[UK] Income declarations and TAX from Binary Options

sannyboysannyboy Posts: 2
Hi,

Does anyone have any resources that detail the best way to set up as a binary options trader in the UK. As briefly as I can, this is what I mean:

Is it wise to register as self employed, or is there any need to?
Has anyone set up a business, and traded as that business, so that the liability is not on an individual, and rather a company? Are there any benefits from this?
I have read that any financial gains made from trading binary options are not subject to tax in the UK as it falls into some sort of gambling regulations. If that is the case, does anything need to be declared to anyone... ever?!

Appreciate this wont be legal advice... just experiences from people based in the UK who are already making money from their trading.

Thank you

Comments

  • Henrik_RossiHenrik_Rossi Posts: 5 admin
    You are correct, profits from binary options are NOT subject to income tax in the UK. The reverse is also true - you cannot claim back losses on your tax return.

    Things start to get slightly more vague if you class binary options as your full time occupation, but at present binary options are treated the same as sports betting in terms of income tax - you do not need to declare it. This may change if regulation of binary options moves from the UK gambling Commission (where it is now) to the Financial Conduct Authority. binaryoptions.co.uk/uk-tax-binary-options
  • I have perused that any monetary profits produced using exchanging double alternatives are not expose to impose in the UK as it falls into a type of betting controls. On the off chance that that is the situation, does anything should be proclaimed to anybody... ever?!
  • Gook32Gook32 Posts: 60
    I find that income from BOs are somehow in the gray zone in the UK. If you are providing sort of advisory services with respect to trading BOs than your income is subject to taxation. So it all depends on tax context. It would be best to speak with local tax consultant on the topic
  • KeriusKerius Posts: 40
    As some persons already advised only local tax worker can reply if it will be considered as UK income cause probably there are some cases when it is and there for sure some cases when it's not really. Thanks for that once again really. Do good.
  • YozshujindYozshujind Posts: 70
    You need to ask your adviser with that matter anyway for many many things out there. I do recommend you to do something like that if you really want some good results there. Such income is for sure taxable no matter how you put it.
  • HulapointikHulapointik Posts: 28
    Always consult with your CPA or accountant before doing things like that, it could be totally different from what you really can imagine anyway for many many reasons out there. How else it should really be done for whatever reason. I do not understdand all this for now.
  • Samuhn74Samuhn74 Posts: 43
    As already many have said such consultation is really a need in that case or servce please do get it very very correctly anyway. How else it's even possible no matter what. I hope you do matter there. What will be the tax at max level by the way in that case ?
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