Tax on trading CFDs

Hi I am using capital.com to trade CFDs such as sp500 and commodities, I have been using the trading app since September 2021, there are over 2500 transactions on the trading app. I have totalled up the profits and losses for the 2500 transactions since September 2021 and I have made a loss overall of £8,000. Do I need to report this? Also, another question, if I was to report it, would I need to detail all of the 2500 transactions from the trading app? What is trading cfd classed as, capital gains and losses? Thank you

Hi
You will need to report it to allow you to claim the losses to set against future gains.
This must be done within 4 years of the tax year in which they arise.
Yes you will need to provide some sort of breakdown to confirm the losses and these are from capital gains.
Thankyou.
Regards.

Hi, I have similar problem, I have made CFD (contract for Difference) losses of £13000+ in year 2022-23 with CMC markets. They have provided the details of all the transactions which runs into more than 100 transactions in shares, both UK and US market. I file my self assessment tax return every year. I want to know, where to show these losses in my self assessment tax return. Which areas should I tick when i go to " tailor your return" and where to fill all the data. Thanks Tarun

Hi
When tailoring your return, you should answer 'Yes' to the question about the disposal of chargeable assets/claiming a capital loss.
By doing so, you will be given access to the Capital Gains pages, where you should enter the appropriate figures under the sub-heading  ' Other property, assets and gains'.
You can enter your total Capital Losses for the year in Box 19 ('Losses in the year').
For more detailed guidance, please refer to the SA108 Notes and to HMRC's Cryptoassetts guide.                       
Capital Gains Tax summary notes                               
Check if you need to pay tax when you sell cryptoassets

Thanks HMRC team, unfortunately I cannot find box 19 (Losses in the year). I have completed the first two steps, as below 1. "If you disposed of any chargeable assets, or had any chargeable gains, or you wish to claim an allowable loss, or make any other claim or election, do you need to complete the Capital Gains section? Please check help before selecting - Yes" 2. "Other property, assets and gains'. But I cannot find Box 19 after that. At step second, they are asking me to complete 4-5 other things like dates of transaction, sell value and acquisition price. These transactions runs into more than 100 transaction. Can I upload the statement received from CMC market.

Hi TN,
Box 19 can only be found on SA108.
Capital Gains Tax summary
If you are completing your tax return online, then numbering is different.
You will need to select yes to choose the type of asset that resulted in the loss and save and continue.
One of the questions will be losses in the year.
Thank you. 

Hi, I have been trading in CFDs and made a total of 574 transactions in the 2022/23 tax year. I have them individually listed in an Excel file. I have a net loss of £64,379 as a result of my total trading. 460 of these resulted in profits (total £84,657) and 114 in losses (-£149,037). My questions are: - I guess, each of these transactions are what is called disposals in box 14 in the SA108 form. How am I supposed to submit these individual transactions (if I’m required to do so) to HMRC? - Do I enter £84,657 in box 26 and £149,037 in box 27? - Will there be any tax payable on the amount of £84,657 or will there be no tax payable because I made a net loss in the tax year? - What am I supposed to enter in boxes 24 and 25? Thanks for your help L

Hi, Ive been thinking of starting forex trading, im looking at using a forex bot want to know if it's legal? And what Tax would i be asked to pay as a day trader

Hi Levent Giray,
You declare totals on SA108, boxes 14 to 22 are for listing the number of disposals of 'other property, assets and gains', such as non residential property or assets.
Boxes 23 to 30 are for listed shares and securities and boxes 31 to 44 for unlisted shares and securities.
You will need to decide which are is appropriate for your CFd's.
In the appropriate section, you would show the total number of transactions you made, the total disposal value of all of the assets and the total allowable costs.
Where the allowable costs are greater than the total value, the difference is a loss, which you also declare.
You can include your spreadsheet breakdown as an attachment, to support your losses claim.
Capital Gains Tax summary Tax year 6 April 2022 to 5 April 2023 (2022-23)
Capital Gains Tax summary notes Tax year 6 April 2022 to 5 April 2023 (2022–23)
Thank you. 

 

Hi Peter Olorunnisola
Yes this is legal and any gains would be liable to capital gains tax

Hi is there a way I can send the excel spreadsheet online/e-mail or must hundreds of pages of transactions be printed off and sent in? Thanks

Hi,
Customers can send virus-free additional information as electronic PDF attachments when they file their SA returns online.
No other type of online attachments will be accepted by the department.
Full details of HMRC's policy in this regard are provided here:
SAM126040
Thank you.

Hi Levant Giray/HMRC This might be a bit late but I can confirm your CFDs should be in the 'other property and assets section as you don't actually own the share in real terms, you're trading on relative value differences hence it seems to a bit of a grey area, but they are 'other assets' (not crypto). Also you can set out your numerous trades in a spreadsheet and just put 1 Disposal in box 14 and aggregate gains/losses in boxes 17 and 19. Question My tax advisor at one point I think erroneously put my CFD trades for the year in boxes 23-30 (Listed shares) they also extracted dividends (or part dividends applied) during CFD trades and put them in the Dividends box of the Income section of the return which I think is wrong? So my question to HMRC friends is can you include any dividends applied in cfd trading disposals in the 'gains' box 17 rather than extracting them and putting them in the dividends box 4 of the Income section? (as they re not owned shares as explained above. Also please I assume that if I or Levant wish to make a claim for our losses (up to the maximum allowable CGT) then that goes in as a positive not a negative number I assume in box 19? Also do I need to make an election under code OTHR in box 20 if I want to carry over my losses to next year, Box 47? Sorry for the number of questions I spent 2 hours wiating for a call today.. Regards Philip

I have a question similar . Can I carry over my CFD losses to the following year after which it was incurred in my self assesment. I run another business, will my CFD losses be claimed against my profits of both CFD and other business?Thanks

Hi P Wright,

Contract for differences (CFDs) is defined as a contract the purpose or pretended purpose of which is to make a profit or avoid a loss by reference to fluctuations in the value or price of property referred to in the contract, or an index or other factor designated in the contract. You can see guidance here:

CFM50380 - Derivative contracts: relevant contracts: contracts for differences

They should be shown in the "Other property, assets and gains" section of SA108, capital gains, as it is for gains or losses on disposals of assets not covered elsewhere.  

The section for listed shares and securities relates to shares or securities from a company listed on a recognised stock exchange, shares in a UK open-ended investment company and units in a authorised unit trust.  You should claim losses under other (OTH) and describe the losses in the freehand box at the end of the capital gains section.

Thank you.

Hi Babajide Olayinka,
Please take a look at the guidance at CG56100 on contracts for difference.
CG56100 - Futures: financial futures: contracts for differences
Losses can be carried forward or set against other gains, but not income.
The losses should be declared in the listed shares and securities section as an open ended investment.
Thank you. 

Dear Admin, In order to fill in the gain/loss in the "Other property, assets and gains", it has to fill the disposal proceed and cost. However, trading in CFD does not buy/Sell the actual asset but only trade the contract difference which has only profit or loss at the end. How could we fill the disposal proceed while there isn't? Thanks.

Hi, I understand that you have to report your losses within 4 years of the tax year in which the losses occurred, but after I have reported my losses, how many more years can I keep deducting my losses against capital gains (is it an unlimited number of years)? Can I keep deducting the losses for more than 4 years once they have been reported? or is the 4-year period to notify HMRC about the losses also the period in which they have to be deducted before they expire? Thanks

Hi
Please refer to guidance at Shares and Securities and associated links.

Hi Amir277,
You have 4 years to report the capital gains lossess.
They can, however, be carried forward almost indefinitley.
Thank you.