If you spread bet professionally, and it is your only source of income, then you will be subject to income tax.There are, however, a couple of exemptions to the no-tax rule to be aware of: This no-commission spread betting works by factoring in the cost of opening your trade into the spread. No CommissionĪpart from not paying taxes, you do not have to pay commission fees.
Therefore, you do not pay stamp duty tax, reducing your trading costs over time. In spread betting, you do not hold the underlying asset. The profits you make are exempt from CGT, so you can keep all of your profits.
There are no capital gains taxes to concern yourself with when spread betting. If you are a trader of financial products in the UK, you might find spread betting an attractive option since it is a tax-free alternative to other financial derivatives like CFD trading. What are the UK spread betting tax benefits? While individual circumstances may impact tax, we have provided up-to-date tax laws and how they are applied to trading. This not only can impact winnings but also applies to the tax treatment of losses in the United Kingdom. Buying and selling shares, making a spread bet or trading CFDs are all treated differently from CGT to stamp duty. The HMRC has different tax laws that apply to the way UK residents trade financial markets.
