This section is focused on tax planning articles for anyone investing or trading in CFD's or Futures.

As well as looking at when you'll be classed as a CFD/Futures trader or investor for tax purposes we also look at how you can reduce both income tax and capital gains tax on your CFD's & Futures trading/investing.

Latest Articles on CFD's & Futures Futures Tax Implications Question: I am currently a company backed trader on a 18% tax regime. However my circumstances are about to change and I am about to become a self-backed trader at a different company in London. I trade outright futures contracts in both bonds and equities and need to advice on sole trader status vs setting up a company, or whether there are alternative tax choice . . . keep reading Using an LLP corporate partnership structure to reduce tax on trading profits With the rise in the rate of income tax from 40% to 50% next year using a corporate partner/LLP structure could be an option for traders looking to reduce tax. . . . keep reading Tax advice on CFD's Question: I have read a lot of information on your web-site and am a bit confused about whether my CFD buying would be treated as an "investment" or "trade". I am a full time Sch E employee in a bank earning c£100k p.a. Throughout this year in my spare time I have invested a significant amount in CFDs. I have built up a sizeable CFD position of c£1.6m (across about 30 different companies) and I currently have realised a significant unrealised profit of c£400k. I also have realised losses of c£60k from Q4 last year. I would classify myself as an investor because I plan to hold the CFDs for the long term (rather than a series of short term trades), and have not really sold any of my CFDs (other than some small holdings that were sold due to stop-losses being activated etc). Given the above circumstances, do you think HMRC would view me as an investor or trader? . . . keep reading Traders & Investors Returning To The UK After Living Overseas When you return to live in the UK after living and/or working overseas you'll need to pay careful attention to the tax position, particularly in relation to your investments. In this article we look in detail at the tax position for investors and traders returning to the UK . . . keep reading Using CFD's to avoid the 'bed & breakfast' rules As well as trading or investing in CFD's directly they can prove useful in tax planning for any other financial investments. A common tax planning strategy is to use CFD's to avoid the 'bed & breakfast' rules . . . keep reading UK tax on a bear call spread A bear call spread is a popular trading style where you have a negative, bearish view of the market. This article looks at the income/capital gains tax implications of a bear call spread . . . keep reading Example CGT calculations on CFD's If you're investing in CFD's and are wondering how capital gains tax will apply to your profits this article will answer your questions. It explains how CGT applies to CFD's and include some examples illustrating the CGT position . . . keep reading How traders can use a corporate partnership to avoid the new 50% tax charge Many traders will see their tax bills increase substantially with the advent of the new 50% rate of income tax from April next year. In this article we look at how using a partnership/LLP structure with a corporate partner could substantially reduce the UK tax liability on trading profits . . . keep reading Using options and futures to hedge risk and can it affect your tax status? If you're dealing in financial futures, options, or CFD's you'll need to determine whether you are a financial trader or a financial investor. This will have a crucial impact on how you're treated for UK tax purposes. This article looks at the tax status of anyone dealing in CFD's, Options or Futures and how using these derivatives to hedge your portfolio risk will effect this . . . keep reading Investing in CFD's & Options via a property investment company to reduce tax If you own a property investment company there could be significant tax advantages from investing in CFD's/Options via the company as opposed to personally. This article looks in detail at the tax implications for anyone using a property investment company to invest in CFD's/Options . . . keep reading More

CFD/Futures Tax Planning