Newbie Tax Question?

Ive been trading for a year now using a spreading beting account with GFT which is tax free and now want to start trading multiple accounts for friends and family.

i have contacted GFT over their fund manager addon for dealbook360 but they want me to change my spread betting account to a spot forex account before i can use the funds manager to manage other accounts. They have also told me that if i were to change my account from a spread betting account to a spot forex account i would be subject to tax, but they sounded i bit unsure.

does anyone now if i have a spot account will i have to pay tax, i cant seem to see the difference between a spot account and a spread betting account, they are both leveraged the same so the risk is the same.

also do i have to be regulated by the FCA to manage other accounts?

any help and advice would be great.

thanks

Hi there,

I see you're from the UK like me. OK, spot forex you do have to pay tax on but you can claim the first £9200 (or £18400 if you have a partner & place in both names) using your capital gains allowance.

Spread betting as you rightly say doesn't incur any taxes but forex does.

I'm in a difficult position myself regarding taxes and maybe someone here could offer some advice. My own account is just a few thousand so I can claim that under capital gains. However, the account I manage for someone else is a 6 figure account and as far as I'm aware I would have to declare this as income. As I also work full-time it will push me into the higher tax bracket very quickly (40% ).

I'm not sure whether it would be beneficial to set up a company where I could claim back expenses such as computer equipment, internet & telephone bills etc etc.

Kind Regards
Steve

thanks for the advice, now i have to decided what to do next.

I have several people who want me to manage their accounts for them and will probably have to start using the spot account. what about this for an idea.

I keep my spread betting account which is a much larger account (5 figures) then open a spot account and trade the minimum which will then allow me to execute trades on joinned accounts but will keep me below 9200.

also if you dont mind me asking, how do you take a fee from the accounts you manage. as a wage? and do u have to be FCA regulated?

thanks again.