UK Tax on Stock options trading


Hello All. I’m new to this forum. I’m UK resident. I want to trade in stock options in the US markets. I’m thinking of using Interative brokers as they provide some advanced tools for analysis. I have not used them but please suggest anything better. My main question is the tax treatment on profits from Options buying or selling. Will it be treated as Capital Gains ? Any information will be helpful from anyone who is already trading in options and paying taxes in the UK to share some insight.


You may be better asking a tax professional as they will be able to give you advice based on exactly how you are intending trading them. Without knowing that (and in my view), profits are viewed as capital gains and as such liable to capital gains tax.


Active member
It depends on several variables @Gman11 but assuming its not your primary source of income, a good accountant should be able to determine that profit is taxed as capital gains and not income.

Let us know how you get on.


Well-known member
capital gains tax buddy, assuming you are trading as yourself and not through a company
you get an allowance to take into account
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