Question: I have significant capital gains from CFD investing, well above the CGT threshold, and since I tend to trade very frequently, I hope to continue making crystallised gains on a regular basis. I have gains for both the past and the current tax year. I have no income, being a full time student. How do I transfer 50% of the assets to my spouse to effectively use her CGT allowance as well as my own? As a student, I am not effectively using my lower rate income tax allowance. Are there any methods to have some gains classed as income? For example, could I short an equity via a CFD over the dividend period whilst being long the physical equity? I would recognise the dividend via the physical equity (income), and generate a loss inside the CFD (which would not be recognised as a dividend, but a capital loss), the two positions would offset and yield no net gain. However, the positions would have to be large compared to the dividend value. . . . (to read the remainder of this article, please log in below.)
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at 'YourTradingEdge' magazine and the author of 'The Investors Tax Bible'
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