If you're an existing forex trader/investor or are looking to 'dip you toe' in forex trading, understanding how forex profits are taxed and more importantly how you can reduce your UK tax bill is essential.
When you consider that the current higher rate of income tax is 40% (rising to 50% next year) effectively reducing your taxes can have a huge effect on your actual 'take home' profits.
In this section we include all articles that relate to forex trading and investing including:
forex trader or forex investor?
how forex is taxed
how to calculate your taxable forex income/gains
tax planning for forex investors & traders
forex options and UK tax
non residency & UK forex
using a company for forex trading
and much more...
Latest Forex Tax Planning Articles
Financial trader or investor after the 22 June Emergency Budget? Most financial investors could be paying CGT at 40% or potentially 50% from next year. This certainly narrows the gap between trader and investor status, and in this article we look at how the change in the rate of CGT will make trader status more attractive. We also include a schedule showing the likely taxes payable for different profit levels under the new rules. . . . keep reading
Why it may be more attractive for financial traders & investors to use a company after April 2011 The recent coalition agreement and subsequent statements from the new Government have made it clear that the rate of CGT for non business assets is to increase to 40% or 50% from April 2011. In this article we look at why this will make using a company more attractive for financial traders and investors after April 2011 . . . keep reading
Spot forex trades and UK tax Question: As a non-resident of the UK for 3 years, are spot forex trades made on my UK forex account subject to tax? Should I be entering losses, or gains on my UK tax return? Answer: No, if . . . keep reading
Structure for Forex Trading - Personal vs Company Hi, My day job is providing consulting services through the my limited company, of which I am co-director. I pay myself a modest salary and dividends from the company and I am not utilising my capital gains exemption. Although I not working at the moment, this will continue to be my primary source of income. Recently, I attended a course to learn how to trade Forex. I am initially going to trade in US currency and use a US broker. As I am new to this, I am not expecting large profits so I see this as a a secondary source of income/investment. My interpretation of your forex tax planning guide is that I should trade personally, and not via a company. Based on my personal circumstances, can you please advise me on how to best structure Forex trading in a tax effective manner? I would also like to know whether I can deduct the expense of educational courses, literature, platform and data subscription costs which can be significant. I look forward to your reply. . . . keep reading
Forex records Question: I have an Offshore Managed Forex account, what sort of records do I need to keep for Tax purposes. . . . keep reading
Using a company to reduce tax on forex/share trading One of the most popular tax planning questions for forex or other financial traders is 'Should I use a company to reduce tax?'. This article looks in detail at when using a company is beneficial for forex and share traders/investors to reduce their UK taxes . . . keep reading
Traders & Investors Returning To The UK After Living Overseas When you return to live in the UK after living and/or working overseas you'll need to pay careful attention to the tax position, particularly in relation to your investments. In this article we look in detail at the tax position for investors and traders returning to the UK . . . keep reading
How traders can use a corporate partnership to avoid the new 50% tax charge Many traders will see their tax bills increase substantially with the advent of the new 50% rate of income tax from April next year. In this article we look at how using a partnership/LLP structure with a corporate partner could substantially reduce the UK tax liability on trading profits . . . keep reading
Using an offshore company for forex trading/investing to reduce tax One of the most common questions we have is whether as a UK resident you can use an offshore company to trade or invest in forex & reduce your UK tax charges. This article looks at how using an offshore company to trade or invest in forex is taxed in the UK. It considers the position for UK resident domiciliaries and non UK domiciliaries . . . keep reading
Financial trader or investor after the 22 June Emergency Budget? Most financial investors could be paying CGT at 40% or potentially 50% from next year. This certainly narrows the gap between trader and investor status, and in this article we look at how the change in the rate of CGT will make trader status more attractive. We also include a schedule showing the likely taxes payable for different profit levels under the new rules. . . . keep reading
Why it may be more attractive for financial traders & investors to use a company after April 2011 The recent coalition agreement and subsequent statements from the new Government have made it clear that the rate of CGT for non business assets is to increase to 40% or 50% from April 2011. In this article we look at why this will make using a company more attractive for financial traders and investors after April 2011 . . . keep reading
Spot forex trades and UK tax Question: As a non-resident of the UK for 3 years, are spot forex trades made on my UK forex account subject to tax? Should I be entering losses, or gains on my UK tax return? Answer: No, if . . . keep reading
Structure for Forex Trading - Personal vs Company Hi, My day job is providing consulting services through the my limited company, of which I am co-director. I pay myself a modest salary and dividends from the company and I am not utilising my capital gains exemption. Although I not working at the moment, this will continue to be my primary source of income. Recently, I attended a course to learn how to trade Forex. I am initially going to trade in US currency and use a US broker. As I am new to this, I am not expecting large profits so I see this as a a secondary source of income/investment. My interpretation of your forex tax planning guide is that I should trade personally, and not via a company. Based on my personal circumstances, can you please advise me on how to best structure Forex trading in a tax effective manner? I would also like to know whether I can deduct the expense of educational courses, literature, platform and data subscription costs which can be significant. I look forward to your reply. . . . keep reading
Forex records Question: I have an Offshore Managed Forex account, what sort of records do I need to keep for Tax purposes. . . . keep reading
Using a company to reduce tax on forex/share trading One of the most popular tax planning questions for forex or other financial traders is 'Should I use a company to reduce tax?'. This article looks in detail at when using a company is beneficial for forex and share traders/investors to reduce their UK taxes . . . keep reading
Traders & Investors Returning To The UK After Living Overseas When you return to live in the UK after living and/or working overseas you'll need to pay careful attention to the tax position, particularly in relation to your investments. In this article we look in detail at the tax position for investors and traders returning to the UK . . . keep reading
How traders can use a corporate partnership to avoid the new 50% tax charge 16/09/2009 Many traders will see their tax bills increase substantially with the advent of the new 50% rate of income tax from April next year. In this article we look at how using a partnership/LLP structure with a corporate partner could substantially reduce the UK tax liability on trading profits . . . keep reading
Using an offshore company for forex trading/investing to reduce tax 09/09/2009 One of the most common questions we have is whether as a UK resident you can use an offshore company to trade or invest in forex & reduce your UK tax charges. This article looks at how using an offshore company to trade or invest in forex is taxed in the UK. It considers the position for UK resident domiciliaries and non UK domiciliaries . . . keep reading
Common tax planning Q&A's for forex traders & investors 17/08/2009 Anyone new to trading or investing in forex will want to know how they'll be taxed in the UK on any profits or gains they make, how they'll get tax relief for any losses and tax planning opportunities. Here's some of the most common tax Q&A's for forex traders/investors? . . . keep reading
Making the most of non resident status to avoid CGT on shares, forex and futures 12/08/2009 Anyone looking to return to the UK should carefully consider there position in respect of any assets that they own. It's frequently the case that they own shares and other investments standing at a considerable gain. The question then is should they be sold before or after a return to the UK? . . . keep reading
Income splitting for share and forex investors to reduce tax 07/08/2009 Spreading ownership of financial assets between a husband and wife is one of the best ways of avoiding both income tax and capital gains tax. In this article we look at the opportunities to save income tax. . . . keep reading
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Financial trader or investor after the 22 June Emergency Budget?
Why it may be more attractive for financial traders & investors to use a company after April 2011
Using an LLP corporate partnership structure to reduce tax on trading profits
Using a company to reduce tax on forex/share trading
Traders & Investors Returning To The UK After Living Overseas
How traders can use a corporate partnership to avoid the new 50% tax charge
Using an offshore company for forex trading/investing to reduce tax
