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    Trading Currency Taxable?

    Was just reading about the whole trading process, and one question which I can't find an answer for is, is trading currency taxable? Would it count as capital gains tax As spread betting is not.

    6 Comments

    Are you planning to make more than £11k profit??? If yes you should get a job in investment bank no problem

    Read somewhere it was 9 out of 10 spread betters lose money, b vary, very very vary..

    Yes - taxable if trading the actual currencies - if of course you make any actual profits (after commissions).

    Spread betting is treat as gambling - so exempt from tax.

    As smokiesausage says be careful! The statistics quoted are true - 90% of amateurs who enter active trading will lose. You are trading against the professionals - people who know more than you know and have better resources than you! Start with demo accounts (which are misleading as give better entries and exits than what can actually be achieved) and graduate to spread betting when you can demonstrate a successful system. Play with spread betting for a while - again if profitable after say 6 months trading small, graduate to exchange trading to minimise the spreads. By that time if successful it'll be a pleasure to pay the tax on your profits!

    Good luck!

    Forex trading is considered the same as spread betting in tax terms within the UK. So you pay no tax on gains. You are not really trading anything just shorting one currency against another, there are also no insider trading rules

    Sorry but I disagree with Dannyrobbo.

    If buying/selling actual foreign currencies through a Forex Trader (unlike spreadbetting where you are gambling in the movement of the prices) then you are exchanging assets.

    The HMRC define Capital Gains tax as

    "Capital Gains Tax is a tax on the profit when you sell (or ‘dispose of’) something (an ‘asset’) that’s increased in value.
    It’s the gain you make that’s taxed, not the amount of money you receive."

    gov.uk/cap…tax


    Van197311 h, 26 m ago

    Sorry but I disagree with Dannyrobbo.If buying/selling actual foreign …Sorry but I disagree with Dannyrobbo.If buying/selling actual foreign currencies through a Forex Trader (unlike spreadbetting where you are gambling in the movement of the prices) then you are exchanging assets.The HMRC define Capital Gains tax as "Capital Gains Tax is a tax on the profit when you sell (or ‘dispose of’) something (an ‘asset’) that’s increased in value. It’s the gain you make that’s taxed, not the amount of money you receive."https://www.gov.uk/capital-gains-tax



    I agree with you van, I guess I misread the question. If you are trading in actual currency then it would be taxable as cgt, unless it's your main income then it's as if self employed.

    If you are not trading in currency and are shorting one against another it would be tax free like spread betting.

    That hat being said it's a bit of a murky world those markets and is not regulated like the stock exchange so make sure you do quite a bit of research before you jump in.
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