I have been trading CFD's since May last year on a fairly limited basis. However, I have come to filing my tax return for year 03/04 and although fully aware that any gains and losses in a closed cfd transaction are subject to CGT, there is a question my accountant and I can not find the answer too - not even from our CFD provider! ....
- Does anyone know whether the income from dividend adjustments (ie - that nice wad of cash that is deposited to your cfd account on long positions on ex date), is taxed as income tax, or taxed under CGT? My accountant believes that this cash would sensibly be treated as a capital gain and hence taxed under CGT rules, but there is nothing out there that he can find to verify this...
Would appreciate if anyone had any pearls of wisdom on this....many thanks. (If this income is treated as Capital Gains, could any negative cash flow from a short position at ex date be offset against gains?)
AJ
- Does anyone know whether the income from dividend adjustments (ie - that nice wad of cash that is deposited to your cfd account on long positions on ex date), is taxed as income tax, or taxed under CGT? My accountant believes that this cash would sensibly be treated as a capital gain and hence taxed under CGT rules, but there is nothing out there that he can find to verify this...
Would appreciate if anyone had any pearls of wisdom on this....many thanks. (If this income is treated as Capital Gains, could any negative cash flow from a short position at ex date be offset against gains?)
AJ