These questions may have already covered somewhere else but could not find so wanted to ask.
I know that there is no capital gain tax applicable if you are resident in CH. and know the rules below not to be considered as professional trader and end up paying capital gain tax.
I have two questions on this below information...I have Interactive brokers account, which is based in the UK.
(a) if I am ok with all of the 5, except 1st one, meaning, i sold a share in 3 or 4 months, rather than keeping it for at least 6 months, is there a chance I may be asked CGT on the profit I made on shares sold.
(b) regarding 5, how do I show in my tax declaration that the option i traded was for hedging purposes. I declare as is and the authorities understand by looking also the underlying shares I own at that time or do i explicitly mention this in my tax declaration in a way? if latter, how?.
1. The securities sold were held for at least 6 months
2. The total volume of transactions (sum of all purchases and sales) does not represent, per calendar year, more than five times the amount of securities and holdings at the beginning of the fiscal period
3. The realization of capital gains from securities transactions is not necessary to replace income that is missing or has ceased in order to maintain the taxpayer's lifestyle. This is normally the case when the realized capital gains represent less than 50% of the net income for the tax period in question.
4. The investments are not financed by borrowed funds or the taxable returns on assets from securities (e.g. interest, dividends, etc.) are higher than the proportional share of passive interest.
5. The purchase and sale of derivatives (in particular options) is limited to the hedging of the taxpayer's securities positions