Futures Trading

[fiftyfifty]

I spotted this on HMRC website
Futures: futures closed out before maturity

I can't find any definition of a speculator or investor on their website and still haven't received a callback. If I make my living from trading futures then is it possible that this is a CGT activity rather than Income Tax? If not, is there any way to structure yourself to pay CGT rather than Income Tax?

 

[donaldduke]

I spotted this on HMRC website
Futures: futures closed out before maturity

I can't find any definition of a speculator or investor on their website and still haven't received a callback. If I make my living from trading futures then is it possible that this is a CGT activity rather than Income Tax? If not, is there any way to structure yourself to pay CGT rather than Income Tax?

Take legal advice.

But from all i have read: Speculative futures trading is liable to CGT not Income Tax.

But if you are making garanteed profits, like arbing or buying and selling from customers below market, those are more likely to be income.

 

[timsk]

I make my living from trading futures then is it possible that this is a CGT activity rather than Income Tax?

Hi 50:50,
Good question, but it's a grey area. I've written to HMRC asking them to advise me what my tax status is and what my liabilities are. I sent the letter on the 18th Feb' last, but I've not received a reply. When (if!!!) I do, I propose to post it on DD's thread, where this issue has been covered in some depth.
Tim.

 

[Gatesy]

Hi 50:50,
Good question, but it's a grey area. I've written to HMRC asking them to advise me what my tax status is and what my liabilities are. I sent the letter on the 18th Feb' last, but I've not received a reply. When (if!!!) I do, I propose to post it on DD's thread, where this issue has been covered in some depth.
Tim.

TImsk, what is DD's thread please?

 

[grantx]

50/50,

If you make your living trading futures, AND your recognised by the IR as bona fide trader, you'll pay income tax otherwise you'll pay CGT on gains above the CGT threshold.

Grant.

 

[fiftyfifty]

cheers for the replies.

 

[timsk]

TImsk, what is DD's thread please?

I've had a (long awaited!) reply to my letter of 18/02/08 to HMRC and posted it to donaldduke's thread:
http://www.trade2win.com/boards/tax...n-active-traders-benefit-new-18-cgt-rate.html
Enjoy!
Tim.