Relevant property trusts "spread betting" CGT question

[Andrew01]

Hello Trust forum

Hopefuly this is the right forum, or should i be posting under CGT forum?

"Spread betting"(similar financial product as futures) profits and losses are not subject to CGT for an individual.
What if a relevant property trust that makes gains or losses using spread betting would these gain or losses not be subject to CGT as is the case for an individual?
I get the feeling a Settlement would have pay CGT as is not an individual.

Thank you
Andrew

[AGoodman]

There's no reason why it should be treated any different but:

(a) generally speaking, the idea of trustees spread betting sounds horrific.
(b) there may be slightly more chance that it could be considered trading (which is always a risk) and therefore profits subject to income tax

[Andrew01]

Hello AGoodman

Thank you for your reply.
I agree it sounds horrific for Trustees to use spread betting, as they are nomaly treated as gambling by HMRC
However it could be used to syntheticaly follow a portfolio eg FTSE100 and loop hole round CGT, but as you say,
this may then be deemed trading by HMRC and looks like income tax maybe payable in this case.