Why spread bets are a tax winner

The great news about spread bets is they are income and capital gains tax-free for investors. Tim Bennet explains.

Investors normally have to worry about three taxes on their transactions.

First off there's income tax on dividends, bond coupons and interest. This is levied at rates up to 50% from this April for high earners.

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Tim graduated with a history degree from Cambridge University in 1989 and, after a year of travelling, joined the financial services firm Ernst and Young in 1990, qualifying as a chartered accountant in 1994.

He then moved into financial markets training, designing and running a variety of courses at graduate level and beyond for a range of organisations including the Securities and Investment Institute and UBS. He joined MoneyWeek in 2007.