Taxation in Forex

Hi guys just wondering how you all deal with taxation on your trading accounts (if at all ). I'm a trader from the UK and just wanted clarity from others who may have dealt with it thus far.

I know about Spreadbet accounts being tax free but I doubt everyone who trades in the UK uses them. Also, the lotsizes are very much different between those 2 accounts.

Whether or not you pay tax on your trading income is purely up to you, I'm just interested in how you came to your decision either way.

Hi, Xm

I have been told by my accountant that if trading is your only income, then it should be declared to the taxman, spreadbets or fx.


MT

Currently trading is my secondary income

Hi
As far as I know, British traders don't get taxed at all on spreadbetting gains. Not too sure about forex trading profits. Almost makes Brits want to trade with spreadbetters rather than forex retail brokers.

Hi, Doji Star

Spread betting is taxed upfront in the UK. It is classed as betting and attracts tax that the broker has to pay similar to horse and sports betting.

You are correct that trading on forex accounts is taxable.

MT

You should be fine. MT