Tax Planning for
Shares, CFD's, Options, Forex & Futures
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Tax Calculators For Traders
Share/Forex Trader - Company Tax Calculator If you're a share/forex trader and are unsure whether to trade in your own name or via a limited company, this tax calculator should settle the issue for you. Just input basic details of your profits and it calculates and compares the total tax payable from trading in your own name as well as if you used a UK limited company . . . keep reading
Investor v Trader Tax Calculator Designed specifically for anyone trading or investing in shares or forex this new tax calculator calculates and compares your 2011/2012 tax bill on the basis you were classed as a trader or an investor . . . keep reading
Share/Forex Investor - Company Tax Calculator If you're undecided whether you can save tax by using a company, this tax calculator should help you decide. It applies for investors only (we have another tax calculator for traders), and it calculates your total tax bill if you invest in your own name, versus the tax payable if you used a UK company. . . . keep reading
Latest Tax Download
Special Report:How tax hurts your investments -- moving abroad to retain your wealth Tax advisers often look at complicated schemes involving offshore trusts and companies to allow UK residents to minimise taxes on their investments, however in many ways the simplest option to avoid or at least substantially reduce your taxes is to move overseas yourself. In this downloadable report exclusively for our Gold members we look at how taxes impact on your investments and how (and where) to move abroad to reduce these taxes . . . keep reading
Top Download
DOWNLOADABLE TAX GUIDE:Tax Planning For Forex Traders This tax guide is available only to our site members. If you're a forex investor or trader it makes essential reading and looks at some of the essential tax planning opportunities available to you. Topics covered include when you can use offshore companies, how to use a UK company to reduce taxes, what effect using an offshore forex broker will have on your UK taxes, top reliefs and exemptions to reduce your taxes and much more . . . keep reading
Tax changes in the Emergency Budget Well, the Emergency Budget has now come and gone. There have been a number of tax changes, however its fair to say he hasn't gone as far as many people thought . . . keep reading
Moving abroad to avoid the 50% rate of income tax The highest 'official' rate of income tax has increased to 50% as from 6 April 2010 (although there is a 60% effective income tax rate on income between £110K-£113K). In this article we assess how moving abroad can allow you to avoid the new 50% rate of income tax . . . keep reading
Financial trader or investor after the 22 June Emergency Budget? Most financial investors could be paying CGT at 40% or potentially 50% from next year. This certainly narrows the gap between trader and investor status, and in this article we look at how the change in the rate of CGT will make trader status more attractive. We also include a schedule showing the likely taxes payable for different profit levels under the new rules. . . . keep reading
Tax relief for CFD loss - USERNAME:AJ1 Tax Question: Hi , if i take a loss on the sale of a CFD position , can I confirm this is allowed to be written off against another captial gain not just a stock one. So if i make £4000 on a house sale and lose £4000 on CFD investment. This can be netted off against each other. . . . keep reading
CGT for CFD's Tax Question: Hi, can you tell me how interest , commission and dividends are treated against CGT tax. Can gains and losses here be netted off also? . . . keep reading
Disclosure of gains/losses on US Treasury Futures Tax Question: I speculate on US 10yr Futures in my spare time. For the last tax year(2010/2011) I have over 600 transactions. I've made a small loss and am looking to roll the loss to offset any CGT next year. I'm trying to figure out how to do this on my online self assessment form. Do I have to submit a separate worksheet for each transaction?...if the answer is yes then that's 600 worksheets...how do other investors cope with this issue of volume transactions?...any help appreciated . . . keep reading
Share/Forex Trader - Company Tax Calculator If you're a share/forex trader and are unsure whether to trade in your own name or via a limited company, this tax calculator should settle the issue for you. Just input basic details of your profits and it calculates and compares the total tax payable from trading in your own name as well as if you used a UK limited company . . . keep reading
Investor v Trader Tax Calculator Designed specifically for anyone trading or investing in shares or forex this new tax calculator calculates and compares your 2011/2012 tax bill on the basis you were classed as a trader or an investor . . . keep reading
Share/Forex Investor - Company Tax Calculator If you're undecided whether you can save tax by using a company, this tax calculator should help you decide. It applies for investors only (we have another tax calculator for traders), and it calculates your total tax bill if you invest in your own name, versus the tax payable if you used a UK company. . . . keep reading
Tax treatment of futures on non-recognised exchanges - USERNAME:W Hello, I am a resident for tax purpose in the UK (I am an individual and work in UK as employee). I had a lot of transactions only on the foreign stock exchange which was not recognised. Above transactions were only in derivatives - financial futures (cash settled contracts) - "contracts for differences" (HMRC Manual CGT CG56100 and CG56101). According to HMRC Manual CGT CG56043: Transactions in commodity and financial futures dealt in on a futures exchange which is not recognised will be liable to Income Tax (Case VI Schedule D). How to calculate profits or losses from my transactions if my above transactions fall within the income tax regime? 1. Which rules I must apply when match a disposal of futures contracts with an acquisition of futures contracts (or vice versa) from my transactions? May I apply FIFO method to matching disposed futures contracts with acquired (or vice versa))? 2. What is disposal proceeds and allowable costs for derivatives transactions - financial futures (cash settled contracts) - "contracts for differences" in the case capital gains and income. In my opinion disposal proceeds from financial futures (cash settled contracts) is payment (credited to the account) based on the increase in the value between entering into the contract and closing out the contract (in the case long position), while allowable costs are losses (debited from the account) based on the decrease in the value between entering into the contract and closing out the contract (in the case long position) and commissions, and fees for the brokerage account. Am I right? I would be grateful for answers to my questions asap. Thanks in advance for help. W . . . keep reading
Sale of rights and CGT Tax Question: I received 2 for 3 shares @ 2.25 per share. I had 5600 shares @ £1.75 per share. I received £5459.74 in mar 2009. as part of rights not taken up. What is the capital gain. . . . keep reading
Calculating capital gains for CFD's Tax Question: Please could you give me advice on my tax return for 2010-2011. I have recently been dealing frequently in cfd's and the problem is that I have multiple trades in the cfd's of several companies, with in some cases more than 20 trades annually and applying share matching rules would be very complicated. Nearly all of the trades, approx. 150, would be involved and it would seem to be impossible for me to do personally. There seems to be two different views about calculating capital gains for cfd's. The first is that cfd's are a fungible asset and should be treated as such by applying share matching rules. The second view is that you can take all of the debits and credits and net them off to arrive at a net annual debit and net annual credit and hence derive a net capital gain. To do the latter would be very easy and would simply involve getting an online printout of my account. Would this be acceptable to the HMRC? Incidentally, in case it is relevant, I made an overall loss. . . . keep reading
This useful tax calculator will tell you if you will be UK resident or not based on your specific circumstances and the information you input. It incorporates the latest draft guidance issued by HMRC that applies from April 2013. . . .
UK Banks, Trading & Residency Tax Question: Dear Traders Tax Club, I have just read your article on, 'Tax treatment of non resident traders & investors using UK bank accounts'. Which I found very helpful up to a point. I have worked overseas as an aid and development worker since 1998 and been a non-uk Residence since that time. Before that I worked in the voluntary sector and was classed 'self employed' - however, I never generated enough income to pay UK Tax. So I have not had any dealings with the UK Tax system since 1992. In 2009 I decided to start a business, this actually got UK registered in September 2010. But in 2009 I set up a share trading account with my bank HSBC. I was informed that to do this I would need to be UK resident - also to start a UK registered company I would need to be UK resident. But according to my accountants I have not been in the country (UK) for more than my 92 days, therefore am still technically non-resident. But because I thought I had to be I opened an HSBC Share ISA. ( I've been on a steep learning curve about financial matters - this seemed to make sense if I an UK resident). So I think I have a legal problem as for the last two years I have held these accounts with HSBC. The bank keeps asking me about my residency... and I am now very confused. Every UK share trading site I have investigated asks me if I am UK Resident. So whilst your article would suggest that it is possible to trade shares from any where in the world, which trading site should you use?? Because you can't use a UK one or have a UK bank account. Please can you help? Yours very hopeful yet, quite confused, . . . keep reading
HMRC knowledge Tax Question: Hello, Can you tell me how much the HMRC actually knows about anyone's trading accounts unless the person is truthful in the first place. Do the banks get involved if x amount of thousands of pounds start going in on a regular basis from your broker compared to your day job. . . . keep reading
Shorting and the bed and breakfast rules Tax Question: Generally speaking, when reading the capital gains manuals, should one assume acquisition and disposal are reversed for short positions? So, for the Bed and Breakfast rules, if you have a short position and then exit it and reenter it in less than 30 days then the purchase (exit) should match up with the second short (reenter)? And there will be a short pool similar to the usual one? Thank you. . . . keep reading
2011 Budget Summary The most significant changes in today's Budget, as they'll effect our members, are planned to apply from April 2012. By and large the changes applying for the 2011/2012 tax year are relatively minor, with the exception of the increase in the Entrepreneurs Relief limit. In this article we look at the main changes for TTC members . . . keep reading
Mark to market basis for futures? Tax Question: Hello- Example security: S&P 500 e-mini futures, trades in USD on the Chicago Mercantile Exchange Background: There are daily Mark-to-Market cash transactions where the P&L on the position enter/leaves my account. This is not the same as margin. The exchange re-novates the position daily (a bit like closing and re-opening, in a sense). 1) When calculating the average cost of FX transactions should I treat these cash movements as acquisitions and disposals of non-GBP currency? It seems like it as the USD are actually entering/leaving my account. 2) Ignoring the FX aspect: Should the daily novation be treated as exit and re-entry for CGT P&L thereby leading to the equivalent of mark-to-market at the end of the tax year (instead of only paying CGT at time of disposal)? [as an aside, futures tend to be assessed on a mark-to-market basis for US taxes] Thank you . . . keep reading
Spread betting tax questions Tax Question: A) Whilst working full time for an employer & I did spread betting, would any gains from SB be liable to tax? B) If I worked part time for an employer & carried out SB part time. Example - 3 days a week, would any gains from SB be liable to tax? C) If I never worked for any employer & did SB full time, then would any gains from SB be liable to tax? D) What parameters do HMRC look at to define someone as a professional share trader OR can they state as you earn a living from SB as a full time income & have no other income can this be liable for tax as they can deem someone as a professional ? Or do they see any income from SB as Gambling & not deem it as taxable under their HMRC laws? E) What if for example I was able to earn £50k pa from SB -- can this be still tax free? . . . keep reading
Options trading and UK tax Tax Question: Can you please advise how options trading on the S&P 500 on a monthly basis, in a US$ trading account is taxed in the UK, and where it should be put on the tax return? For example, if I placed $10k into a trading account, and over the year some trades lost and some won, and at the end of the year I had $11K, how do I disclose this in my tax return, capital gain or trading income? How would an auto-trade account on the US S&P 500 (which effectively copies someone else's trades) be taxed in the UK. i.e. will it be cgt or trading income. There are several call and put options traded each year, generally on a monthly trade. please reply asap . . . keep reading
Tax treatment of spread betting income Tax Question: I want to start spread betting as a full time job, could you tell me the best way to arrange the taxes? is the income from spread betting going to be taxable? do i need to have a part time job? thank you for reply . . . keep reading
Non dom and £55,000 limit Tax Question: As I understand it; a transfer e.g.of cash from a uk-dom spouse to a non-uk dom spouse is treated differently compared to vice-versa..in this case only 55000 pounds can be transferred during lifetime from a Uk-dom spouse to a non-dom spouse. However if the UK dom spouse had no funds of their own to begin with and the non-dom had then deposited a large amount of overseas capital in the joint UK bank account..( and it can be proven by evidence that the overseas funds orginated from the sole overseas account of the non-dom spouse) ; can a subsequent larger transfer e.g 100000 from the UK joint account back to the Non-dom sole overseas account be regarded a exceededing the 55000 limit in this case ? (the funds after all belong to the non-dom spouse albeit deposited in the UK joint account ?). . . . keep reading
Trading ETF's via a UK company Tax Question: If using a company to trade US ETFs is there a danger this would be seen as a Close investment company with higher corporation tax liabilities or a trading company with rates at 20% from next April? These would be short term trades but not day trading, at least initially. Presumably investment in normal shares or forex as an addition will not alter the company status? My concern is that if it is a close investment company then losses will only be set against capital gains within the company (of which there will be none) whereas the gains would be subject to corporation tax. If a trading company both myself and my wife would be shareholders and extract monies by way of a smallish salary and dividends. Would there be entrepreneurial relief due on its closure? . . . keep reading
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Shares, CFD's, Options, Forex & Futures
Share/Forex Trader - Company Tax Calculator
Investor v Trader Tax Calculator
Share/Forex Investor - Company Tax Calculator
Special Report:How tax hurts your investments -- moving abroad to retain your wealth
DOWNLOADABLE TAX GUIDE:Tax Planning For Forex Traders
Using a company will be even more attractive for property and financial investors after the increases in the Emergency Budget
Tax changes in the Emergency Budget
Moving abroad to avoid the 50% rate of income tax
Offshore bonds now more attractive after CGT and income tax changes
Financial trader or investor after the 22 June Emergency Budget?
