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bigduckontax, Accountant
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I own a close investment company which has been been making

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I own a close investment company which has been been making peer-to-peer loans. The company has started also to trade share options, mainly selling traded options. In the last accounting year (which is the same as its tax year), it generated profits from options trading of about the same amount as the interest received from peer-to-peer loans.1) For accounting purposes, the company is accounting for the options on a mark-to-market basis. My understanding is that for tax purposes, the profits on option trading which are assessable to tax should be computed as follows:a) Options opened and closed within the tax year - premiums received less the cost of buying back the options
b) Options still open at the tax year end - premiums received. Any amounts paid to buy back the options subsequently to be allowable was a cost in the subsequent tax year.
c) Commissions paid to the broker to be allowable as a deduction.Could you confirm if the is correct.2) The company is intending to report the profits on option trading as trading profit rather than chargeable gains. Is this correct?3) In the CT 600 short, where should I claim for the general expenses on the company (e.g.. filing fees, bank charges)?

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

a. Correct.

b. Correct.

c. Correct.

You seem to have everything off to a T, to use an old expression.

I do hope that I have been able to set your mind at rest on this matter,

Customer: replied 1 year ago.
Hi Keith, could you also answer questions 2) and 3)Thank youSteve

Sorry Steve, I missed that!

2. Correct.

3. You net these out before completing Box 3. You just declare the net profit.

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Thank you for your support.

Deep apologies for initially missing half your question!