CFD Trading Loss Reporting UK

[Mike47]

I am sorry for asking this too close to the deadline for UTR registration.

I had some retail trading activity for Gold CFDs as an individual in the last taxation year.

The account was funded with GBP 2000/-, and the trading activity resulted in a loss of about GBP 700/-.

I wanted to register for a self assessment to claim back the loss and settle against my employment income.

But in my research I am even more confused as to the application of the "badges of trade" criteria, and thus am baffled as to whether I should register for a UTR using the normal HMRC online portal as a sole trader or the SA1 paper form (as they trade account has been defunded since).

Whilst reading about this, I also stumbled upon an advice which stated that casual CFD trading might fall under speculation which need not be reported to HMRC provided it is not in a professional capacity.

Thanking in anticipation for a quick reply!

Cheers
M

[bd6759]

It’s a capital loss, not an income loss.

The loss can be set against future capital gains, but you need to tell HMRC about the loss within 4 years.

[Mike47]

It’s a capital loss, not an income loss.

The loss can be set against future capital gains, but you need to tell HMRC about the loss within 4 years.

Thank you for your reply.

I thought day trading would be treated as trading income/loss.

Given that it’s a capital loss which can be reported within 4 years, do I apply need to file a self assessment if one decides not to claim it?

Cheers

[bd6759]

You don’t need to do anything if you don’t want to claim the loss, but why wouldn’t you? If you don’t notify the loss, you can’t use it.

You don’t need to submit a return to notify the loss.