Capital Gains - Tax, page-17

  1. 645 Posts.
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    Yes, I agree entirely. I didn't mean to imply that for my company the tax shouldn't be that different between being treated as an investor or trader purely because of the 50% CGT issue. I don't use capital gains calculations for my company. I do calculate profit based on the difference in value of my trading stock (Sales - COGS) where COGS is Opening Stock + Purchases - Closing Stock) and I expense my expenses in the year. What I was implying is that purely due to the nature of my trading (and it may not apply to others), I would expect very little difference between the tax calculated if I were a trader and what would be calculated as an investor. I carry very little stock from year to year and have always been profitable, so there is little difference between what the tax would be whatever way it is calculated.
 
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