Confused about tax on winnings?

[ruthlessimon]

So you are a plagiariser not called Tim!

How else am I meant to quote someone?

it's gambling if it's a game of pure chance, but if it is an expression of an element of skill then it's betting.

Imo the majority of "trading strategies" are no better than pure chance - & I think the extreme failure rate is proof of this! i.e. if I back every fav @ 5mins & exit @ 1mins, that's classed as skill?

[firlandsfarm]

How else am I meant to quote someone?

I thought you were signing off your post as Tim

Imo the majority of "trading strategies" are no better than pure chance - & I think the extreme failure rate is proof of this! i.e. if I back every fav @ 5mins & exit @ 1mins, that's classed as skill?

Agreed but I was thinking that when someone like Peter opens a trade he is not gambling on the price movement. A fixed strategy trading the same thing blindly is gambling but if intensive reasearch has been conducted and can show that back every fav @ 5mins & exit @ 1mins is profitable then there is an element of skill, but unlikely in the example you chose

[ShaunWhite]

a temporary tax, finally reintroduced in 1842 to fund necessary expenditure on the railways ... how are those railways?

And income tax was a temporary tax to fund the Napoleonic war....how are things with the Europeans ?

[wearthefoxhat]

How do the good gambling people in the United States manage?

Sports betting, Poker, Horse Race and Casino winnings are all taxable income. You even get your picture taken on the horse track if you win over a certain amount (I think it's $5k), near the pay out window!

https://www.efile.com/taxable-gambling- ... ome-taxes/

Wouldn't take much of a tweak for the UK to fall in line at some time.

Theoretically, you could report your winnings year on year anyway. Use an accountant that knows how to fudge/present your figures, along with any other income over the tax year. That way you're covered and it's up to the HMRC to decide. (we already know their decision).

[firlandsfarm]

And income tax was a temporary tax to fund the Napoleonic war....how are things with the Europeans ?

Yes and it's early introductions were temporary but after it's final (temporary) reintroduction in 1842 it has stayed! I blame the Europeans (especially the French) for everything

[firlandsfarm]

Theoretically, you could report your winnings year on year anyway.

Risky!!! First rule of tax planning/avoidance ... don't report it unless they ask for it!

[mobius]

Video game loot boxes are "in violation of gambling legislation", according to the Belgium Gaming Commission.

Loot boxes give random rewards and can be acquired either through gameplay or by spending real cash.
bbc.co.uk - 5 hours ago

Tax isn't the only thing to worry about. Whatever you do - don't tell the taxman you actually like doing this.
Oh, who is it that publishes this betangel thingy?
Failure to comply may lead to a fine of €800,000 (£697,000) and up to five years in prison for the publishers.

[ruthlessimon]

How do the good gambling people in the United States manage?

Thought this was interesting from a guy I asked about the state of gambling in the US:

"..the USA took the more foolish route of prohibition, which has failed spectacularly. The USA definitely likes its “sin taxes”, ie. gambling, tobacco and alcohol. I believe Mr. Brown just had a much more common sense and modern approach to online gambling in general, realizing that the worlds’ population is continuing to trend towards online activities."

[ANGELS15]

There was an interesting article a little while back: you should be able to find it on the internet: google 'The reason the UK dose'nt tax betting is because it wouldn't produce any revenue'. There was a debate in the House of Lords in 2013 about spread and other forms of Betting. One of the reasons given for not taxing betting is that 'the winnings of the succesfull are offet by the losses of others'. They thought it would lead to a revenue loss.There is also a standard part of UK law that states that if you tax something then there must be allowances for expenses for doing that activity. Even if they could find a way to do it I hardly think it would be worth their while. There must surely be very few people who can produce large enough profits year on year. Also proffesionals who travel regularly to the races to book boxes etc all expenses.

[iambic_pentameter]

Given the discussion about this subject, interesting to note there is a runner in the 1.50pm at Sandown called "Taxmeifyoucan"

It would be wonderful to see the price trade between 20% and 28% lower than BSP - this two figures are the current CGT (Capital Gains Tax) rates.

Iambic