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Tax implications for the new US options and futures account (for a UK resident)


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Hey IG,

I cannot find much information about if trades on the leveraged or cash account would fall under CGT in the UK.

I assume that trades in the cash account would have CGT, while the leveraged one won't, but I would like to know for sure!

-Thanks!

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@HydroBoy, not financial or legal advice, cash account and CFD fall under CGT (futures and CFD allow offsetting incidental costs (overnight/funding) against profit/losses), spread betting usually is not taxed, one cannot offset CGT against spread betting PnL and vice versa.

Edited by neueneuen
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The new options/futures acct is not classed as spread betting, so profits above  the tax free allowance of £3000 will be liable to cgt regardless of whether the acct is margin or cash

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Hi

The £3000 allowance is here Capital Gains Tax: what you pay it on, rates and allowances: Capital Gains Tax allowances - GOV.UK (www.gov.uk)

I haven't a link re the options acct not having tax free status , but my reasoning is -

1. Its not in an ISA (which would be tax free)

2. It's not in a SIPP , which would be tax free until withdrawn as pension income

3.  On the IG website it is separate from the spreadbetting acct ,ISA etc

$. I spoke to someone at IG about the acct and told them how disappointing it was that it wasn't classed as spreadbetting

 

Regards

Gez

 

 

 

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Reading the product description with a bit more detail, it looks like the margin account allows covered options. And looking at some of the videos that IG has posted on youtube it seems one can also buy/sell shares.

I hope to have my account opened soon so I can investigate a bit more.

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Yes, you will be able to buy us stocks and sell covered calls etc, I forgot to mention I have had a tastytrade acct for years, opened directly with them of course , instead of linked to IG as you are doing now!

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