Spread betting is a way of investing in particular markets such as forex, shares and indices. Spread betting is a leveraged product which means you only have to invest a small deposit for a much larger market exposure. Leverage can make your investment capital go further but you can also lose more than your initial deposit.
Spread betting could be ideal for active traders looking for tax free profits and diversifying your portfolio. This will not apply to all traders.
Tax on spread bets, stamp duty
(a) Tax. In relation to tax:
- We are not providing tax advice. We will not advise you of existing tax laws or changes to tax laws;
- It is up to you to obtain your own tax advice;
- Your tax situation will depend on, for example, your personal circumstances and the tax jurisdiction that applies to you;
- Tax treatment may well change in the future;
- You are responsible for any and all taxes (including stamp duty and capital gains tax) payable by you in connection with your trades and other transactions. If we have to pay any of these on your behalf, you must repay us; and
- The Market Information Sheets will clearly state if a market is subject to a financial transaction tax, and how the tax is calculated. Should you trade any market that is subject to a financial transaction tax, the tax will be debited from your Account by us, and paid to the relevant tax authority on your behalf.
Why Spread Bet:
- Pay no capital gains tax or stamp duty*
- No commission to pay – just the dealing spreads
- Leverage for up to 1:200
- Trade forex, indices, shares, commodities and more.
- Gain access to markets such as whole stock indices, as you will never own the underlying instrument this means you can take long and short positions within these asset classes.
*There is a risk that bets may be or become subject to tax (in addition to the betting duty that Alpha pay) due to the personal circumstances of the customer, particularly if the customer a corporate or partnership.
It is important to understand the risks involved and have suitable risk management strategies in place. Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.Start Trading Live Now Try Our FREE Trial Demo Account