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-   -   How is Spread betting taxed? (https://www.englishforum.ch/finance-banking-taxation/138096-how-spread-betting-taxed.html)

reddog 06.02.2012 12:50

How is Spread betting taxed?
 
Hello,
Can I ask how spread betting profits are taxed in Switzerland?

In my country of origin there is no tax, however no that I am a Swiss resident I need to know how I should handle any profits.

I have done some research on the internet, but can't find any conclusive information.

Thanks in advance

tom tulpe 06.02.2012 12:59

Re: How is Spread betting taxed?
 
Quote:

Originally Posted by reddog (Post 1478640)
Hello,
Can I ask how spread betting profits are taxed in Switzerland?

In my country of origin there is no tax, however no that I am a Swiss resident I need to know how I should handle any profits.

I have done some research on the internet, but can't find any conclusive information.

Thanks in advance

It's taxed as income, just like other betting profits or indeed your winning lottery ticket (if you win more than CHF 50).

fatmanfilms 06.02.2012 13:00

Re: How is Spread betting taxed?
 
Quote:

Originally Posted by reddog (Post 1478640)
Hello,
Can I ask how spread betting profits are taxed in Switzerland?

In my country of origin there is no tax, however no that I am a Swiss resident I need to know how I should handle any profits.

I have done some research on the internet, but can't find any conclusive information.

Thanks in advance

There is no capital gains tax in CH, as long as it's not your job. However lottery winnings over 50CHF have 35% tax deducted at source. Spread betting is popular in the UK as it's tax free because it's gmbling rather than investing.

reddog 06.02.2012 13:39

Re: How is Spread betting taxed?
 
Ok thanks for the replies, slightly confused, as one post suggests it may be a Capital gain and therefore not taxed, but one says it is income and should be taxed as income (I was indeed spread betting on shares in the UK as it is tax free)

fatmanfilms 06.02.2012 13:46

Re: How is Spread betting taxed?
 
Quote:

Originally Posted by reddog (Post 1478693)
Ok thanks for the replies, slightly confused, as one post suggests it may be a Capital gain and therefore not taxed, but one says it is income and should be taxed as income (I was indeed spread betting on shares in the UK as it is tax free)

A great deal will depend if you put any reference on your Swiss tax Return or not!
Pretty sure you can get the same exposure with options which would be taxed as capital gains, just remember if you return to the UK within 5 years it may well be taxable in the UK, thats assuming the revenue accept you have 'left permanantly' in the first place! If they have not then you continue to be liable to worldwide income & gains in the UK.

bigblue2 06.02.2012 13:47

Re: How is Spread betting taxed?
 
Quote:

Originally Posted by reddog (Post 1478693)
Ok thanks for the replies, slightly confused, as one post suggests it may be a Capital gain and therefore not taxed, but one says it is income and should be taxed as income (I was indeed spread betting on shares in the UK as it is tax free)


You're reading the replies wrong, its seems clear to me, any gains will be taxed as income, simple.

tom tulpe 06.02.2012 14:02

Re: How is Spread betting taxed?
 
Quote:

Originally Posted by reddog (Post 1478693)
Ok thanks for the replies, slightly confused, as one post suggests it may be a Capital gain and therefore not taxed, but one says it is income and should be taxed as income (I was indeed spread betting on shares in the UK as it is tax free)

If you're spread betting in the UK, the spread betting companies make sure that what they offer is "gambling", precisely to avoid UK CGT.

Switzerland taxes gambling profits. In theory, if you are a Swiss tax resident and win EUR 1'000'000 in Vegas, you have to mention this in your tax retun. The same is true fro spread betting.

This is notoriously difficult to police, which is why in Switzerland, the taxman keeps 35% of all lottery winnings etc. If your personal tax rate is lower, you'll get some of that back when you file your tax return. I'm not going to discuss how the Swiss taxman can find out about spread betting profits in the UK. Your question, after all, was "are these gains taxable?", not "will I get caught?".

reddog 06.02.2012 15:37

Re: How is Spread betting taxed?
 
Ok, that has clarified the situation, thanks!

luckystrike 05.04.2012 00:38

Re: How is Spread betting taxed?
 
these should help

http://www.financial-spread-betting.com/Tax-free.html
http://www.spread-betting.com/tradin...x-free-trading

my understanding is that spread betting is tax free in the UK and possibly Australia. The situation in Switzerland is particular as I believe there is no CGT right?

aSwissInTheUS 05.04.2012 11:46

Re: How is Spread betting taxed?
 
Capital gain is only tax free if it is not from "business like" investments. Zurich tax office has a clarification letter on this subject. German only.

For ex.
You can not trade with borrowed money.
If you trade shares, you have to hold them for at least a year.
If you buy options and derivatives they have to be in direct relation to the shares you own.
Capital gains should not be more than 50% of your other incomes.
The sum of all transaction should be no more than 5 times your assets.
otherwise they assume that your capital gain is from a business you do.

For all other form of incomes 16 ff of StG applies - which means they are normally taxed. 23 explicitly list lotteries as taxable income. 24 list the exemptions.

luckystrike 05.04.2012 14:13

Re: How is Spread betting taxed?
 
so basically you can't buy and sell shares (day trade) and be free from CGT? But if I'm liable for CGT then I should be able to offset losses - they can't have it both ways surely? Tax issues - why do they have to be so darn complicated - they have really put me off trading actively. :msnmad:

Troublawesome 05.01.2015 12:55

Re: How is Spread betting taxed?
 
Wondering the same.

Let's say I SB with a UK SB account and I am taxed at source here so no tax return. How would I let the Swiss taxman know?

Also, isn't 35% a bit harsh? Is there anything similar to spread betting in Switzerland where you can trade with margin without this excruciating tax?


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