Hello, if you have any questions or need further clarification after reading my answer please let me know. Foreign currency gains are generally taxed under capital gains tax. Forex trading gains will be chargeable to capital gains tax and not income tax. If you were engaged in sread betting then this is viewd by UK legislation as a gambling activity and there no tax is payable on the gains brought about from spread betting. Capital Gains tax will be payable. I hope this is helpful and answers your question.
If you are happy and there are no more issues I will appreciate if you would kindly rate the service I provided to ensure I get paid for it. I am available for any follow up questions you may have, and you can use the reply button to post your follow up questions to the page. Sorry Im not sure if Ive given you the correct scenario. You stated in your opening statement that you intend starting trading in Forex as a living.
You may wish to consider registering for self assessment as self employed if this income forms the bulk of your income once operational for some time. Once it is deemed profits from a trade then they will be chargeable to income tax and national insurance. If you register for self assessment as self employed then you would also have to register for Class2 NI for self employed. You are better placed to assess your position once you have started to trade and start making profits.
Ok thanks for that, I am intending to spend all my time on trading ie I wont have any other income or time spent on anything else to earn income. So would I be correct in stating that profits would initially be treated as CGT until such time as I register for self employed,at which point its becomes income rather than CGT? If I were you, I would take the approach of taxation under CGT initially for practical reasons and build up my profile for consideration for registering for self assessment over the next three months.
If on the other hand, this is going to be your only income and occupation then consider registering for self assessment from the outset. You can do that by following the link here. Sorry to come back again, above you mention self assessment registering. I initially read this as self employment,but are you suggesting registering for self assessment, but continuing only to treat as profits for CGT?
The reason Im asking is that I met with an accouting firm today and they said that it would be only CGT,no need to set up as self employed or ltd company,and Im a bit confsed!! If you are reporting the gains as capital gains for tax purposes, then you do not have to register for self assessment as self employed or you do not have to set up a LTD company.
As I have stated in previous answer, this question would only arise if you were to report the gains as a trade then you would decide whether you wish to report the financial activity as sole trader or through LTD company. Unless you are already filing a tax return, you should register for self assessment and then you will be required to file a tax return and report your capital gains as appropriate. Technically, you are unemployed until such time that you start trading as either a self employed sole trader or draw a salary as director of your LTD company.
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Ask follow up questions if you need to. Rate the answer you receive. Type Your Tax Question Here Thank you for your question.. If you need more information please let me know before you rate my service. Ask Your Own Tax Question. Does this make any difference? What tax is payable for CGT? Colin, thank you for your reply. It does not make any difference what currency currencies you deal in. Ask your own question now. Colin, thank you for accepting my answer. It will depend on how much time you spend on this activity.
If you need more information please let me know. Is there a standard timeframe.. I notice you said 'once you have been trading for some time'. Colin, thank you for your reply.. You can do that by following the link here http: In this case, would I be considered unemployed? Colin, thank you for your question. If I do as above don't pay NI,does that then retrict my state pension? Currently I have paid for 31 years out of 35 required Question Date Submitted Do you pay tax to a nanny before the contract is signed?
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