Tax on Italian CFDs

Further to a financial transaction tax introduced on Italian equities on 1 March 2012, from  3 September 2013, all Italian derivatives will be subject to a the Italian Financial Transaction Tax (the so-called Tobin tax). 

To comply with the Italian law, from 1 September we will apply this tax to all CFD trades that have an Italian index or in-scope Italian shares as their underlying market. 

How will my trading be affected?

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 our helpdesk

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 latest details of our spreads can be found in our product details.  

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 €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 of the trade (€) Tax
0 - 2500 €0.25
2500 - 5000 €0.50
5000 - 10,000 €1
10,000 - 50,000 €5
50,000 - 100,000 €10
100,000 - 500,000 €50
500,000 - 1,000,000 €100
>1,000,000 €200

Options

For call, put and digital 100 options that have the Italy 40 as their underlying market, we’ll calculate the tax due based on the premium of the option.

All digital 100s will be charged €0.02 per contract. All options will be charged €0.02 per contract providing the premium is less than €500. If the premium is greater than €500 the charge may be higher – please contact the helpdesk for details.

Questions?

If you have any questions about this, please email us at helpdesk.uk@ig.com or tweet your queries to @IGClientHelp and we’ll get straight back to you.

Alternatively, call us on 0800 195 8009 and we’ll be happy to help.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.