CFD V Spread Betting Taxation?

[POD1]

Are CFDs and Spread betts viewed the same under Irish tax law?

1) In direct taxation of profit by both
2) In terms of off setting against Property CGT

Paddy

 

[z106]

Are CFDs and Spread betts viewed the same under Irish tax law?

1) In direct taxation of profit by both
2) In terms of off setting against Property CGT

Paddy

Spreadbetting is ompletely tax free for any gains.

On the flip side you cannot offset any losses against tax.

It's basically treated like any regular bookie is treated from a tax viewpoint.

 

[demoivre]

CFDs and Spread bets are different products and are treated differently for tax purposes. While they are both geared products CFDs attract commission charges, financing charges for long positions, are opened ended and gains are taxable. Whether or not CFD profits are liable to CGT or income tax will depend on individual circumstances - someone investing for the medium to longterm using CFDs could reasonably expect those gains / losses to come under the CGT umbrella whereas a short term trader, and frequent trader, using CFDs, could expect his gains to be subject to income tax.

 

[POD1]

Hi Guys,

Thanks to both of you just to clarify:

1) Spreadbetting is completely tax free ( True?) probably making it more favourable to a "safe" position where one would expect to make money

2) CFDs are subject to taxation. (True?)

Q: If have have say a 20000 euro CGT Bill from the sale of a residential property can I then use a CFD position which if:

a) I lose money on my CFD can it be offset against my property CGT tax bill as paper share losses can
b) I win money I pay CGT on both profits

Thanks for your help