Question: I am considering financial spread betting on behalf of a few friends who are aware of the winnings I have made and want to risk some of their money with me. There are broadly two ways I can see to do this: 1. They give me money they are willing to risk and, at my discretion, I bet with their money (alongside my own money) and we share any of their winnings 50/50. I would give them 50% of winnings. 2. My broker also allows account holders to set up a 'power of attorney' on accounts. This means my friends would complete a power of attorney form with the broker allowing me to bet on my friends behalf from their own accounts. I would place bets on their accounts in the same way I do on my account and we would agree to split their winnings 50/50. They would give me 50% of the winnings. My questions are: a) Would both of these be tax free arrangements? b) Is there a preference of one over the other? I note (1) is me giving them 50% winnings and (2) is them giving me 50% winnings. c) At the moment I have 2-3 friends interested. Would there be an issue if more friends were involved (say 5-10)? d) Assuming there is a tax free system here, I understand that it wouldn't have to be mentioned on HMRC self assessment, as there is no box that deals with it. Is this true? . . . (to read the remainder of this article, please log in below.)
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