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Where Taxpayers and Advisers Meet

Tax treatment of futures and options trading

vinci
Posts: 2
Joined: Sat Sep 26, 2015 2:53 am

Tax treatment of futures and options trading

Postby vinci » Sat Sep 26, 2015 2:56 am

I live in UK and I see that there are 2 taxes when trading:

- CGT to be paid on capital gain and is 18% or 28% depending if you are basic tax payer or not
- income tax on any interest or dividend received

But what happens if I trade options and futures? Please not that I'm not referring to binary options or spread betting that are exempt but to those contracts that are listed on exchange (i.e. the Eurostoxx futures and options that are exchanged on the Eurex market).

If I generate a profit when trading these contracts what is the the tax that has to be paid? Is it CGT or income tax? Or something else?

I can't find clear explanation on the HMRC website. Can you please give me some advice?

Thank you.

King_Maker
Posts: 6538
Joined: Wed Aug 06, 2008 3:22 pm

Re: Tax treatment of futures and options trading

Postby King_Maker » Sun Sep 27, 2015 11:23 am

The cynical answer is HMRC will treat the activity as liable to CGT, if there are Losses - and Income Tax if there Profits/Gains. :roll:

vinci
Posts: 2
Joined: Sat Sep 26, 2015 2:53 am

Re: Tax treatment of futures and options trading

Postby vinci » Sun Sep 27, 2015 10:36 pm

Hi, thanks for the reply. Where did you read this? Any reference?

King_Maker
Posts: 6538
Joined: Wed Aug 06, 2008 3:22 pm

Re: Tax treatment of futures and options trading

Postby King_Maker » Mon Sep 28, 2015 10:08 am

Hi, thanks for the reply. Where did you read this? Any reference?
Through many years dealing with HMRC.


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