Spread Betting Tax free countries or Is Spread Betting Tax Free ? this is a question i get every week in my email, ForexSQ experts conducted Spread Betting Tax Free countries list, If you want to know Is Spread Betting Tax Free in UK and Australia or want financial spread betting tax advice then read this article below.
Spread Betting Tax Free Countries
Spread Betting is Tax free in some countries but this is a question that has different answer and it depends to which country you live, For example spread betting in U.S. is illegal but in some other countries like UK, Australia or South Africa spread betting is tax free, The most popular Spread Betting Tax free country is United Kingdom.
Is Spread Betting Tax Free
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In the UK and some other European countries the profit from spread betting is free from tax. The UK and some other European countries tax authorities designate financial spread betting as gambling and not investing, meaning it is free from capital gains tax and stamp tax, despite the fact that its regulated as a financial product by the Financial Conduct Authority in the UK. Most traders are also not liable for income tax unless they rely solely on their profits from financial spread betting to support themselves. The popularity of financial spread betting in the UK and some other European countries, compared to trading other speculative financial instruments such as CFDs and futures is partly due to this tax advantage. However, this also means any losses cannot be offset against future earnings for tax calculations.
Conversely, in most other countries financial spread betting income is considered taxable. For example, the Australian Tax Office issued a decision in March 2010 saying “Yes, the gains from financial spread betting are asses-sable income under section 6-5 or section 15-15 of the ITAA 1997”. Similarly, any losses on the spread betting contracts are deductible. This has resulted in a much lower interest in financial spread betting in those countries.