Foreign exchange trading - how to disclose in SATR?

Foreign exchange trading - how to disclose in...

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Does anyone have experience of capital gains disclosure for anyone engaged in foreign exchange trading?
My client uses robots to trade 24/7. (He also has a regular 40 hour a week job) It means that he engages in hundreds (maybe thousands) of transaction per annum. Any gain or loss on an individual transaction is trivial.
How do/would you show this in his SATR?

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By Peter The Painter
13th Jan 2012 15:58

Trading ?

If someone is engaged in foreign exchange "trading" why are they declaring capital gains?

 

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By andy.partridge
13th Jan 2012 16:13

Hey, I'm the one asking the question!

I think it has something to do with the idea that if HMRC treated it as a (self-employment) trade the losses suffered (by many) would be relieved against other income instead of being carried forward to set against future gains. Not good for the tax collecting business.

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By andy.partridge
17th Jan 2012 09:48

My research indicates . . .

My research indicates:

1. profit is subject to CGT.

2. the number of disposals is determined by the number of broker accounts and not the number of transactions within the account

3. An account that has made gains is not treated as making a disposal until the account is closed.

I have 2 problems with this - firstly the information was not gathered from a tax/accountancy source, but from an FX site (uh-oh!) and secondly, point 3 does not take account of any withdrawals from an account which logically would crystallise a gain.

Does anyone have any comments or sources of information I could plunder? Many thanks in advance..

 

 

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