stevespray
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There would be absolutely no benefit in setting up a company whose activity was betting. Regardless of the Corporation Tax issue what would happen to the profits? The transfer of profits between the Company and you would be technically classed as earning and would therefore be liable for Income Tax.
The question at hand is exactly as it was laid out in the very first post;
"Can anyone ever be taxed on spread bet winnings?"
Having looked into this issue for several years I'd offer the following advice....
Do not declare any winnings from spread betting on your tax return (I dont think there's a space for it anyway since its not 'generally' classed as a taxable source of income and if there was a space you'd be able to use that space to offset losses).
If spread betting ultimately becomes your only source of income then be prepared for the IR to ask a few questions especially if you have previously been classed as 'Self Employed' or 'Company Director' and as such had been submitting tax returns.
Once you tell the IR that you are living off the proceeds of 'betting' then they will have to consider you as a special case. In terms of percentages very few people make a genuine living from 'betting' (by that I mean purely earning money via placing bets as apposed to selling betting systems or winning horse races which the IR would not class as earning money from betting). The IR claim that they have the right to deal with individual cases like this. The tax inspector I spoke with some years back basically implied that they expected 'everyone' who was earning a living to be contributing to the tax system. She implied that if you found a loophole then they had the power to simply close it if you were attempting to circumvent the ethos of 'everybody pays income tax'.
From what I've read on other forums, and various bits of advice, I would strongly challenge the IR if I were ever taxed on SB winnings.
Steve.
The question at hand is exactly as it was laid out in the very first post;
"Can anyone ever be taxed on spread bet winnings?"
Having looked into this issue for several years I'd offer the following advice....
Do not declare any winnings from spread betting on your tax return (I dont think there's a space for it anyway since its not 'generally' classed as a taxable source of income and if there was a space you'd be able to use that space to offset losses).
If spread betting ultimately becomes your only source of income then be prepared for the IR to ask a few questions especially if you have previously been classed as 'Self Employed' or 'Company Director' and as such had been submitting tax returns.
Once you tell the IR that you are living off the proceeds of 'betting' then they will have to consider you as a special case. In terms of percentages very few people make a genuine living from 'betting' (by that I mean purely earning money via placing bets as apposed to selling betting systems or winning horse races which the IR would not class as earning money from betting). The IR claim that they have the right to deal with individual cases like this. The tax inspector I spoke with some years back basically implied that they expected 'everyone' who was earning a living to be contributing to the tax system. She implied that if you found a loophole then they had the power to simply close it if you were attempting to circumvent the ethos of 'everybody pays income tax'.
From what I've read on other forums, and various bits of advice, I would strongly challenge the IR if I were ever taxed on SB winnings.
Steve.
