UK tax on futures trading?

This is a discussion on UK tax on futures trading? within the Home Trader forums, part of the Trading Career category; Here is my understanding of UK taxation of futures trading. Please correct me if I am wrong: If a person …

re:

Here is my understanding of UK taxation of futures trading. Please correct me if I am wrong:

If a person does not do any of the trading themselves and does not rely on it for income i.e. they have some other job, and they grant ‘power of attorney’ to someone else to trade their account on their behalf, then there is no way that the profits generated in their trading account could be subject to UK income tax. It would have to be capital gains tax, right?

So that means that the first 8,500 quid profit generated in that trading account would be tax-free, right? (capital gains tax-free allowance for 2005/2006).

Suppose 10 Brits all had futures trading accounts that were managed by a third party and all 10 Brits never did any of the trading and did not withdraw money to live on. They all had normal jobs producing income from other sources. The money manager would be able to trade all 10 accounts simultaneously and generate 8,500 tax-free profits per account holder, right?

Is there anything inaccurate with the above observations?

If an individual account holder per the above does make <8,500 quid in their futures account, is that individual required to disclose this activity on a self-assessment tax return, or is disclosing futures trading profit only required when it would be >8,500 quid i.e. when tax would be due?

Thanks.

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