Originally Posted by
fungus pudding
There is no CGT as such, and therefore no CGT rate, but traders are taxed at their marginal rates on capital gained (aka profit). Converting capital gains into spending money can certainly make for a tax bill. Traders are viewed differently than investors, and regular transactions are more likely to be viewed as trading actvity rather than investing. It all goes back to the original intention - and Mr. Taxman may have his own opinion on that, not necessarily agreeing with yours. There's a lot of grey in the taxman's bible - but you are wrong if you think you can just lie back and live off untaxed capital gains. Not that it matters - cos you can live pretty well off investments, paying tax on dividends, rents, and other investment income, avoiding the need to sell. In fact the fungus rule of survival is ACCUMULATE. Don't trade - don't sell - just keep stacking up income. COLLECT.