Options trading profits are generally subject to Capital Gains Tax (CGT) in the UK. Key points:

• Annual CGT allowance of £6,000 (2023/24 tax year)
• Basic rate taxpayers: 10% on gains above allowance
• Higher rate taxpayers: 20% on gains above allowance
• Bed and breakfasting rules apply

Spread betting on options is tax-free in the UK, but comes with higher risk:

• No CGT or income tax on profits
• Losses cannot be offset against other gains
• Higher leverage and risk
• Not suitable for all investors

Maintain detailed records of all options trades:

• Trade dates and times
• Strike prices and expiration dates
• Premiums paid and received
• Profit/loss calculations
• Keep records for at least 6 years