Tax Implications on trading Eminis

[grabey]

Can anyone tell me:

As a UK citizen what the tax implications are for trading Eminis, namely the S&P500 and Russell 2000?

Do I pay US tax or UK tax, Both or none at all?

 

[One Eyed Shark]

UK unfortunately, unless you want to experience the chancellors wrath and set up an offshore company

 

[grabey]

So how much do I have to pay?

What tax is it called, Capital Gains TAx? or something else?

UK unfortunately, unless you want to experience the chancellors wrath and set up an offshore company

 

[gc1]

Since the overwhelming majority of new E-Mini traders lose money it's only going to affect you if you are in the minority.

My understanding is that unless you are considered to be running a business (i.e. subject to income tax and N.I.) it's only capital gains tax - both on any "trading profits" and from any "profit" on on US$ margin funds when you convert them back to £ (if the £ were to have dropped during the period your funds were held as $) - with of course the annual CGT allowance.

So for 1 or 2 lot beginner traders it's unlikely to be an issue.

 

[barnetda]

At what stage does the Inland Revenue decide one is running a trading business?

Are there any benefits to it?

I am a uk citizen and trade 200 eminis per day.

Really appreciate any info.