At what point are you trading in shares?

At what point are you trading in shares?

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Many are bought and sold within a very short period. Some are AIMS listed and held for longer. Does anyone have experience of HMRC claiming that a taxpayer is dealing in shares on a self-employment basis and if so, at what kind of level did this kick in?

EL

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By Peter Cane
08th Aug 2006 09:19

BIM 65701
Have a look at the Revenue's Business Income Manual Chapter 65701.

The number of transactions alone may not necessarily be conclusive, but you would have to consider whether all the usual badges of trade apply.

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By AnonymousUser
08th Aug 2006 13:46

To trade or not to trade in shares
Dean is not quite correct. In my experience HMRC NEVER treat the profits or losses as taxable under income tax rules. This applies even to stockbrokers trading on their own account.

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By deanshepherd
08th Aug 2006 12:20


Very rare..

..in practice for an individual to be considered 'trading' in shares, regardless of the number of transactions.

Although the Revenue may rather tax profitable years as income, they would not want the floodgates opening for those loss-making traders.

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By User deleted
08th Aug 2006 15:46

Thanks for the replies
Thank you all.

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