Legal
Tax Free Profits
Financial Spread Betting is a tax efficient way of trading on the stock markets and other financial products. For UK residents, profits made from financial Spread Betting are exempt from UK Capital Gains Tax.
Betting winnings are not subject to UK Capital Gains Tax by statute. UK courts have also held that individuals are not subject to Income Tax on betting winnings. This means that where spread betting is done on an ad hoc basis, individuals can be confident that the winnings should not be taxable in the UK. Although this treatment should apply to any individual, we recommend that professional gamblers or 'Spread Betters' or any business that engages in Spread Betting to complement its existing activities should seek specialist tax advice to confirm that this treatment is appropriate in their circumstances.
