Forex trading tax implications uk

Forex trading tax implications uk

Author: kaban4ik Date of post: 22.06.2017

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Ask follow up questions if you need to. Rate the answer you receive. Ask Tony Tax Your Own Question. Tony Tax , Tax Consultant. Inc Tax, CGT, Corp Tax, IHT, VAT. Type Your UK Tax Question Here Tony Tax is online now. What tax implications if any are there if I started making. What tax implications if any are there if I started making income via forex trading?

Are profits from Forex trading taxable? - Forums

First off, you will find some useful information at the site here. If you are trading forex through a spread betting company, there will be no tax to pay on profits or tax relief on losses as you will be considered by the tax office to be gambling. Some will tell you that some who make big profits from spread betting forex pay tax but I know of none and if there are any, they have been poorly advised.

If you are trading forex through a broker using their trading platform, then the tax situation will depend on how much time you spend on it. The Revenue are keen to avoid giving self-employed status to what they call hobby traders who make losses and then try to offset those losses against their other income.

I know people who make a living from forex trading and who have never registered as self-employed. I do think, however, that the Revenue may issue backdated assessments if they ever enquire into those individual's tax returns and see that they spend their entire working day trading. Let me know if you have any queries.

forex trading tax implications uk

Ask your own question now. Many Thanks for getting back to me, I have found all the above very helpful and will accept shortly. Just to check though, I would only trade for 30mins - 1hour a day or every other day though is this too regular?

An hour a day is not full time so I'd say it's not regular.

forex trading tax implications uk

The fact that you will only spend an hour a day trading does not mean you aren't running a business, the profits from which are subject to income tax and nic as opposed to CGT but it makes it less likely especially if you have a larger source of income on which you depend. Oh ok, how is the best way to determine if I was running a business? Many thanks for your time again.

Can you tell me what you do for a living and how much you earn please. You say you will be trading for an hour a day. What time of day will this be? Will you be determining your own entry and exit points or following a subscription service? Ask Your Own UK Tax Question.

Spread Betting and Tax in the UK

I am a Management accounts assistant on 20K and will start a trade at 6 am before I go work and when I come home I will finish my trade e. I determine all my own entry and exit points and am give free access to use the platforms of Forex.

Also another company I am looking to use is FXCM.

For now I'd declare your net profits as capital gains. You aren't doing it full time and, until such time as you are, I don't see the tax office saying that you are running a business. Related UK Tax Questions.

What tax implications if any are there if I started making

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