Posted by mick p on 27/November/2002 at 23:16:
In Reply to: Typo... posted by cooldude III on 27/November/2002 at 23:07:
lol..........sozz mate couldn't resist......
Thinking of going fulltime using cfd, understand that you pay CGT at the appropraite rate for earnings (ie not 40% for all?).....
thks for any info....
cheers
: This is a most complicated area of taxation which I don't propose to go into in any depth here, but in answer to your question the effective date is generally the date the position is closed. There was a consultation on the treatment of derivatives which resulted a technical note in December 2001 and in clause 82 in the finance act 2002. This clause repealed some of the established legislation, in particular sections 147 to 175 and section 177 of the finance act 1994, but the reference you need is contained in TCGA 1992 s143.
: Hope this helps.
: CD
:
: : 3) What is the effective date for CGT on short positions - the date you go short or the date you close?
: : The CGT rule you cited is the matching rule. I'm not sure it defines the effective date - if it does I've not understood it! The effective date can be important for CGT tax planning, therefore I'd like to get it right.
: : So, when are you deemed to have made the capital gain on a short CFD - when you open the CFD or when you close it? From a practical point of view it would make sense if it were the date you closed it, which probably means it's the date you opened it!
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