The Treasury will discuss the tax exemption of spread betting after peers including the Archbishop of Canterbury raised concerned about “extraordinary tax avoidance” on the trades.
Lord Newby, the Treasury spokesman in the House of Lords, said he agreed ministers “ought to look” at the apparent “loophole” that allows spread betters to avoid income tax, capital gains tax and stamp duty on transactions.
The concern was raised by Lord Eatwell during the second day of the debate on the Financial Services (Banking Reform) Bill. The Labour peer said spread betting “is a really extraordinary form of tax avoidance within the financial services industry.”
Betting is a private wager and is not subject to income or capital gains tax. This is true of horse racing, footie, and, yes, betting on financial markets.
Because it’s betting, d’ye see?