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What is Spread Betting?
Spread bets and CFDs are financial derivatives that allow you to speculate on the financial markets like individual equities, stock indices, FX, commodities, bonds and many more.
You can find out more about them here What is CFD Trading? & What is Spread Betting? as well as a comparison here CFDs vs Spread Bets.
The main difference in the UK between the two products is how they are taxed.
How are spreads bets and CFD’s taxed in the UK?
Firstly, it's important to note that tax laws are subject to change, they differ between country and depend on your personal circumstances. We do not offer tax advice and it's best to consult a tax advisor to find out the impact for you.
For most UK residents spread bets are tax-free. You won’t pay stamp duty and profits will be free from capital gains tax (losses can’t be used to offset against CGT).
Profits from CFD’s on the other hand are subject to CGT but losses can be offset against other capital gains. CFD’s are free from stamp duty.
| - | Spread bets | CFDs |
|---|---|---|
| Ownership of asset | No | No |
| Capital gains tax | Profits exempt, can't offset losses | Payable on profits, losses can be used to offset |
| Stampduty | No | No |
*Tax laws subject to change and depend on individual circumstances. Tax laws may differ in other countries outside the UK.
Learn more about the financial markets, our products and how to use our platform here.
