Spread betting
Spread betting is a straightforward and tax-efficient way of leveraging the financial markets.
Spread betting is a straightforward and tax-efficient way of leveraging the financial markets.
The spread-betting company predicts where a price or score of anything from a share to a commodity to a cricket game will stand at a specified time in the future. The prediction takes the form of a spread - the range between the low and high estimates. You then bet on those prices, 'buying' at the high price if you think the price will rise from current levels and 'selling' at the low price if you believe it will fall.
Spread-betting profits count as gambling wins, so aren't liable for capital gains tax, but spread-betting losses - which can be high - cannot be set against other gains to reduce tax.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Hargreaves Lansdown bumps up cash ISA with £25 cashback - does it beat the wider ISA market?
Just days before the end of the tax year, Hargreaves Lansdown has launched a £25 bonus for those who open a cash ISA on its savings platform. Does the bonus make it a competitive rate, and are you eligible for the cashback?
By Vaishali Varu Published
-
FCA targets finfluencers with new social media guidance
So-called finfluencers have been warned by the UK financial watchdog that they could face prosecution if they fail to follow new rules.
By Henry Sandercock Published