CFD's and capital gains tax

[iano086]

I refurbished and sold a property recently. The value added by way of refurbishment works is subject to CGT - the property was an inheritance, isn't a PPR and isn't a company's asset.


I've been told by a friend that the CGT due can be used to purchase CFD's and that the way it works is that: any loss made on the CFD's is suffered by Revenue and I pay the CGT minus this loss. And that any gain made on the CFD's is retained by me subject to that gain itself being subject to CGT (along with payment of the original CGT amount)

Is that the case and could someone give me a thumbnail sketch on the detail of this?

Cheers..

 

[T McGibney]

Pay no heed to your friend. He's talking through his hat.

 

[iano086]

Pay no heed to your friend. He's talking through his hat.

If it sounds too good to be true..

 

[Gordon Gekko]

An interesting concept...tax that's due but hasn't been paid as "free play money".

I wonder whether it would extend to VAT? One could take the VAT on Sales, leverage it up, and then buy some Tullow bonds. If it works out, we're all off to Dubai. If it doesn't work out, the VAT man carries the can. Win Win!