FAO MF - Day trading question

[alexburdyga]

I hope they can both take their teeth out?

Hi MarrillionFan,

I have registerd with this forum in order to ask you a quick question about your post in the thread "HMRC Tax Rules - Day Trading?" from 20-21st April 2014.

I am sorry for going off Topic for this thread, but I could not find a way to contact you directly, and thought the easiest way of reaching you is by posting on your most recent thread post.

I just wanted to double check with you that as a day Trader you say that you get taxed as income tax and not capital gains tax. I wanted to ask whether the income tax you pay at the end of the year is on the NET gains made OR on GROSS gains that you made? (to confirm, by NET gains I mean if you made 2 trades resulting in £400 loss and a £1000 gain, you would have a NET gain of £600, and so would pay income tax on the £600 gained. And by GROSS gains, I mean if you made 2 trades resulting in £400 loss and a £1000 gain, you would have a GROSS gain of £1000, and so would pay income tax on the £1000 gained.)

The other question is about whether you deduct the commission and the spread cost for trading from the gains made, in order to reduce the amount of tax baing payed? So for example, I plan to day trade with the Swiss Dukaskopy Broker, and they have a variable spread for the EUR/USD FOREX pair, and additionaly volume commision fees of say £30 per Million traded. At the end of the financial year, do you subtract the comission fees and/or the spread for the instruments that you trade from the gains made, and thus reduce the amount of income tax that you have to pay?

Best regards,
Alex

[cojak]

FAO MF - Day trading question

Moved as your question would get lost otherwise.

Also MF may not be the best poster to answer this question but each to their own.

Oh, and FAO spammers - if you post in this thread we'll ban you anyway.

[SimonMac]

Don't ask MF, he sold all his pork belly futures and exchanged them for sledges just as global warming melted all the ice caps

[Troll]

Did you really register with your real name ?

Luv your paper on persistent PKA signalling at the outer mitochondrial membrane of cardiac myocytes. btw exciting stuff

[SimonMac]

Did you really register with your real name ?

Luv your paper on persistent PKA signalling at the outer mitochondrial membrane of cardiac myocytes. btw exciting stuff

Leave her alone, she is trying to cure pancreatic cancer

[vetran]

Don't ask MF, he sold all his pork belly futures and exchanged them for sledges just as global warming melted all the ice caps

You must spread some Reputation around before giving it to SimonMac again.

sorry, wanted to reward you for being the first to 'Sledge' MF.

[AtW]

I am sorry but our resident Walter Mitty is currently very busy arranging a fantasy bridgewater loan ...

[MrMarkyMark]

I am sorry but our resident Walter Mitty is currently very busy arranging a fantasy bridgewater loan ...

I actually understood he was back, wrestling with high finance, at McDonalds...

[vetran]

I actually understood he was back, wrestling with fries, at McDonalds...

FTFY

[MarillionFan]

I paid income tax on the total amount of profit made at the end of the year, so basically after trading costs & as a total.

This year, as it's not quick trades, it's on Capital Gains.

HTH

MF