Losses through share dealing, are they tax deductable?

Faz

Hi guys,

I have been dealing in shares using CFDs, and I know that any profits made over a certain amount are subject to tax. I have also been told that any losses made means that you can end up offsetting against the tax you pay on your normal income? Is this true?

During the tax year 07-08 I have made a (large) net loss on my CFD trading. I have been working in employment from July 07 till now and paying the normal rate of tax. Can anyone explain please how I can go about reclaiming tax I have paid from my CFD losses please?

Thanks.

Faz

42 views and no reply, am I posting a difficult question?

Mr_Taxtastic

Not sure what CFD is but to answer your question:

Relief is available for capital losses on unquoted shares (which you subsricbed to) against other income and can be claimed against income in the year of the loss or carried back to the prior year of the loss.

If the loss is on quoted shares then it is a capital loss which can only be carried forward against future capital gains.

If your in SA then the claim for the loss will go on your return. If your not then a letter to your tax office with all the details would be a good start.