Its hard to believe really. If someone makes €100,000 a year spread betting the Dow or the FTSE or anything else not a cent is owed to Revenue....
Was it always thus in this country or is this a recent rule?
I understand. That's capital gains though I think. Still hard to believe no INCOME tax is levied.
Does anyone know if Spread Trading has always been tax exempt in Ireland or has it something to do with the EU?
And of course when Revenue see someone making hefty profits yearly via spread trading what are the chances that they DON'T see it as an adventure in trade????
I knew it was too good to be true!!
Thanks for that mandelbrot.
And how exactly are Revenue going to "see" this? Big brother isn't watching your spread betting account like!
The system is self-assessment, so the onus is on the taxpayer to make the relevant return to Revenue! However, given that the conventional wisdom is that spread betting winnings aren't taxable, I can't see many / anyone doing this!
In all honesty though you are "supposed" to inform them that you have a not insubstantial income coming in that they don't know about. At least that's my understanding when you make an income tax return. Then I presume its up to them to decide if its an "adventure in trade" or not. But if you don't tell them in your return and somehow they DO find out you could be in a wee spot of bother...
On a related note: does the location of any winnings matter from the perspective of Irish tax law? More specifically, if I have an a/c with a UK based spread betting company, are winnings made in the UK and if so, does this matter from an Irish tax law perspective?
Of course the big assumption here is the focus on winnings.
Spreadbetting is gambling not investing. Exactly the same as spending all day at the racetrack where the "winnings" would also be tax free.
The winner is the spreadbetting firm who get paid on every bet placed for everyone else this is a zero sum game before costs and negative sum game after costs add up all the bets placed and you will come to a zero result minus your costs of playing.
Don't try this as a sensible investment strategy
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