new_trader
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People are always saying that spread betting can be taxed if it is deemed 'professional'. This is just not true and it will never be taxed.
The simple reason is that we all know more money is lost than made in spread betting so if it were taxable, losses would have to be tax deductable and the Inland Revenue would incur a net loss.
That just ain't gonna happen...
In addition, tax is deducted on every bet anyway so they won't tax you again.
I'm not sure if this is just your opinion but if that was the 'simple' reason then ALL trading would be tax free.
You pay taxes on PROFITS. You don't get money back on losses. It's that simple. The inland revenue never incur's a loss. They either get more taxes from you or none. The only time you get a tax refund is if you have been over-taxed. That doesn't happen in trading because in theory you will only send a cheque to the IR if you make a profit. Most people don't pay taxes spread betting because most either lose money or haven't bothered to research facts and just prefer to go with consensus.
In addition, tax is deducted on every bet anyway so they won't tax you again.
This is also a load of rubbish. I pay income tax on the wages I earn and the company I work for also pays company tax.