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Where Taxpayers and Advisers Meet

Spread Betting & CFD Trading Full Time & Income Tax Rules

tax2015
Posts:9
Joined:Wed Jan 28, 2015 8:49 pm
Spread Betting & CFD Trading Full Time & Income Tax Rules

Postby tax2015 » Wed Jan 13, 2021 4:42 pm

I am hoping someone can answer / confirm the following:

If you trade CFDs full time and earn £150k per annum as a Ltd company, am I right in saying you would pay taxes in the same way as if your Ltd company was undertaking any other general business trade in the UK. In other words you would need to submit your profits and losses to Companies House and HMRC each year in accordance with their rules. Is that correct?

If that is correct - please answer me this - If you also earned £100k per annum in the same year, so you are basically trading CFDs and spreadbetting - would HMRC deem that your Ltd company was your main source of taxable income and the spreadbetting profits are all tax free because they are not your sole source of income.

I haven't seen anyone ask this question. I personally think that this legally should be accepted by HMRC.

Are there any accountants who can confirm that you can both trade CFDs and spreadbets at the same time and keep the spreadbetting profits tax free?

tax2015
Posts:9
Joined:Wed Jan 28, 2015 8:49 pm

Re: Spread Betting & CFD Trading Full Time & Income Tax Rules

Postby tax2015 » Wed Jan 13, 2021 4:46 pm

I am hoping someone can answer / confirm the following:

If you trade CFDs full time and earn £150k per annum as a Ltd company, am I right in saying you would pay taxes in the same way as if your Ltd company was undertaking any other general business trade in the UK. In other words you would need to submit your profits and losses to Companies House and HMRC each year in accordance with their rules. Is that correct?

If that is correct - please answer me this - If you also additionally earned £100k per annum by spreadbetting in the same year, so you are basically trading CFDs (£150k) and spreadbetting (£100k) - would HMRC deem that your Ltd company was your main source of taxable income and the spreadbetting profits are all tax free because they are not your sole source of income.

I haven't seen anyone ask this question. I personally think that this legally should be accepted by HMRC.

Are there any accountants who can confirm that you can both trade CFDs and spreadbets at the same time and keep the spreadbetting profits tax free?
I cannot find the EDIT button so adding a reply to clarify the question:

I am hoping someone can answer / confirm the following:

If you trade CFDs full time and earn £150k per annum as a Ltd company, am I right in saying you would pay taxes in the same way as if your Ltd company was undertaking any other general business trade in the UK. In other words you would need to submit your profits and losses to Companies House and HMRC each year in accordance with their rules. Is that correct?

If that is correct - please answer me this - If you also earned £100k per annum in the same year, so you are basically trading CFDs and spreadbetting - would HMRC deem that your Ltd company was your main source of taxable income and the spreadbetting profits are all tax free because they are not your sole source of income.

I haven't seen anyone ask this question. I personally think that this legally should be accepted by HMRC.

Are there any accountants who can confirm that you can both trade CFDs and spreadbets at the same time and keep the spreadbetting profits tax free?

tax2015
Posts:9
Joined:Wed Jan 28, 2015 8:49 pm

Re: Spread Betting & CFD Trading Full Time & Income Tax Rules

Postby tax2015 » Wed Jan 13, 2021 4:48 pm

3rd time lucky - not sure where the Edit button is on this, Admin please delete the previous two posts, thanks

I am hoping someone can answer / confirm the following:

If you trade CFDs full time and earn £150k per annum as a Ltd company, am I right in saying you would pay taxes in the same way as if your Ltd company was undertaking any other general business trade in the UK. In other words you would need to submit your profits and losses to Companies House and HMRC each year in accordance with their rules. Is that correct?

If that is correct - please answer me this - If you also additionally earned £100k per annum by spreadbetting in the same year, so you are basically trading CFDs (£150k) and spreadbetting (£100k) - would HMRC deem that your Ltd company was your main source of taxable income and the spreadbetting profits are all tax free because they are not your sole source of income.

I haven't seen anyone ask this question. I personally think that this legally should be accepted by HMRC.

Are there any accountants who can confirm that you can both trade CFDs and spreadbets at the same time and keep the spreadbetting profits tax free?

david66
Posts:7
Joined:Fri Jan 22, 2021 7:03 pm

Re: Spread Betting & CFD Trading Full Time & Income Tax Rules

Postby david66 » Tue May 04, 2021 8:49 am

You may have more luck asking here. Most accountants I have spoken to don't have much experience with traders' finances.

https://www.elitetrader.com/et/threads/uk-taxation-for-futures-and-options-trading.290262/page-4


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