UK Tax and Spread Betting

[VicZA]

Hi All,

I am new to the UK and also to Market Spread Betting but I have heard that this is considered as "gambling" by the UK Tax Revenue and as such you are not liable for tax on your profits - is that correct?

If so:
- How do you then declare your potential profits as part of Spread Betting?
- Does the website/agency give you some sort of declaration or report that shows this?
- Do you have to complete some sort of documentation before starting your Spread Bet account?
- Do you need to complete a different Tax form?

Thanks for the help

 

[tomorton]

SB winnings are untaxed, you don't need to declare them to HMRC. In order to open a SB account you will have to provide details to the SB firm of your ID, address, current income etc. Some of this is because the FCA demand the SB firms only take on reasonably aware and financially sound clients, and also to counter money laundering. You don't have to notify HMRC and HMRC will not contact you.

There are stories that if SB winnings become your main income you can find tax imposed on them but HMRC say they don't do this, their policy seems to be that they don't want to tax any SB punters at any time in the future and nobody has ever been able to provide evidence that they have personally been taxed on SB winnings.

 

[mpups]

I have heard that this is considered as "gambling" by the UK Tax Revenue and as such you are not liable for tax on your profits - is that correct?

YES

How do you then declare your potential profits as part of Spread Betting?

YOU DONT

Does the website/agency give you some sort of declaration or report that shows this?
- Do you have to complete some sort of documentation before starting your Spread Bet account?
- Do you need to complete a different Tax form?

NO, NO & NO

 

[Spread-Bettor]

Spread betting is classified as a betting activity so no taxes at all, just like with football or any other betting.