Is it possible to report in 2 different places in a single year, both income from business & investment?
For example. I decide to use CFD's to add leverage to my portfolio. So i sell my shares of BHP & buy the equivalent number of contracts in a CFD. I do nothing with these for 5 years except pay the interest charges & collect the dividend distributions. After 5 years I sell my contracts as I'm retiring. In this example I see the purchase of CFD's as an investor & therefore CGT liable as they are exactly the same as shares except legally I don't hold the shares. In theory I should also get the 50% CGT discount*
At the same time I decide to day trade forex contracts using the same account. I trade on average 10 times a week, 50 weeks of the year & I consistently make a profit. I close all contracts on the same day I open them & dedicate regular amounts of time each day to my forex trades. This clearly is trading & not investing & therefore income from a business.
*With regard to CGT discounts If in year 2+ of holding the CFD contracts my dividend distributions exceed my interest payments are they then able to discounted 50%?
