How are forex profits taxed in United Kingdom?

In the UK, CFD profits are subject to Capital Gains Tax at 10% for basic-rate taxpayers or 20% for higher and additional-rate taxpayers, with an annual GBP 3,000 exemption. Spread betting profits, by contrast, are tax-free because they are classified as gambling under HMRC rules.

Tax Guide · 2026

Forex Tax in United Kingdom 2026

Capital gains, CFDs and spread betting — how United Kingdom taxes forex profits in 2026, the headline rate of 10% / 20% CGT; 0% spread betting, filing deadlines, and loss-offset rules enforced by HM Revenue & Customs (HMRC).

United Kingdom Forex Tax Rates 2026

The brackets, rates and thresholds that apply to forex and CFD profits in United Kingdom for the 2026 tax year.

Income Tier	Tax Rate	Threshold	Notes
Basic-rate CGT	10%	Income up to GBP 50,270	On CFDs, not spread betting
Higher/additional CGT	20%	Above basic-rate band	On CFDs, not spread betting
Annual CGT allowance	0%	First GBP 3,000	Per individual, 2024/25
Spread betting	0%	All profits	Treated as gambling winnings
Income tax (if trading)	20-45%	Case I profits	If HMRC deems a trade

Source: HM Revenue & Customs (HMRC). Rates apply to the 2026 tax year and are subject to change in national budget updates.

Key things United Kingdom forex traders need to know

1. Who administers forex tax in United Kingdom

The HM Revenue & Customs (HMRC) is the primary authority responsible for collecting forex and CFD capital-gains tax in United Kingdom. Filings are made annually on Self Assessment (SA100 + SA108) with the deadline falling on 31 January after the tax year ending 5 April. All records — broker statements, trade ledgers, and proof of any foreign withholding — should be retained for the statutory minimum period (typically 5-7 years).

2. How forex is classified versus CFDs

CFD trading profits are chargeable gains under TCGA 1992 subject to Capital Gains Tax. Spread betting profits are exempt because they are treated as winnings from a wager under the gambling duties regime, not as investment returns.

3. Spread betting status in United Kingdom

Spread betting is uniquely tax-free in the UK — it is classified as gambling rather than investment, so profits escape both CGT and income tax for ordinary individuals. Losses are correspondingly non-deductible.

4. Cryptocurrency treatment

Cryptocurrency gains are CGT chargeable gains (normally 10% or 20%) subject to the GBP 3,000 annual allowance. Frequent crypto trading can be reclassified as a financial trade under HMRC's badges-of-trade test.

5. Professional-trader reclassification

If HMRC treats activity as a trade rather than investment, profits move from CGT to income tax at marginal rates up to 45% plus Class 4 National Insurance — usually far worse than the 10/20% CGT outcome.

Go deeper: full United Kingdom tax guide

This page is the 2026 headline summary. For an in-depth walkthrough including software recommendations, record-keeping checklists, and foreign-broker declaration workflows, visit the full deep dive.

Read the full United Kingdom tax deep dive

Frequently Asked Questions

How much tax do I pay on forex profits in United Kingdom?

Forex and CFD profits in United Kingdom are taxed at 10% / 20% CGT; 0% spread betting under the Capital Gains Tax / Spread-Betting Exemption regime, administered by HM Revenue & Customs (HMRC). The exact amount depends on your total capital income, any available allowances, and whether United Kingdom's progressive-scale or flat-rate option is more favourable in your specific circumstances.

Do I need to declare foreign-broker profits in United Kingdom?

Yes. United Kingdom residents must self-declare profits from CySEC-passported or other foreign-regulated brokers — they do not usually withhold local tax. Declaration is made annually on Self Assessment (SA100 + SA108) with a deadline of 31 January after the tax year ending 5 April.

Is spread betting tax-free in United Kingdom?

What happens if I am classified as a professional trader in United Kingdom?

Reviewed by

Daniel Ferretti

Regulatory Affairs Editor · EU Financial Regulation Specialist

10+ years of experience · 28 articles

LLM International Financial Law, University of Luxembourg
Former CySEC Compliance Officer

CFD Risk Warning

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

This website is for informational purposes only. The content does not constitute investment advice. Trading leveraged products carries a high level of risk and may not be suitable for all investors. Past performance is not indicative of future results. EU retail leverage limits apply (ESMA): up to 30:1 on major FX pairs, 20:1 on minor FX, 20:1 on major indices, 10:1 on commodities, 5:1 on equities, 2:1 on crypto.

This page is for informational purposes only and does not constitute tax advice. Tax rules change frequently and depend on personal circumstances — consult a qualified local tax adviser before making decisions about your forex or CFD trading activity.