Hi Roberto

I'm surprised you're so definite that it is taxable.

Arguments on different threads on this site would suggest otherwise. Some positive it is, others equally passionate it isn't (not going to start that whole debate again though).

Except to say that when I started trading I spreadbetted. I contacted the IR to ascertain the tax situation, and they themselves didn't know, in fact the guy I spoke to didn't even know what spreadbetting was!!

However, I moved onto direct access before I got a definitive answer, so never got to the bottom of it.

lol, wasn't planning to do it myself either. But I remember speaking to my doctor once about what i did, and he said one of his patients gambles for a living. Goes out to Vegas for about 3 mths per year, can't remember what he plays, but makes enough to live off the other 9 mths.

Thx for reply.

I know, I know ...

In the last couple of years I've discussed it in great detail with two specialist accountants and two members of the tax inspectorate. Spread-betting is indeed a very grey area. I can't believe that anyone pays income tax on it yet. Regarding all other forms of gambling, if they are your sole income, you have to pay income tax on them: it's as simple as that. The theory that because there's a gaming levy at source, they are necessarily tax-free is just plain wrong! There's a mountain of case-law on the subject and any _specialist_ accountant or lawyer won't have 5 seconds' hesitation confirming it (and any non-specialist one will probably be just as surprised as most of the people who post their own views and theories here!).

Thorpe runs a 300 million dollar hedge fund out of Orange county CA . He used to manage billions then scaled back . He returns around 10-15% a year every year and has 100 million $ waiting list for assett allocation . His system was arbitrage orginally going long on the warrant i think and shorting the stock something like that back in the 80's . Now he pairs trade almost looking for stock that have certain features. He wrote a book on arb's system which is on amazon if you look hard enough .. Clever guy .