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Offshore company formation for traders & investors
Which of the following best describes your tax treatment?
Share Trader
Share Investor
Forex Trader
Forex Investor
CFD/Futures/Options Trader
CFD/Futures/Options Investor

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    Trading v Investment

    In this department we include articles that relate to the determining whether you're a trader or an investor for tax purposes.

    This can have a huge impact for tax purposes, as investors are subject to capital gains tax whereas traders are subject to income tax (and also potentially national insurance)

    Should you be a trader or investor now that the top CGT rate has increased to 28%?
    Should you be a trader or investor now that the top CGT rate has increased to 28%? With the increase in the rate of CGT it makes sense to reevaluate your tax status. In this article we look at a schedule comparing the tax payable for traders and investors at different profit levels . . . keep reading
    Financial trader or investor after the 22 June Emergency Budget?
    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
    Using options and futures to hedge risk and can it affect your tax status?
    11/09/2009
    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
    Will I be taxed as a forex trader if its my only income?
    Will I be taxed as a forex trader if its my only income? As you're no doubt aware there are two broad options for being taxed on your forex profits. You could either be a forex trader or a forex investor.For tax purposes the difference is crucial as a forex trader will be subject to income tax, whereas a forex investor will be subject to CGT. This article looks at whether you could be classed as a forex trader if forex profits are your only source of income . . . keep reading
    When is it worth being classed as a share trader to reduce your taxes?
    When is it worth being classed as a share trader to reduce your taxes? Usually being classed as a share investor, as opposed to a share trader would be beneficial for tax purposes. However, this is not necessarily so. This article looks at when it can be advantageous to be classed as a share trader to reduce your UK tax charges . . . keep reading
    Are frequent buyers and sellers of shares classed as traders or investors for tax purposes?
    Are frequent buyers and sellers of shares classed as traders or investors for tax purposes? Determining whether you are a share trader or investor is crucial for tax purposes. This article looks at whether you are necessarily a trader if you are frequently buying and selling shares . . . keep reading
    The badges of trade & investing/trading in shares
    The badges of trade & investing/trading in shares HMRC will look at 'badges of trade' to determine whether an individuals activity is trading or investment in nature. This will apply just as much to determine financial trading as non-financial trading. This article looks in detail at the position of anyone buying and selling shares and how the badges of trade may apply to them to determine their tax status . . . keep reading
    Day Traders & Investor Status for Tax Purposes
    Day Traders & Investor Status for Tax Purposes Before the 2008 budget for most share speculators there were not significant differences between share trader and share investor status. This article looks at trader v investor status for day traders taking account of the 2008 capital gains tax changes . . . keep reading
    Are you trading or investing in options, and futures?
    Are you trading or investing in options, and futures? The tax legislation makes it clear that there are only two options for how any profits from options and futures can be taxed. If it can't be classed as income from a trade then it's capital gain. This article looks at when you will be trader or investor in options and futures . . . keep reading
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