Gain and losses in day trade for index

Hi HMRC, Just to recap all conversation above. In short. A. We should keep the record of daily gain & loss from trading in spreadsheet with 3 columns, "date", "gain", "loss" B. Tax return via self assessment is required if total capital gain (total sum of the gain column) from trading is over 49200 regardless the loss. C. The capital loss can be reported in SA108 of self assessment D. We should attach the spreadsheet as PDF in self assessment as reference. Scenario to confirm the interpretation: 1. John traded stock, futures, options of Uk, US, Europe in normal trading account (non-ISA) as retail individual (no registered company). 2. Throughout the tax year, John made capital gain £51000 from trading, but loss £84500 accumulatively. 3. John have no other source income. Question 1: John would need to report the capital gain £51000 in self assessment as his total gain is over £49200. Right? Question 2: John would need to report the capital loss £84000 in SA108 as his capital loss. Right? Question 3: Roughly how much John would need to pay for tax in such a case? Really appreciate HMRC for prompt response all the time.

Hi narrator

You need to report gains and losses separately. as you have not previously reported anything, and yes you should leave that part blank.

Thank you

Hi steveoreo,
How you keep your records and their format is up to you.  
We cannot comment on scenarios, only provide general information / guidance in this forum.
Thank you.

Hello can you help me, If I have a limited company , and do day trading as a separate entity, how do I file returns? 1) if I keep my incomes separate, can I somehow supply my information on my limited company self assessment? Under capital gains? 2) how does it work? I don’t know where to start. What do I need to know. I’ve read some prior discussions and there’s links attached but they’re not good for layman terms are complex and they don’t help 3) how do I file returns for day trading. Do I file if my overall income is a loss?

Say I deposited 50k and lost 80k, that’s a loss of 30k overall from my own money. Do I file a return or not?

Hi Am I able to submit my own returns using as has been said before monthly data- with 3 columns of the days trade- one including amount bought or sold, and the profit and loss? Do I class myself as being taxed as capital gains tax or income tax if I am a day trader? Help!

Hi Hannah909 Kaan,
This forum is for guidance only, and as you state links are not suitable for you please contact our Self Assessment helpine who can help answer your questions.
Self Assessment: general enquiries
Thank you. 

Hi,
There is no requirement for you to report any losses to HMRC, however, if you want to be able to set the losses against a future gain, then, if you complete a tax return, you would declare the losses in the capital gains section and include supporting evidence.  
Where a tax return is not required, the losses would be declared in a letter including supporting evidence.
Thank you.

Hello I would like some clarification on HMRC's definition of Primary Income in relation to day trading profits. I am retired with state pension and small private pension and pay tax at the lowest band. My day trading activities will produce a profit higher than my pension income. In HMRC terms will daytrading income constitute Primary Income? In this case will daytrading profits be taxed as Income or CGT? Thanks, rwbw.

Hi Hannah909 Kaan,

You must submit HMRC tax returns but you can attach details of your trading as evidence.

You have to determine yourself if you class this as your main source of income to be taxed as Income Tax. If not, it will be capital gains.

Thank you.