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Where Taxpayers and Advisers Meet

Cover warrants, spread betting and CGT?

karl2134
Posts:8
Joined:Wed Nov 03, 2021 5:26 pm
Cover warrants, spread betting and CGT?

Postby karl2134 » Wed Nov 03, 2021 5:49 pm

Hello all,

I've got a trading account with a German broker (the degiro chaps). I mostly trade bonds and ETFs with them but occasionally I go for a little adventure and buy/sell Covered Warrants and things they call either "Turbo Zertifikate" or "Faktor Zertifikate". These are basically leveraged products (some heavily so) and I am now trying to find out whether to include the gains and losses in my CGT calculations.

Alas, this area seems not as clear cut as one could wish. Some of these things seem to be CGT relevant, other perhaps not. Or perhaps they are. It seems it all depends on whether a certain instrument is classified as Spread Betting (no CGT exposure) or not (CGT relevant). How can one find out which is the case? I assume calling HMRC and asking them will not bring much joy though I may try that as a last resort. But before I do so, perhaps somebody has some experience in this (mine-)field and can help me out. Thanks in advance!

Karl

karl2134
Posts:8
Joined:Wed Nov 03, 2021 5:26 pm

Re: Cover warrants, spread betting and CGT?

Postby karl2134 » Fri Nov 05, 2021 2:28 pm

At least partly trying to answer my own question... spread betting seems to be a British/Irish specialty. As the leveraged instruments I was talking about are created/sold/bought back by German banks (or German subsidiaries), I'd think that they will not qualify as CGT exempt. Of course, I may be totally wrong.


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