Forex trading - capital loss

Hi, I have made some losses from 2019 onwards. I have a full time job on top of this. I read about forex trading being tax free in the uk but I am not too sure about this. Could you please clarify this whether any profits would be tax free? Also, could I report these losses and if it is allowable, how do I go about it? Will this be capital loss relief or go under income tax? Thanks

Hi Lint,
Gains from Forex trading are taxable in the UK under Capital Gains Tax.
Although there is no requirement to declare losses to HMRC, if you do, you can carry them forward to set agains a gain arising in a future tax year. You have 4 years from the end of the tax year the losses arise, to declare them to HMRC.
If you are required to complete a tax return, you would declare the losses in the Capital Gains section or on SA108 and where no tax return is required, a written letter with supporting evidence would be posted to so that the losses can be agreed and logged for the future.
H.M. Revenue and Customs Self Assessment BX9 1AS.
Thank you. 


 

Hello, if I lose 9000£ in forex and then withdraw 9000£ will I have to pay tax even if I made 0£ profit

Hi,
Currency other than sterling is a chargeable asset and its disposal can give rise to a chargeable gain or an allowable loss.  
Please have a look at link below for more information.
CG78300 - Foreign currency: introduction
Thank you.