UK taxation for futures and options trading

[Atikon]

I'm not reading this, spread betting tax advantages will swallow any alpha you will find in the futures market

 

[globalarbtrader]

I'm not reading this, spread betting tax advantages will swallow any alpha you will find in the futures market

Spread betting is more expensive though.

GAT

 

[ZBZB]

Never yet met an accountant who understand options- but for tax it's simple P&L . Turnover minus allowable deductions, don't ever try to explain options to HMRC!

Hopefully it is profit minus expenditures. Not the underlying contract size!

 

[Windlesham1]

Turnover is the actual money going through your account - so you might sell a put for 20 but have to buy it back for 30, but you roll it and take in 40, then close that out for 15. That is the simplest options trade I can think of! Try explaining strategies to HMRC and you will be arrested for heresy.

 

[ZBZB]

Turnover is the actual money going through your account - so you might sell a put for 20 but have to buy it back for 30, but you roll it and take in 40, then close that out for 15. That is the simplest options trade I can think of! Try explaining strategies to HMRC and you will be arrested for heresy.

so the profit or turnover is plus 15?

 

[Windlesham1]

Turnover is 20+30+40+15= 105 but profit is 15 as I inderstand it. Turnover is money in and out

 

[ZBZB]

Turnover is 20+30+40+15= 105 but profit is 15 as I inderstand it. Turnover is money in and out

How are you taxed on turnover then? Sounds crippling.

 

[Windlesham1]

you are taxed on profit-keep up!

 

[Atikon]

Spread betting is more expensive though.

GAT

How much of your pnl is comission and fees? Is it >45%(top tax rate UK)

 

[Windlesham1]

Not at liberty to say about comms- but it's really nothing when I have an old fashioned phone broker who works orders for me -often to market makers. Online my choice is Saxo or IB and Saxo don't even allow spreads