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One of the areas of Forex trading that I find novices are somewhat confused about is the tax treatment of gains or losses made from trading Forex or futures. As with all areas of UK tax this can be really quite complex and you should always consult your accountant or financial adviser for the full information.

uk tax laws on forex

However to keep it simple the rules are more or less as follows:. For individual traders it is close to impossible to have trading gains or losses treated in the same way as self-employed profits and losses are i. The reason for this is that under schedule D people could set off losses from one trade against profits made from another trade.

How To File Taxes As A Forex Trader, Tax articles, Forex software

After that gains are taxed at two different rates. These rates are what is known as top sliced. Ie in effect your capital gains are added to your taxable income to calculate what proportion of your gains are taxed at which of the two rates for capital gains.

Now the good news: Gains made from betting or lottery winnings are free of all capital gains tax. If you trade through a spread betting company, as the name implies, you are in the eyes of our good friends the Inland Revenue actually betting rather than trading.

The reason for this difference in treatment is in the way that those companies are taxed themselves. So why would anybody in the UK put trades through Forex or futures brokers when if they put the same trades through a spread betting company they would pay no tax on the gains.?

And yes you would be right there are such opportunities!

Menu Skip to content Home Automated Trading Systems Forex Course Stock Market Timing System selecting a course Strategies Blog Contact Us. UK Forex gains — a taxing time?

June 26, by: However to keep it simple the rules are more or less as follows: In my own trading I have accounts with both. Previous Post So does anybody make money trading forex and futures? Home Automated Trading Systems Forex Course Stock Market Timing System selecting a course Strategies Testimonials emini trading Contact Us.

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I am intending to start trading in FOREX for a living. I assumed

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