peterf1966
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Hi Peter
I can hardly contain my excitement on getting in to the tax effects on trading
Anyway, I think that most people are aware that gains on gambling are tax free as a general rule and this includes spreadbetting.
I think that this point is included in the literature of most systems that are touted around including FNT.
However, lets assume that all goes well and FNT means that we can all give up work and focus on full time trading (spread betting) then at this point the gains become taxable.
It seems that the advice would be that even if you make a lot of money spread betting then you should maintain another income, even if that income is much smaller than the amount being earned through spreadbetting. In these circumstances the spreadbetting income will remain tax free, I think on the basis that HMRC would not dare to challenge it for fear of opening the floodgates on people wishing to claim tax relief for losses on gambling / spreadbetting.
The other thing to be aware of is that if you ever offer to manage someone elses cash by 'investing' it in FNT or any other form of spreadbetting then the income from that would be taxable as it would be deemed as a trade.
Assuming that you are still awake Peter after reeding the waffle above, I'd be interested in any comments.
Cheers
Phil
... what !! eh!!
Oh yes. Thanks Phil..this is similar to what some traders at Knowledge 2 Action told me, they did their job at K2A because they enjoyed it, AND to keep the taxman of the scent!
Offering to manage someone esles investment...one for the professionals, lots of legal implications with the FSA I would think - let alone tax ones!