With financial spread betting, you avoid paying UK Capital Gains Tax (CGT) on your profits as spread bets are structured as a bet. When you trade the markets in other ways, for example traditional share trading, any profits you make are subject to Capital Gains Tax, currently set at 18%*. Similarly, any losses incurred on your spread bets do not constitute capital losses and cannot be off set against capital gains for CGT purposes. 18% CGT rate assumes you are a higher rate tax-payer, with a threshold of £9,600.
*Tax law can and may change.
Spread bets are high-risk products; you need deposit only a small percentage of the value of the bet. However, your losses may substantially exceed that deposit very rapidly and thus require you to make additional deposits at short notice to maintain your bets. Spread bets are not suitable for all customers. Before betting, you should ensure you fully understand the risks and seek independent financial advice if necessary.
Cantor Index Limited is authorised and regulated by the Financial Services Authority, FSA register number 194414.
These products are not intended for people under the age of 18 or for US residents.
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