Capital Gains Taxation

[fxyorky]

What are your thoughts? If you are a profitable day trader that trades futures. What is the best way to go about it for taxation. I live in UK but am mobile. Which countries have the lowest tax rates? Capital Gains etc... Your thoughts would be welcome.

 

[Lon Eagle]

From next April UK CGT is 18%.

But if you do a significant amount of trades or your trading income is a large % of your total income then all profits are treated as income not CG.

The most tax efficient way to trade in the UK is via a company set up.

 

[Businessman]

Quote from Lon Eagle:

From next April UK CGT is 18%.

But if you do a significant amount of trades or your trading income is a large % of your total income then all profits are treated as income not CG.

The most tax efficient way to trade in the UK is via a company set up.

Not sure if Lon Eagle is giving sound advice.

Under UK tax case law directional trading (better term is speculation) by an individual is considered to be closer to gambling than 'carrying on a trade'.
If you can show that you are purely speculating on price movements you should be able to claim CGT at 18%.

If you are hedging, market making, spreading or arbing then that is likely to considered a trade and income tax is more likey to apply.

If you are a directional trader talk to a good tax accountant or lawyer with expertise in this area, they should be able to advise on the pit falls to avoid and on how you need to present your activities if the revenue ask questions.