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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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.
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.
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.