Trading & Brokers Accounting
UK trading firms and brokers must comply with FCA regulatory requirements, maintain segregated client accounts under CASS rules, handle complex multi-currency position tracking, and manage regulatory capital adequacy reporting. The distinction between trading as a business versus personal investing has significant CGT and Corporation Tax implications.
Our trading and broker accounting services include FCA regulatory reporting, client fund segregation compliance, multi-currency P&L tracking, regulatory capital adequacy calculations, transaction tax reporting, Corporation Tax on trading profits, and audit-ready financial statements. We support firms in maintaining compliance while managing complex financial instruments.
What's Included
Comprehensive services tailored to your industry needs
Industry-Specific UK Expertise
Key UK Challenges
Complexities you face
- Maintaining FCA-compliant segregated client money with daily reconciliation requirements
- Tracking multi-currency positions with real-time mark-to-market P&L calculations
- Preparing regulatory capital adequacy returns (ICARA process under IFPR)
- Distinguishing between trading profits (Corporation Tax) and investment gains (CGT) for tax treatment
- Managing Stamp Duty Reserve Tax (SDRT) at 0.5% on UK share purchases
- Complex revenue recognition on brokerage commissions, spreads, and financing charges
Tax Considerations
HMRC rules & reliefs
- Corporation Tax — trading profits taxed at 25% for companies; financial trading income treated as revenue
- Stamp Duty Reserve Tax (SDRT) — 0.5% on purchases of UK shares and securities
- Financial Transaction Tax — potential future UK FTT implications for high-frequency trading
- VAT exemption — financial intermediation services are exempt from VAT
- Corporation Tax loss relief — trading losses can be carried back one year or forward indefinitely
- Transfer pricing — applicable to cross-border transactions within connected trading entities
How We Help
Our tailored solutions
- FCA regulatory reporting including ICARA and capital adequacy submissions
- CASS-compliant client money management and daily reconciliation processes
- Multi-currency P&L tracking and unrealised/realised gain classification
- SDRT compliance and reporting on UK share transactions
- Corporation Tax returns with accurate classification of trading income and capital gains
- Audit-ready financial statements prepared under FRS 102 or IFRS as required
Ready to Simplify Your Trading & Brokers Finances?
Get a free consultation with our industry specialists and discover how we can help your business thrive.
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