Tax and futures trading- UK

This is a discussion on Tax and futures trading- UK within the Home Trader forums, part of the Trading Career category; If you have another job and trade futures on the side without using a ltd structure, your futures profits/losses will ...

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Old May 8, 2017, 11:13am   #9
 
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Joined Oct 2012
CGT vs income tax treatment

If you have another job and trade futures on the side without using a ltd structure, your futures profits/losses will be assessed by HMRC under the capital gains regulations, not income tax rules. CGT is by far the most common tax treatment; it is apparently extremely hard to convince HMRC otherwise (ie that you are "trading" and thus subject to income tax) even if you trade frequently.
Note, though, that CGT treatment only applies to trades carried out on a "recognised futures exchange". If trades are carried out on a non-recognised exchange (SGX for instance falls within that category i think) then profits will be treated as income and taxed accordingly. If you have a loss I am not sure whether you can utilise that to reduce your income tax liability for your regular job..

this is the link to the relevant HMRC page:
http://www.gov.uk/hmrc-internal-manu...manual/cg56004
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Old May 9, 2017, 7:18am   #10
Joined Jan 2006
I only just happen to come across this thread - awesome information - thanks for all the posters who have shared their findings!
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