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Author Topic: tax on forex gains using uk broker?  (Read 2834 times)

Offline gainer

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tax on forex gains using uk broker?
« on: July 04, 2009, 01:33:22 AM »
this topic may have been addressed here in the past, and if so, i missed it.

with the nfa rule change, some traders are switching their accounts to uk brokers.  my question is what are the tax consequences of such a move?

for example, if a usa citizen opens a forex trading account with a uk broker and, for example, earns $20,000 in gains in his trading account during the year 2009.  i know he's got to report and pay tax on his gain to the irs, but does he also have to pay uk tax on that gain?

anyone have direct experience with this situation?

thanks.

bruce

Offline William Deboeck

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Re: tax on forex gains using uk broker?
« Reply #1 on: July 04, 2009, 09:40:06 PM »
this topic may have been addressed here in the past, and if so, i missed it.

with the nfa rule change, some traders are switching their accounts to uk brokers.  my question is what are the tax consequences of such a move?

for example, if a usa citizen opens a forex trading account with a uk broker and, for example, earns $20,000 in gains in his trading account during the year 2009.  i know he's got to report and pay tax on his gain to the irs, but does he also have to pay uk tax on that gain?

anyone have direct experience with this situation?

thanks.

bruce


Bruce

most UK brokers wont accept americans anyway "alpari UK" wont for example.

Lets just say they did to answer your question, you wouldnt pay UK tax if you lived in the US no. and it works the other way around aswell I live in the UK for example if i had an account with an american broker and i earnt £10,000,000,000,000 i wouldnt pay a penny to the US only UK TAX

so you only ever pay tax in your own country to answer your question

Offline gainer

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Re: tax on forex gains using uk broker?
« Reply #2 on: July 07, 2009, 05:06:45 AM »
thanks william for the info.  i have also learned the same thing as what you mention from one broker who operates in both the uk and usa, fxcm.  btw, fxcm uk does accept usa residents for customers....not sure if it's also true the other way around.

bruce


 

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