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Posted Mon, 17 Jun 2024 17:19:33 GMT by Jackflood572
I have researched and not found a good answer to my question so I hope someone can help out. If I am actively buying and selling stocks daily, am I classed as a "day trader" for tax purposes and the 30 day rule doesn't apply? Is there such a thing as being classed as an "active trader" for tax purposes? If this is not true and the 30 day rule does apply, what is the specific procedure for avoiding the tax implications of the 30 day rule when day trading? For example, lets say I trade stock XYZ every trading day, buying and selling multiple times per day. Do I have to just not trade that specific stock 30 days prior to the end of the tax year? If I am misunderstanding, please explain to me specifically how the rule applies using the example above because I can not find clear information anywhere.
Posted Tue, 18 Jun 2024 14:27:13 GMT by HMRC Admin 17 Response


Hi ,
 
please refer to https:

www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg13350  

www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg13360 

and

www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg13370  .

Thank you .

 
Posted Tue, 18 Jun 2024 15:46:53 GMT by Jackflood572
I have read these page prior to my question and it's all still quite vague to me. Is there anything more specific you can give me, relating to my question above? The 30 day rule is pretty clear to me for investments but for active trading I am unsure. Is there such a thing as being classed as an "active trader" for tax purposes?
Posted Mon, 24 Jun 2024 09:11:35 GMT by HMRC Admin 21 Response
Hi Jackflood572,
It is up to you to make that decision, based on the facts of the case.  
Have a look at BIM20205 - Meaning of trade: badges of trade: summary.  Consider such things as, is this your sole occupation or do you have other employment to suggest you do not trade purely to make a living?
Thank you.
 

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