The short version: Securities is a general term for tradeable financial instruments. Shares, bonds, options, futures. Basically anything you can buy and sell on financial markets.
How are they taxed?
It depends what you do with them. Dividends from shares are taxed as dividend income. Interest from bonds is taxed as savings income. Profits from selling are subject to Capital Gains Tax. If trading is your business, profits might be taxed as trading income instead.
What if you trade frequently?
HMRC might consider you a trader rather than an investor. Traders pay Income Tax on profits rather than CGT. The distinction matters because the rates and allowances are different.
What about losses?
Capital losses can be offset against gains. If you’re a trader, losses can potentially be offset against other income. Keep records of everything.
Trading securities and not sure how to handle the tax? We can help you get your reporting right.
