Forex and CFD trading tax in the UK

CFD taxation in the UK: Capital Gains Tax

HMRC’s Capital Gains Manual page CG56100 states that retail contracts for differences are financial futures and that, in almost every case, section 143 of the Taxation of Chargeable Gains Act 1992 charges the outcomes under the capital gains regime. The gain or loss is worked out when the contract is closed.

Payments equivalent to interest that you make or receive on a CFD, such as overnight financing, are not true interest in HMRC’s view: they go into the capital gains computation for the contract. Keep the broker’s statements, which list financing alongside each closed position.

Forex at retail brokers: the FCA says its references to CFDs include rolling spot forex, the product most UK brokers sell as forex trading. If your broker account is a CFD account, the CFD rules above are the ones to read.

Capital Gains Tax rates and allowance for 2026 to 2027

GOV.UK gives these figures for gains made from 6 April 2026. Whether a gain falls in the basic rate band depends on your taxable income for the year; any part above the band is taxed at 24%.

The last row is arithmetic on the GOV.UK figures to show the order of the steps; it is not a calculation of your tax bill.

Is spread betting tax free in the UK?

Section 51(1) of the Taxation of Chargeable Gains Act 1992 declares that winnings from betting are not chargeable gains. HMRC’s Business Income Manual (BIM56900) says that for individuals the contract has to be examined to see whether it is a gambling or wagering one, and that profits or losses from gambling or wagering contracts are outside the scope of Income Tax. The same page adds that this does not apply if the spread bet is used for a commercial purpose such as a hedge.

BIM22020 sets the second limit: spread betting wins are taxable when they arise from carrying on a trade, and whether a particular spread bet is taxable depends on the terms of the contract and the economic substance of what is done. Brokers that advertise spread betting as “tax free” add, as IG does, that tax laws are subject to change and depend on individual circumstances.

Can you offset trading losses?

CFD losses: CG56100 brings the outcome of a closed CFD into the computation of the net chargeable gain or allowable loss. Under the GOV.UK losses rules, a reported loss is deducted from gains made in the same tax year, the claim can be made up to 4 years after the end of the tax year of the disposal, and losses left after bringing gains down to the tax-free allowance are carried forward.

Spread betting losses: the sources on this page give them no route into the capital gains computation, because the winnings themselves sit outside it. Do not plan on setting a spread betting loss against CFD or share gains without checking with HMRC or a tax adviser.

When trading becomes a trade: income tax instead of CGT

HMRC decides whether an activity is a trade using the “badges of trade” summarised in BIM20205: a profit-seeking motive, the number of transactions, the nature of the asset, similar trading interests, changes to the asset, the way the sale was carried out, the source of finance, the interval between purchase and sale and the method of acquisition.

If your CFD or spread betting activity is a trade, the profits are taxed as trading income rather than as gains, and for spread bets BIM22020 makes the wins taxable. HMRC decides this case by case from your own facts, so this is the question to put to a tax adviser before you rely on either treatment. This is general information, not tax advice; your position depends on your circumstances, so check HMRC guidance or ask a tax adviser.

Stamp duty on CFDs and spread bets

HMRC’s Stamp Taxes on Shares Manual (STSM118040) says that because the issue or closure of a CFD does not involve the purchase of a stock or marketable security, there is no Stamp Duty or Stamp Duty Reserve Tax liability. IG’s UK spread betting page states that spread betting profits are free of stamp duty as well, since you do not own the underlying asset.

How to report and pay

GOV.UK lists two ways to report gains on assets other than UK residential property: a Self Assessment tax return, or the real-time Capital Gains Tax service, which only UK residents can use. For the real-time service GOV.UK states that you must report by 31 December in the tax year after you made the gain and pay by 31 January. Losses are claimed by including them on your tax return.

• Download the broker’s statement of closed positions for the tax year, which for 2026 to 2027 starts on 6 April 2026, with financing and dividend adjustments.
• Separate CFD results (capital gains) from spread betting results (outside CGT unless you trade).
• Net CFD gains and losses for the tax year, then deduct losses brought forward.
• Keep the statements: a later HMRC enquiry asks for the figures behind the return.