ax Question: A couple questions arising from your response. You said: The risk is that you would be classed as receiving an investment return from his investments such that your share of the profits (i.e. the 50%) was not in relation to your own spread betting profits. If the arrangement is set up as an informal arrangement with him having no obligation to account to you for the profits it would be very difficult to argue that this was a profit arising from an investment. Ideally the income should be treated as arising solely to your friend which would then be tax free. Loans should be made in his name to support the fact that the income is his income and represents his profits from spread betting. Question: If the loans are in his name and the income treated as arising solely to him, how will he be able to pay half of it over to me without attracting any tax? Gifting it to me, perhaps? How likely would the Revenue be to challenge any solution. If the loans were in my name would passing the legal interest to him, but retain the beneficial interest help avoid tax? - I am not too clear in relation to this concept. Where a syndicate plays the lottery, they pool their personal money, buy multiple lines and then split the winnings tax free - How would our arrangement (pooling our personal money, my friend 'gambling it' and then us splitting the winnings) be any different from a tax perspective? I think this whole subject is an interesting one and I am surprised more people have not asked questions in relation to or undertaken it themselves. . . . (to read the remainder of this article, please log in below.)
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