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.

[Mike47]

Hello Everyone:

A very happy New Year to everyone.

I am grateful for the selfless people helping us with these convoluted taxation matters.

I want to file my self assessment; primarily to report the Capital Loss made with CFDs.

Just needed a few clarifications:

Did you dispose of chargeable assets worth more than GBP49,000?

Should we answer "yes" if the sum aggregate of all CFD transactions is greater than this amount? Or Can we say "No" given that no single transaction was over this amount?

You must provide a Capital Gain Computation for each disposal of an asset which is not an exempt asset.

There were numerous small CFD transactions; would each of the transaction need to be computed individually?

Complete one worksheet for each asset disposed of (maximum of 20 worksheets). ...

If the transactions are more than 20 then how to we group them together?

I was expecting a SA108 style summary where I could sum all the transactions together, and then provide with supporting documentation from the broker for the transactions. But I believe SA108 is when filing a paper return.

Lastly, I cannot express my gratitude for the amazing people helping us!

Thank you.
M

[Mike47]

Hi Everyone:

Any help would be greatly appreciated.

Thanking in anticipation.

M