hedging into your ISA

richman10000

hello i am a extensive trader and i make good gains. I have alot of surplus cash available that i am looking to invest in stocks in the long term. I already use my maximum cgt allowance up each year so alot of my profits are being taxed.

I was just wondering if anyone has ever considered before hedging into their ISA, is it allowed? or do the government see it at tax evasion? i do not want to be the wrong side of the law.

Let me explain for example. If you know the likely trend of a stock is going up. You play safe by going long via CFD in the ISA and short via CFD by the same amount outside the ISA. Effectively you could say your money is now being 'transferred' into the ISA if the stock rises. Ofcourse you are not making any profit, but it allows you to transfer money into the ISA allowance so it isnt taxed on future gains. get my drift?

Can someone give me info regarding this situation whether it is legal or not? Im sure that people also do it with their SIPP's by claiming the tax relief and then hedging it out to make it accessible.

thanks, richman

debbie42

You can't have CFDs in an ISA.

Aegis

debbie42 wrote: »

You can't have CFDs in an ISA.

Presumably you could buy shares within the ISA and sell short via CFD outside the ISA, but in order to get the money into the ISA you'd have to make the right call with the shares.

Milarky

Aegis wrote: »

Presumably you could buy shares within the ISA and sell short via CFD outside the ISA, but in order to get the money into the ISA you'd have to make the right call with the shares.

....or the plan would go into reverse!

Aegis

Milarky wrote: »

....or the plan would go into reverse!

Indeed! that wouldn't be ideal!

GTG

You could also hedge into your ISA from your SIPP to get around the pension rules and the associated tax implications etc.

There would soon be legislation if enough people were doing it......sorry I meant to say if there were enough people caught doing it.

Aegis

GTG wrote: »

You could also hedge into your ISA from your SIPP to get around the pension rules and the associated tax implications etc.

There would soon be legislation if enough people were doing it......sorry I meant to say if there were enough people caught doing it.

Can you sell short in an ISA or SIPP though?

GTG

Aegis wrote: »

Can you sell short in an ISA or SIPP though?

I'm 99% sure CFD's are allowed in SIPPs, I know they are not allowed in ISA's, however there are other investment vehicles that can be used to produce the desired result.

spspyrou

Until last month I had barely heard of CFDs and Spread Betting. It's kind of exciting but I don’t fancy getting fleeced or finding myself on the wrong side of the law (if that is possible). I’m looking for a training course.. Found one here that deals with CFD that I have found. Anyone done it? Does anyone know of one they have firsthand experience of that they can recommend?