Chris Vezey
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What type of tax applies to profits made from trading stocks using Contract for Difference?
In the 2022/23 tax year I was using Capital.com to trade stocks using Contract for Difference. The time each stock was held before selling varied but it was usually one week to 3 months. With each trade there is an overnight fee applied for as long as the trade is open. If I add up all the profitable trades and trades with losses together with the overnight fees, I made a profit during the tax year. Is this the correct way to calculate whether a profit or loss has been made? Is this profit considered income or capital gains? If it is considered as income, what would happen if I had made a loss at the end of the year. Thanks for your help.