"An activity of buying and selling shares and other financial instruments undertaken by an individual will normally amount to investment or speculation falling short of trading unless there are factors which take the case ‘out of the norm’... " (the word "trading" here means trading as a business)
Supplementary guidance on how to check tax calculations or work out the trading profits of a business for Self Assessment tax return.
This means even with CFDs, Options, Futures or direct Shares an individual will normally not be liable to income tax no matter how many transactions they've made, it is only capital gains tax they have to consider. Spread-betting would normally be exempt from both - that is the difference.
"Though the terminology used in spread betting frequently echoes that of the derivatives market, no assets are acquired or disposed of and no chargeable gains or allowable losses arise from spread betting"
This manual is to help people compute chargeable gains (and allowable losses) for both capital gains tax and corporation tax purposes or check computations. It supplements the basic guidance in the tax return and Help Sheets. It is written primarily for HMRC staff but it will also assist...