CFD UK tax

[RobertGO]

Do you pay tax in the uk on profits from CFD's?

 

[davidjonesig]

Taxed the same way shares are i.e. as a UK tax payer you have an annual CGT allowance, profits over that are taxable

 

[RobertGO]

Thanks

 

[Black Jack]

Do you pay tax in the uk on profits from CFD's?

As far as I’m aware, yes you do.

When taking out a CFD you do not have to pay the full value of the shares. Typically you can pay between 10% and 25% of the actual value. You don’t pay stamp duty, unlike with share purchases, because you never actually own the shares. But you do pay capital gains tax on any profits as you do with normal share-buying.