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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

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Tax on Italian CFDs and turbo warrants

Italian derivatives are subject to the Italian Financial Transaction Tax (IFTT) – sometimes known as the Tobin tax – which came into effect on 3 September 2013.

This tax applies regardless of your place of residence or the place where your transactions have been concluded.

To comply with Italian law, we apply the tax to all CFD and turbo24 trades that have an Italian index or in-scope Italian share as their underlying market.

How does the tax apply for CFDs?

The tables below show how much tax you will be charged when trading each CFD product. Any tax due will be charged to your account at the point of opening your trade only.

Please note that these amounts are indicative only and may be subject to change. For the latest information about tax charges, please contact us.

Indices

You will be charged the Tobin tax according to the following table if you trade CFDs on the Italy 40. In addition, as a result of the increased cost in providing CFDs on the Italy 40, we are increasing our spread on this market.

The table below shows the charges per contract in case the index is quoted below the level of 20.000 points.

Market

Tax per contract

Italy 40 cash €10
Italy 40 future OTC €0.75
Italy 40 cash MINI €5
Italy 40 future OTC MINI €0.38

Should the underlying Italian index quote above 20.000, the charges for Tobin tax will change according to the table below:

Market

Tax per contract

Italy 40 cash €50
Italy 40 future OTC €3.75
Italy 40 cash MINI €5
Italy 40 future OTC MINI €0.38

Shares

Only CFDs based on Italian shares with a market capitalisation above €500m as set out by the Ministry of Finance in December 2012 are currently in scope and will be subject to the tax. This is subject to change by the Italian government. The tax charge will be based on the notional value of the trade.

Notional Value

Value of Tax

€0 - €2499.99 €0.25
€2500 - €4999.99 €0.50
€5000 - €9999.99 €1
€10,000 - €49,999.99 €5
€50,000 - €99,999.99 €10
€100,000 - €499,999.99 €50
€500,000 - €999,999.99 €100
€1,000,000+ €200

Digital 100s and CFD options

For call, put and digital 100 CFD options on the Italy 40, tax will be charged at €0.02 per contract if the option premium is less than €500 – which it nearly always will be for digital 100s. If the premium is greater than €500 the charge may be higher. Please contact the helpdesk for details.

How does the tax apply for barriers and vanilla options?

For barriers and vanilla options that have the Italy 40 as their underlying, we calculate the tax due based on the notional value of the contract * no. of contracts. This tax is based on a sliding scale per the table below. Notional value of a contract is calculated as premium paid * contract size.

Notional Value

Value of Tax

€0 - €2499.99 €0.01875
€2500 - €4999.99 €0.0375
€5000 - €9999.99 €0.075
€10,000 - €49,999.99 €0.375
€50,000 - €99,999.99 €0.75
€100,000 - €499,999.99 €3.75
€500,000 - €999,999.99 €7.50
€1,000,000+ €15.00

How does the tax apply for turbo24s?

You will be charged the IFTT if you trade turbo24s on the Italy 40.

The tax is based on the notional value of your position, calculated as:

Quantity of turbos purchased x price

The value payable is as shown in the following table:

Notional Value

Value of Tax

€0 - €2499.99 €0.01
€2500 - €4999.99 €0.01
€5000 - €9999.99 €0.02
€10,000 - €49,999.99 €0.08
€50,000 - €99,999.99 €0.15
€100,000 - €499,999.99 €0.75
€500,000 - €999,999.99 €1.50
€1,000,000+ €3.00

The charge applies to each affected transaction you make, so it is deducted from your account when you buy or sell an Italy 40 turbo24. You’ll be able to see the amount payable on the order preview screen before you make each transaction.

Afterwards, you’ll see it in the ‘charges’ column when you view your trade history, and it will appear on your statement.