Must I declare my profits from FX trading for tax purposes?

Must I declare my profits from FX trading for tax purposes?

• Basically as a hobby I trade FX on iforex platform...If I make profits and I wish to transfer some money into my account must I declare it to the tax office and if so how? One can imagine that if a large sum of money comes into my account the bank will start asking questions anyway.

• Answer:

  You should declare your profits and losses on your Tax Return. If you trade for yourself alone, you should complete the Capital Gains pages. The first £10,100 of profits each year will be tax-free. If you trade for others, the activity will be treated as a trade and you should complete the self- employment pages. You should also register for Class 2 National Insurance or claim the small earnings exception if you qualify. This should be done within 3 months of commencement of the trading activity. If you do not normally complete Tax Returns, you will need to ask for one. You need to do this by 5 October after the end of the tax year or you run the risk of being charged a penalty.