capital gains, page-5

CFDs are classed as a derivative for tax purposes and therefore tax under CGT the same as any other derivative contract is.

Which is basically the same as share purchases and sales.

Your purchase date is the date you enter the specific CFD trade, regardless if it is a long or short position

Your cost base is the grossed up cost of entering the position and is reduced by finance costs and commision.

Your sale price is the grossed up cost of exiting the position.

The 12 month discount will apply if the position is open longer than 12 months.

Technically this is how CFD trades should be treated, however due to the volume of trades that may occur and at times the lack of information and reports that can be obtained from the CFD provider, you may only be able to include the net overall account movement (profit or loss) for the year.

This would mean the net movement would be subject to tax without any discount, which could be a problem if positions are held open for longer than 12 months.

Also if the volume of CFD trading is high you may need to look at accounting for the CFD trading on income account (trader) instead of capital account(investor)