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Posted Mon, 15 Nov 2021 09:26:01 GMT by Richard Thomas
If I was to change my employment status to a full-time cfd forex trader what would the tax implications be? Many thanks.
Posted Mon, 15 Nov 2021 15:23:54 GMT by HMRC Admin 17

It will depend on what your income status was before.

This is is self employment trade and not persoonal investment then this would be declared for income tax.

If this is not a trade then this would be reported as capital gains. 

Thank you.
Posted Mon, 15 Nov 2021 15:48:58 GMT by Richard Thomas
I am currently employed full time (not self employed) but will leave the post and only be a trader - so can I confirm that I will only be liable to pay capital gains tax if this happens? Many thanks.
Posted Tue, 16 Nov 2021 15:20:24 GMT by HMRC Admin 29

You would need to check if the trading is classed as a business or just personal gains.

If it is a business then this would be reported as self-employment income. If this is for personal gains then this would be reported for Capital Gains Tax.

You can find further guidance to check if you are trading or not here: 

BIM56840 - Financial traders - instruments and shares: the badges of trade

BIM20200 - Meaning of trade: badges of trade: contents

Thank you.

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