One of the problems faced by forex traders and investors is obtaining detailed tax planning advice.
In this new book, trading tax specialist Lee Hadnum FCA CTA, looks at how forex traders are taxed and the strategies they can employ to reduce their taxes.
Subjects covered in this book include:
Trading or Investing in Forex
Deciding whether you are a trading or investing in Forex will have a huge impact on your tax position. This is covered in detail with the aid of numerous examples to illustrate key points.
National Insurance For Forex Traders
Top Tax Deductions
There are a number of tax deductions that traders and investors can deduct. Note that the rules for forex traders are very different to the rules for forex investors. We look at the principles that apply and illustrate the top deductions you can claim to reduce tax
Maximising Home Deductions
If you trade forex from home there are lots of tax deductions available.
CGT Matching Rules For Forex Investors
If you're a forex investor the matching rules determine how you determine the cost of your forex disposals for calculating your capital gain. Having a good understanding of these rules allows you to maximise timing benefits.
Making The Most Of Capital Losses
If you incur losses you will want to ensure they are offset as tax efficiently as possible.
Deferring CGT On Forex Gains
Deferring CGT significantly increases your trading balance. We look at the main occasions you can defer CGT on Forex gains.
Income Splitting To Reduce Tax
Income splitting allows you to share the forex income/gains with another person to maximise the offset of personal allowances and basic rate tax bands.
Common Forex Q&A's
Avoiding The 45% Rate of Income Tax
The 45% rate of income tax applies to income (including Forex profits) over £150,000. We look at the main ways you can avoid this tax rate.
Using a UK Company For Forex Investing/Trading
If you trade personally you could be taxed at rates up to 45%, and investors can pay tax at upto 28%. A UK company could pay just 20%. We look how how UK companies can be used by forex traders and investors to reduce tax.
Using An Existing Company
If you own an existing company you may consider using any surplus funds in the company to carry out a forex activity. However, there are a number of UK tax implications. We look at this in detail.
Non Residence And Forex Tax
Non UK residents have a number of UK tax advantages if they are trading or investing in forex. We look when this status can be used to avoid UK tax.
Tax Planning If You Plan To Become Non- Resident In The Future
If you are UK resident now but anticipating becoming non-resident in the future there are a number of steps you can use now to reduce tax.
Establishing Treaty Residence Overseas
When You Can Benefit From Offshore Forex
Using offshore forex trading can still be used to reduce tax – we show you when
Using An Offshore Broker For Forex Trading Or Investing
Making The Most Of Non Residence
Using An Offshore Company For Forex Trading Or Investing
Using An Offshore Foundation For Forex Trading Or Investing
About The Author
The Author of "Tax Planning For Forex Traders" is Lee Hadnum FCA CTA. Lee is a rarity among tax advisers having both legal and chartered accountant qualifications. After qualifying a prize winner in the Institute of Chartered Accountants exams, he also went on to become a chartered tax adviser (CTA).
Lee is the former tax columnist at "YourTradingEdge" – a popular financial trading publication.