Tax Implications on trading Eminis

This is a discussion on Tax Implications on trading Eminis within the First Steps forums, part of the Reception category; Can anyone tell me: As a UK citizen what the tax implications are for trading Eminis, namely the S&P500 and ...

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Old Sep 8, 2008, 1:13pm   #1
 
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Tax Implications on trading Eminis

Can anyone tell me:

As a UK citizen what the tax implications are for trading Eminis, namely the S&P500 and Russell 2000?

Do I pay US tax or UK tax, Both or none at all?
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Old Sep 8, 2008, 1:36pm   #2
 
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UK unfortunately, unless you want to experience the chancellors wrath and set up an offshore company
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Old Sep 8, 2008, 3:10pm   #3
 
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grabey started this thread So how much do I have to pay?

What tax is it called, Capital Gains TAx? or something else?


Quote:
Originally Posted by One Eyed Shark View Post
UK unfortunately, unless you want to experience the chancellors wrath and set up an offshore company
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Old Sep 8, 2008, 4:16pm   #4
gc1
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Since the overwhelming majority of new E-Mini traders lose money it's only going to affect you if you are in the minority.

My understanding is that unless you are considered to be running a business (i.e. subject to income tax and N.I.) it's only capital gains tax - both on any "trading profits" and from any "profit" on on US$ margin funds when you convert them back to £ (if the £ were to have dropped during the period your funds were held as $) - with of course the annual CGT allowance.

So for 1 or 2 lot beginner traders it's unlikely to be an issue.

Last edited by gc1; Sep 8, 2008 at 4:21pm.
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Old Dec 24, 2008, 11:13pm   #5
 
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At what stage does the Inland Revenue decide one is running a trading business?

Are there any benefits to it?

I am a uk citizen and trade 200 eminis per day.

Really appreciate any info.
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