So i would basically invest all my profit in spread betting.
Leave it on for x amount of time and take it back and its tax free.


40% is a lot i agree, but not much you can do against it.
Not paying tax on it, and getting caught could end up getting you in jail and or paying 200% tax.
  • #5
  • Jun 27, 2007 5:23pm Jun 27, 2007 5:23pm
40% is either the higher tax bracket or capital gains tax. However if he was setup as a limited company he would only have to pay standard business tax. He could then claim all of his 'expenses' out of the business.

I use the term 'expense' loosely

Of course he only has to pay tax if he withdraws his profit. Profits can be left with your broker, traded and not eligible for tax.

Another option is setting up an offshore account. Not offshore UK but say West Indies. You can get some good accounts that offer debit cards, cheque book, online banking etc. Try looking on Google for Loyal bank for more info.
  • #6
  • Last Post: Jun 27, 2007 7:25pm Jun 27, 2007 7:25pm
Quoting Yves
Now i was hoping somebody knows more then me regarding this.
Or maybe somebody knows a place that can give me some help regarding this.
You can't rely on a forum like this for tax advice. Some of what has been said here already is wrong. Please seek professional advice from a UK tax expert.
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