Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Wed, 02 Nov 2022 14:33:00 GMT by Joe Fong
I am retired and trade regularly in various financial instruments including stocks, bonds and foreign exchange futures and options. I did about 100 trades per month under my own name via online broker platforms. My investment horizon combines both short-term and long-term with the holding period of my securities from a few days to a few years. Day trading is rare. While I consider myself as a private investor, I was wondering if HMRC would classify me as a trader or self-employed given my trading pattern. I understand this will decide whether my profits are to be reported as capital gains or income in my self assessment. Could you shed some light on this please?
Posted Fri, 04 Nov 2022 15:28:25 GMT by
Hi Joe Fong,

There are a number of factors (badges) that indicate whether someone is trading for tax purposes these are set out in BIM20205: Meaning of trade: badges of trade:
summary.

In most cases where an individual invests only their own money in transactions this will be taxable under the capital gains regime: 

BIM20205 - Meaning of trade: badges of trade: summary















 

You must be signed in to post in this forum.