UK taxation for futures and options trading

Discussion in 'Options' started by the learner, Mar 13, 2015.

  1. But it costs a lot more than trading futures. And there are other disadvantages of trading OTC.

    GAT
     
    #41     Oct 25, 2020
  2. tomorton

    tomorton

    What do you mean by spreads on options, in this context?
     
    #42     Oct 25, 2020
  3. tomorton

    tomorton

    True. When I started trading I just didn't have the capital to trade futures. Would you even recommend starting in futures to any new trader though?
     
    #43     Oct 25, 2020
  4. It's unlikely that a new trader will have the six figure capital needed. TBH most new traders would be better off staying away from leveraged / derivatives altogether. In the US I'd say trade large cap stocks to begin with, though direct investment in stocks in the UK is a tad expensive.

    GAT
     
    #44     Oct 25, 2020
  5. Example an option might be quoted 18-20.5 on ICE.com but it'll be 16-22 on IG. Hard to keep an edge unless you are strangling and holding for a few weeks - not for me.
     
    #45     Oct 25, 2020
  6. Ken S

    Ken S

    Thanks all, for the input. Here is something I found on the HMRC site which seems to indicate that capital losses can be carried forward for up to 4 years currently
     
    Last edited: Oct 25, 2020
    #46     Oct 25, 2020
  7. You do not have to report losses straight away - you can claim up to 4 years after the end of the tax year that you disposed of the asset. That's only a one off for the next tax year though- same with income tax self assessment. I see no use in trying to revenge trade this year, so I'm letting my losses take care of 21/22 when I will trade in size again.
     
    #47     Oct 25, 2020
  8. tomorton

    tomorton


    UK spreadbetting firms and brokers are now required by the regulator to offer only 1:30 leverage on the forex majors, 1:20 on almost everything else. I haven't heard this has pushed any established traders out but its certainly a disincentive to the young guys who come in with 500 quid and an attitude. (I was never one of them you understand.......)
     
    #48     Oct 25, 2020
  9. tomorton

    tomorton


    Yes indeed, but I wasn't perhaps clear, I'm talking about spreadbetting, not traded options.
     
    #49     Oct 25, 2020
  10. Elder

    Elder

    Sorry, just to be clear, are you saying that you can carry forward losses For 4 years even if you are subject to income tax and not cgt on your trading?
     
    #50     Oct 25, 2020