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Where Taxpayers and Advisers Meet

Taxation on stocks shares and Forex

philip cooper
Posts:69
Joined:Thu Jul 08, 2010 3:16 pm
Taxation on stocks shares and Forex

Postby philip cooper » Mon Jan 08, 2018 3:41 pm

I am trying to understand how you are taxed are these.

If you put 10k in Forex in a broker account and trade with it. If for example at end of year your account has 10.5k in do you get taxed on it.

Or is it only when you withdraw.

Also does Forex come under CGT so you get a personal allowance on this .

AGoodman
Posts:1738
Joined:Fri May 16, 2014 3:47 pm

Re: Taxation on stocks shares and Forex

Postby AGoodman » Mon Feb 19, 2018 2:29 pm

I believe you would be taxed on the profits as they arise, rather than on withdrawal, because you are acquiring/disposing of assets (the currency).

The overall gain/loss should equate to the profit over the year but in theory (and probably practice) you would need to consider each individual trade and calculate the gain/loss on each to reach the aggregate position over the tax year.

It should receive CG treatment unless it is effectively your business. HMRC tend to treat personal investment as capital gains by default but it would be different if it was your main source of income (say you were a full time trader making numerous trades a day).


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