CFD earnings and tax

[Dr Phibes]

Misses and I have had a good run over the last few months and I was under the impression that CFD trading was classed as gambling therefore profits are tax exempt if this is not your primary source of income?

Does anyone have the definitive answer re tax, also what would be the case should your CFD income overtake your waged income?

Have looked on the HMRC site to no avail.

[ShadownINja]

It's definitely not classed as spreadbetting (financial spreadbetting is the tax-free product). I am sure CGT applies and should in any case be treated as profit that you would get from shares. As I understand it, CFDs are just a leveraged product.

Edited by ShadownINja on Saturday 12th June 16:22

[Eric Mc]

CFD?

[deeen]

CFD = contract for difference, my accountant advised me it is capital gain, for tax purpouses.

[Eric Mc]

Sounds like it would be covered by CGT to me as well - which is not all bad, especially if the overall gains in the year are below £10,000.

[Biggles111]

It is covered by CGT, I have traded these for around 2 years. If you have losses (as many do at some point!) they can also be declared on the CGT section of your return and so could be beneficial to offset against current or future gains.

[Dr Phibes]

Biggles111 said:

It is covered by CGT, I have traded these for around 2 years. If you have losses (as many do at some point!) they can also be declared on the CGT section of your return and so could be beneficial to offset against current or future gains.

Oh there have been losses as well, excellent thanks for all your help chaps.