UK Taxes and Forex

Hi,

I'm with FXDD Malta broker which is based in Malta. I am a UK resident. Do i need to pay taxes on profit/loss in UK or malta? or not pay at all?

thanks,

Same as you. In UK and with FXDD Malta. Nothing at all so my account tells me.

You will fall under the UK tax regime. As UK taxes on worldwide income for its domiciled residents.

* If you trade as a sideline it will fall under capital gains. You will be able to use your capital gains allowance before it gets taxed.
* If you trade professionally and it is your main income it will fall under income tax.

If you are non domicled in the UK there are some good tax benefits.

If you want to read more about this google "traders tax club". I think they have a £1 weekly membership and use this week to download all their documents. I am not affiliated with this website but I have used it in the past when living in the UK.

Useful site!

I'd suggest employing the services of an accountant who specializes in this area, the way a trading business is structured can save literally tens of thousands in tax liability.

Unfortunately there are not many accounts specialised in this. However this website can get you in contact with one.

But with CGT rising soon I would not want to trade for a living from the UK. Unless you use spread betting.

If you are resident but not domiciled in the UK. You only have to pay tax over the money you move into the UK. No surprise a lot of wealthy people are living in the uk.