Spread Betting and Tax

The taxes are the fees charged by the government on a product, a service, an income or an activity. Paying them has always been very important task for individuals to do and not paying them may to lead to penalties or even imprisonment in some cases. Preparing tax returns can be time consuming and a very delicate issue, and you must not ignore them.

There are mainly two categories of taxes in the UK, capital gains tax and stamp duty. The capital gains tax charged in the difference between what you paid for an investment and what you received when you sell that investment (sale of stocks, bonds and shares) and the stamp duty is a form of tax charged on share trading when you buy shares in the market and it is currently 0.5 per cent.

Spread Betting trading unlike other share trading in the UK enjoys a tax-free policy, this means that the gains made from this sort of trading are not subject to capital gains tax. The number of investors entering the financial spread betting investment increases year by year due to this tax-free policy.

The stamp duty is never an issue for investors who wish to trade in the Financial Spread Betting because there is no third party involved between the investor and the broker company. With other share trading investors must pay 0.5 per cent at the moment they buy instruments.