Plus500 outlines withholding tax ... - CFD and Forex Trading

(Mainly) UK Tax question for a Sunday Morning

This is something more of a curiosity. In the UK we can trade Forex using spread betting so any gains are totally tax free.
However, lets say for some reason you were using a different method. Maybe you were using a broker in another country, or trading Forex using a CFD account. What asset is Forex categorised under for Capital Gains Tax (CGT)?
Looking at the government CGT website, it includes shares as being subject to CGT but not Forex, it does also state that selling coins is subject to it. However, Forex is neither shares nor coins; coins being physical objects.
And just thinking of this as I type, it also states that CGT is paid on assets. It's arguable though that currency isn't an asset but merely a tool used to purchase assets. After all, there is the often used distinction of people being "cash rich" or "asset rich". Doesn't it blur the line between the distinction of money and assets if you have to pay a tax which is meant to be applied to an increase in value of an asset itself rather than means of exchange?
I'm sure there's plenty of legal rulings on this, and this sub will be quite biased on the subject (shouldn't be taxed). Wondering on peoples thoughts on the later.
Having a few showerthoughts this morning.
submitted by MrFanciful to Forex [link] [comments]

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Capital Gains Tax will arise on CFD Gains. Capital Gains Tax will arise on the difference between opening and closing values of an asset. Income Tax will arise on deposit interest earned on margin. The margin is the initial equity investment which is usually up to 20% to show the investor can complete the contract on closing. If there are ... Check out our view of the tax implications of trading in CFDs in Taxation Ruling TR 2005/15 Income tax: tax consequences of financial contracts for differences. If you are trading as a small business/sole trader, then you'll generally be able to claim costs associated with earning assessable income (including depreciation on assets, office expenses and losses). The link to Retail Forex and CFD broker Plus500 Ltd (LON:PLUS) sets out below the process by which Plus500 will withhold tax on any dividends distributed by the Group, including with respect to the upcoming dividend, as set forth below.. On 7 February 2017, the Group announced a final dividend per share of $0.3799 ($43.6 million) and a special dividend per share of $0.2729 ($31.4 million) amounting to an ... Virtual currencies tax guide for 2020. Read on this guide to find out some of the things you must know concerning virtual currencies. At the end of it, you’ll be better equipped to answer some of the frequently asked questions on crypto taxation. Capital gains tax (CGT) never applies to CFD’s as there is no asset, and they are always accounted for on revenue account, not capital. When we talk about turnover in relation to CFD’s, we are looking at the outcome of the closed out CFD, not the value of underlying asset. You can claim a deduction for your CFD loss against your other income. The only exception to this would be if you are ... "Dear Mr Tax Man, I'm a bit lost with my tax return. I have been trading forex with Vantage FX as part of my uni course - but it required I use my real funds. I dont have an ABN or anything like that. But in a nutshell, I was trading forex online and made an overall loss of $323.22 for last financial year. I like to do my own tax online. Where ... Interest on Forex CFD balances is calculated on a stand-alone contract basis, and not combined or netted with other currency exposures, including Spot FX. Although IB does not directly reference swap rates, IB reserves the right to apply higher spreads in exceptional market conditions, such as during spikes in swap rates that can occur around fiscal year-ends.

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Happy Wednesday Daily Trading Video Nov 21, 2018

cftc rule 4.41 – hypothetical or simulated performance results have certain inherent limitations. unlike an actual performance record, simulated results do not represent actual trading. also ... Trading CFDs carries a high level of risk since leverage can work both to your advantage and disadvantage. As a result, CFDs may not be suitable for all investors because you may lose all your ... Why Trading Stocks Is Horrible From a Tax Perspective Although you can make a lot of money in the stock market, it is also important to know more about the taxes that come involved with that. Subscribe's Victoria Scholar explains how CFD trading works, from opening an account to closing... If personal advice is needed, consult a qualified legal, tax or investment professional. Do not base any investment decision on the information contained on or our videos ... Warren Buffett's 2nd Rule - Understanding Capital Gains Tax - Duration: 11:56. ... Chart Patterns & Trend Action for Forex, CFD and Stock Trading - Duration: 38:05. Barry Norman's Investors ... Trading CFDs carries a high level of risk since leverage can work both to your advantage and disadvantage. As a result, CFDs may not be suitable for all investors because you may lose all your ...