Originally posted by The-poacher
[B]Dont play the market
Bet with the spread betting firms on the stocks performance
There is NO TAX on bets in the UK but Capital gains Tax applies to stock profits!! [/B]
Interesting, I didn't know about that. Do the stock profits where the Capital Gains Tax applies go to all forms of stock profits (i.e. domestic & foreign) or just domestic? I would imagine it would be hard for them to keep track of foreign transactions. How does CGT apply to profits, is it a banded system like Council Tax or a flat rate?
Hypothetically speaking, suppose I transfer some money to a US bank account. All share transactions at the NYSE which I subsequently do use that account; all profits and withdrawals go there and are kept there. Unless I bring the money back here, it shouldn't be subject to CGT, right?
Any contact I make with a stock broker in the US would be brief, just to tell them to buy/sell. I can monitor, almost in real time, the market ups and downs via the internet. As far as most people are concerned (maybe need to drop the Brit accent ), I am an American with an American account investing in the NYSE listed companies.
Just basically pointing out how difficult it would be to tax based on the capital gains tax and whether, therefore, it would not apply to foreign stock profits. There seems to be little point in making a law if it will prove difficult, if not impossible, to enforce. Is not paying CGT for foreign stock profits against the law anyway? Do you know where I can read up on the clauses of CGT?