Hi Guys -doing my efiling. I find that the reports of gains and losses given to us by the broker for CFD's does not have separate summary subtotals for total Cost Price and Total Proceeds as it does for shares.So cannot be entered in Capital Gains section of E Filing.This is the 1st time I am reporting on CFD income in my tax return. Where do I go from here? Help. Many thanks.
Profits and losses on cfd's can't be of a capital nature. The profit and losses are added or deducted from you cash on a daily basis, it is as if you are selling and buying shares on a daily basis. Cfd is a contract you have with the cfd provider ie bank, you are not a shareholder and you are in essences "cashed out" at the end of each trading day. Just as dividends from cfd's are not dividends in your hands, as you are Not a shareholder, you have a position in relation to a share.
Enzed, you can't hold a cfd as an investment in the same manner in which you hold a share because a cfd is just a contract that you entered in with the bank, whereby the bank pays or deducts the difference in the movement of the share price on a DAILY basis never mind five years ! You can stay in the contract for years if you wish, but basically you deal in the movement of a share on a ongoing basis and that will defenitly be trading.