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HMRC Tax Rules - Day Trading?

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    #11
    Originally posted by deeniguy View Post
    Do you have any links to this info?

    Initially i started day trading a few weeks ago and made more losses than gains. Now i've decided to invest in stocks on a long term basis such as penny stocks.

    PLEASE BE CAREFUL, this is the same as gambling on horses and just as risky/likely to work financially i.e. no chance.
    Best quote I heard about day trading was 'take 5 grand in notes into your back garden and set fire to it, sooner or later you will do that day trading'
    Figures for numbers ending up skint is high 90's in percent I believe.
    If you can't stop yourself, I would use a small percentage <10% of your investment pot for this OR penny shares and get the rest PCA'd into index trackers.

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      #12
      Originally posted by deeniguy View Post
      Now i've decided to invest in stocks on a long term basis such as penny stocks.
      You could just invest (gamble?) the company money rather than your own... At least that way if you make big losses then you may be able to write them off against company profits but ask your account first (presuming they are still talking to you after you spent your director's loan).
      Free advice and opinions - refunds are available if you are not 100% satisfied.

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        #13
        Profits from spread betting are free from tax because it is regarded as gambling.
        Someone told me that this actually benefits HMRC because it means you cannot claim the losses against tax (as someone else said). And that as HMRC know that people on average lose money spread betting, this means HMRC is in a better financial state as there are (net) fewer offsets against other income and profits from those people.

        Sly..

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          #14
          I don't see the point of day trading, once you add in the costs of buying and selling and the higher tax rates you'll make less money than buying and holding.

          Penny stocks are very risky, most of them go under. I have a long term strategy and I have seen some of my stocks become "penny stocks". Not one of them has ever recovered. I always write them off once they go "penny".
          I'm alright Jack

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            #15
            Originally posted by MarillionFan View Post
            If you trade regularly you will be charged at Income Tax NOT CGT. CGT is based on the risk of holding stocks for more than a month at a time. Day trading which can be a few days is charged at income tax.

            How do I know? See my tax return. Horrible.
            Good Evening.

            What about if you are trading in a stocks and shares ISA?

            Those gains are supposed to be free of Tax.

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              #16
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                #17
                Originally posted by bulltraderpt View Post
                Good Evening.

                What about if you are trading in a stocks and shares ISA?

                Those gains are supposed to be free of Tax.
                Free of Capital Gains Tax...

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                  #18
                  Originally posted by bulltraderpt View Post
                  Good Evening.

                  What about if you are trading in a stocks and shares ISA?

                  Those gains are supposed to be free of Tax.
                  They are supposed to be free of tax, and indeed they are free of all taxes.

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                    #19
                    Originally posted by GJABS View Post
                    They are supposed to be free of tax, and indeed they are free of all taxes.
                    That's my take on it, but now you can day trade in an ISA account. So I suppose my question is if one states they are retired but day trades or swing trades for that matter in one successfully (i.e. makes over the CGT allowance per year), is the tax man going to look at you 'differently'?

                    Thanks

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                      #20
                      Originally posted by bulltraderpt View Post
                      That's my take on it, but now you can day trade in an ISA account. So I suppose my question is if one states they are retired but day trades or swing trades for that matter in one successfully (i.e. makes over the CGT allowance per year), is the tax man going to look at you 'differently'?

                      Thanks
                      Not a good idea because isa dealing fees will eliminate your profits.
                      I suggest you use a broker set up for day trading such as Interactive Brokers (who I use).
                      Concentrate on getting your trading profitable first before looking at tax issues. If you ever do.

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