If I use a broker like IG Index in the UK to day trade using Contracts For Difference (CFDs), am I liable for Capital Gains Tax (CGT), or any other taxes? All CFD positions are closed at the end of each day.
But how does the HMRC ever find out? Also, what is the tax? If I open and close two CFD trades intraday, where one gains £500 and the other loses £300, my profit for the day is £200. What is the tax on this?
I suppose HMRC send a letter to each CFD firm at the end of each tax year and ask who made a nice net profit, I think £11,700 is the CGT threshold.