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Spreadbetting Trader full time tax implications

Would like to know of tax implications if I trade Spreadbet with no other source of income

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I currently have a limited company which I use working as a contractor, my contract is coming to an end and I've decided to trade full time using a spreadbet account which will be my only source of income. Not sure what to do with my limited company yet...
I have been trading with real money for the last 3 years so know of the risks involved. I plan to average around 2k per month after fees. 
my question - will any profits I make from spreadbetting be deemed taxable? What would be the best way to go about trading full time from a tax perspective. I know I cannot offset against any of my losses on a Spreadbet account vs CFD account where I'll also be liable to pay tax. 
would be good to hear from anyone in similar position or someone familiar with the matter who can offer some advice. 
thanks 

Replies (9)

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Psycho
By Wilson Philips
28th Jul 2020 20:59

LondonTrader wrote:
I plan to average around 2k per month after fees.

Does that include accountant’s fees?
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Replying to Wilson Philips:
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By LondonTrader
28th Jul 2020 22:06

2k will be net.

Once my contract finishes I’ll likely keep my company dormant with a small fee going to my accountant every month, £50 I believe it is.

If it is deemed that I’m required to pay taxes on profits from spreadbetting then I’ll likely look for an accountant and consider trading CFD to offset losses.

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Replying to LondonTrader:
Psycho
By Wilson Philips
28th Jul 2020 22:27

So if you already have an accountant why don’t you put your question to him/her? Surely far more reliable than anonymous respondents on an internet forum.

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Replying to Wilson Philips:
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By LondonTrader
28th Jul 2020 22:41

Already tried, he gave me a very vague answer and has no clients who are traders which is why I’ve gone seeking elsewhere.

I was hoping to find someone who could advise. First time using this thread...

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By mjshort
29th Jul 2020 07:38

Spreadbetting is gambling, so tax free in general. This would not be the case for Futures trading.

Unless you do it full time then it maybe taxable. However, if you lose money under those circumstances it is unlikely HMRC will allow the losses to be offset against another type of income.

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Ivor Windybottom
By Ivor Windybottom
29th Jul 2020 09:03

HMRC view gambling/spreadbetting/general mucking about within a company as trading, but when carried out personally is usually treated as non-taxable gambling.

Good record keeping is essential as HMRC may come asking questions after the event if you are successful.

How can you be so measured/sure you will make £2k per month? Why not make £2m in month 1 and retire? I guess there's some catch? That might be relevant to the trading status.

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Replying to Ivor Windybottom:
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By LondonTrader
29th Jul 2020 10:18

Thanks for the response, I may contact HMRC direct to have something in writing as there is no clear rule and comes down to their discretion it seems.

I'm basing figure from an average, nothing is guaranteed in trading! Not here to plug my trading to anyone...

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