TYPE
Monotype Imaging Holdings Inc.
stock NASDAQ

Dear OP you're a UK trader turning profitable you're asking about your UK tax liability from trading?
> 1. Always speak to the the tax man for advice specific to you
> 2. Overview
It all depends on the TYPE OF TRADING ACCOUNT you have whether you pay tax or not in UK
UK has a special trading account called SPREAD BETTING (SB), it's considered gambling account by tax man as such all profits are from gambling ARE TAX FREE (but with 1 exception)
UK has all the traditional trading accounts too (eg CFD) which aren't considered gambling as such all profits are considered capital gains so ARE TAXABLE
The exception for SB is if you have a primary income
- if you have a primary job J1 (&paying income tax already ) then SB profits are gambling profits (tax free)
- if you have no primary job then trading becomes your primary job J1 & so your profits are not tax free.
The advice is keep a job (even part time) so you can say your primary job pays your bills & trading is not your primary job.
It's all to do with ticking checklist (taxman calls them BADGES OF TRADING [not trading as in speculation but as in business trading]).
If you tick all their boxes then your trading is a business...else you trading is not a business.

Dear OP you're a UK trader turning profitable you're asking about your UK tax liability from trading?
> 1. Always speak to the the tax man for advice specific to you
> 2. Overview
It all depends on the TYPE OF TRADING ACCOUNT you have whether you pay tax or not in UK
UK has a special trading account called SPREAD BETTING (SB), it's considered gambling account by tax man as such all profits are from gambling ARE TAX FREE (but with 1 exception)
UK has all the traditional trading accounts too (eg CFD) which aren't considered gambling as such all profits are considered capital gains so ARE TAXABLE
The exception for SB is if you have a primary income
- if you have a primary job J1 (&paying income tax already ) then SB profits are gambling profits (tax free)
- if you have no primary job then trading becomes your primary job J1 & so your profits are not tax free.
The advice is keep a job (even part time) so you can say your primary job pays your bills & trading is not your primary job.
It's all to do with ticking checklist (taxman calls them BADGES OF TRADING [not trading as in speculation but as in business trading]).
If you tick all their boxes then your trading is a business...else you trading is not a business.