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Sam, Accountant
Category: Tax
Satisfied Customers: 14164
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I was wanting to find out the tax consequences if any on

Customer Question

Hi there,I was wanting to find out the tax consequences if any on currency trading ?Regards
Submitted: 4 months ago.
Category: Tax
Expert:  Sam replied 4 months ago.

Hi, Sam here , one of the UK tax Experts here on Just Answer, thank you for your question and I shall reply shortly

Expert:  Sam replied 4 months ago.


Thanks for your patience

I assume this is FOREX? If so then there are no tax consequences see information here under the spread betting rules - this is because its risky and more losses are made than gains and HMRC will not allow losses to be claiemd so cannot tax the gains. The onlt time this is taxable is when you do this for others so are acting as an agent - and this is treated as trade income (income tax)

But if you undertake this yourself with purcahse and sales of currency then this is liable to tax - capital gains although for this year the annual exemption allowance is £11,300 so unless you make more than this for 2017/2018 tax year then you have nothing to declare



Customer: replied 4 months ago.
Sorry yes it is forex and what do you mean by if you undertake his yourself ?Regards
Expert:  Sam replied 4 months ago.


Forex is not then liable to any tax

By yourself I say you decides to spend £10,000 directly buying US dollars and then they went up and then you sold them and made £12,000 sterling - so when you actually are buying and selling currency yourself rather then through FOREX