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- Oct 16, 2016
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Not a stupid question at all, considering how complicated UK tax can be.REALLY stupid question but is income from trading TAX FREE since it is effectively gambling?
Investing in shares is not Its not Tax free, but for most people it is free from tax...............
Everyone has an annual dividend allowance of £2000, so unless you have thousands invested dividends will be effectively tax free.
Profit from selling your shares would be treated as capital gains tax but again everyone has a capital gains tax allowance of £11,700.
This is in additional to your normal personal allowance.
There is however a half percent stamp duty charged when you buy any share. This is just paid automatically by the stock broker and most people dont even realise it is there
If you want to out and out gamble then you can trade CFDs on the trading212 platform too. These don't attract stamp duty as you don't actually own the underlying asset (like spread betting) However I DO NOT recommend anyone messes with CFDs unless they really know what they are doing as they are leveraged so you can lose large amounts.
Edit: Just noticed Trading212 have a practice mode in case anyone wants to do the sign up then practice before making any larger deposits