Cgt on forex shares

[Bill31]

I work full time, but on the side as a 2nd income im trading forex currency.
Say if in a year I withdraw 14k, am I correct in thinking I only pay tax after my personal allowance of 12,500? So I be paying it on £1500...

Any advice on paying tax on profits for forex appreciated...

[AGoodman]

You would pay tax on your profits - withdrawing/leaving the profits in your account is irrelevant.

Your personal allowance will be built into your PAYE so is likely to be used up by your employment income. You get the benefit in your pay.

All additional income is likely to be taxable.

[Bill31]

Sorry I meant to say cgt exemption is 12,000 not personal allowance.

So if im full time employed and trading on the side isn't the first £12,000 of gains free of cgt?

[AGoodman]

If you're making investment gains, yes.

If you are trading (in the tax sense) you will be subject to income tax.

Whether you are investing or trading depends on a number of factors - primarily the frequency of trades. Most private investors are investing as frequency is low. Look at the "badges of trade". bim20090