Speculators at sites such as Spread Co will be keeping a keen eye on Mr Osborne’s announcements later on this week. This is because it is budget week in the UK and once again there’s the small matter of tax but will spread betting remain tax-free or will the Chancellor of the Exchequer make a huge u-turn regarding the tax status of spread betting?
Currently in the UK, profits from spread betting are exempt from taxation providing that your spread betting profits don’t constitute your main source of income. Spread betters are also normally exempt from the massive 18 per cent Capital Gains Tax suffered by traditional share traders. It is unlikely that either of these conditions will be altered but in a time when inflation has risen to a two-year high of 4.4 per cent and as the economy’s growth has slowed it’s far from a certainty that spread betting will remain tax-free.
However, for all of this leeway from the treasury spread betters are penalised too. You may not have to pay tax on any profits earned while spread betting, in the same way that a punter placing a bet in the bookies doesn’t, but this means that you are unable to write off any trading losses against your end of year tallying up.
If you want to try your hand at spread betting or if you’re looking for a new place to make your bets visit www.spreadco.com, where you will benefit from tight spreads, no commission or hidden charges plus a huge choice of markets to make your bets on. Head over to Spread Co today to start tax-free betting.
On Wednesday Alistair Darling will deliver his 2010 budget, just six weeks ahead of the expected date of the UK’s general election and if Labour fail to retain their position as governing political party however replaces them will certainly have their own ideas about managing the UK economy. So Why Is Darling Bothering To Have A Budget Now, I hear you ask?
Every year the UK’s government delivers their annual budget, which indicates then plans for revenues gathering by Her Majesty’s Revenue and Customs and expenditures of public sector departments. These figures always have a massive effect on various markets across the globe. Some of the first markets to display effects from the release of the UK Government’s budget are the world’s Forex markets, with traders at companies such as HY Markets readying themselves to make those killer trades.
