Are profits from Forex trading taxable?

chewmylegoff

MoneySaverLog wrote: »

So CFD's are really used for hedging then.

no, they just can be.

qpop

Spread betting is also regulated by the Gambling Commission, not the FSA. Makes you think, eh?

Pro poker players pay no tax

"Pro" spread betters pay no tax

I once read that the average professional lifespan of a "pro" spread better is about 6 months.

Forex is about as reliable as spread betting. Ignore the marketing rubbish on the websites, you might find it more fun to put a bet on the horses, at least you get to watch a race in that case, rather than a chart!

atypical

MoneySaverLog wrote: »

It is betting, therefore it's tax free whether it be your sole income or not.

You might find the explanation found here helps. Snippet below:

"The bottom line is that if you are a tax payer who wins at spread betting (or any other forms of gambling for that matter!) you should not be liable for tax on winnings. If you do not have any other regular taxable income other than gambling you will probably be classified as a professional gambler (your trade) and may loose your BIM22017 exemption. In any case if you are employed and pay PAYE you cannot be classed as a professional gambler and so do not need to pay tax on gambling winnings even if they exceed your employed income. The reason HMRC are reluctant ot classify anyone as professional is that a professional gambler could then claim relief against losses from gambling and against the spreadbet companies proportion of their gambling tax."

MoneySaverLog

atypical wrote: »

The reason HMRC are reluctant ot classify anyone as professional is that a professional gambler could then claim relief against losses from gambling and against the spreadbet companies proportion of their gambling tax."

So if you're a professional gambler, no other income, and HMRC classify you that way then you get to offset losses for tax purposes then?

atypical

MoneySaverLog wrote: »

So if you're a professional gambler, no other income, and HMRC classify you that way then you get to offset losses for tax purposes then?

That's what the article says. But I'm no expert.

Drag1

In simple terms. It is taxable. So are CFDs. Spread betting is not.