Is forex trading taxed in the UK?
Short answer: it depends on the product you use and on whether HMRC sees what you do as a trade. For most UK individuals, profits on CFDs and rolling spot forex fall within Capital Gains Tax, while spread betting profits are not normally taxable. This guide explains each case using HMRC's own guidance and links to the source pages.
General information only, not tax advice. Tax treatment depends on your individual circumstances and can change in any Budget. Figures are taken from GOV.UK for the 2026 to 2027 tax year as at 26 October 2026. Speak to a qualified tax adviser or HMRC about your own position.
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Free, opens TelegramCFDs and rolling spot forex: Capital Gains Tax
Most retail forex and gold trading in the UK is done through CFDs or rolling spot forex. HMRC Capital Gains Manual CG56100 treats retail CFDs as financial futures and says that, unless the profits are taxable as trading income, the outcome is charged under the capital gains regime. Commission and the overnight financing debited or credited to the account are brought into the calculation when the contract is closed.
In practice that means you add up your gains and losses for the tax year (6 April to 5 April), deduct the annual tax-free allowance, and pay tax on what is left at the Capital Gains Tax rate that applies to you.
Capital Gains Tax rates for 2026 to 2027
According to the Capital Gains Tax rates on GOV.UK page at the time of writing:
| Item | 2026 to 2027 |
|---|---|
| Annual tax-free allowance | £3,000 |
| Rate on gains within the basic rate band | 18% |
| Rate on gains above the basic rate band, or for higher and additional rate taxpayers | 24% |
| Basic rate band used in HMRC's example | £37,700 of taxable income |
Your gains are added to your taxable income to work out which rate applies, so part of a gain can be taxed at 18% and part at 24%. HMRC's page includes worked examples.
Spread betting: not normally taxable
HMRC Business Income Manual BIM22015 says that betting and gambling, as such, are not trading, and that a person placing a spread bet is not normally carrying on a trade. They are not taxable on the profits and receive no relief for their losses. GOV.UK also lists betting winnings among the gains you do not pay Capital Gains Tax on (see what you pay Capital Gains Tax on).
There are exceptions. BIM22020 explains that spread betting wins can be taxable where they arise from carrying on a trade. If spread betting is part of how you run a business, take advice.
When trading profits become income
CG56100 refers to HMRC Statement of Practice SP03/02 for deciding when profits or losses on futures and similar contracts are trading income rather than capital gains. For most people who trade alongside a job, gains are treated as capital. If trading is organised and frequent enough to look like a business, HMRC may view it differently, which changes both the tax and the National Insurance position. This is the area where personal advice matters most.
Using losses
On CFDs and rolling spot forex, losses can normally be set against gains in the same tax year and carried forward to later years, but only if you report them to HMRC. Spread betting losses get no relief. Keep every broker statement, because you will need the opening and closing prices, costs and dates for each trade.
Reporting and paying
You do not get a bill for Capital Gains Tax. GOV.UK's guide to reporting and paying Capital Gains Tax says that if your total taxable gains are above your allowance you need to report and pay. For gains other than UK property this is normally done through a Self Assessment tax return for the tax year after the disposal, or through HMRC's real time Capital Gains Tax service by 31 December after the tax year if you are eligible.
A simple record keeping checklist
- Download annual statements from every broker account, including closed ones
- Keep a note of which accounts are spread betting and which are CFD
- Record deposits and withdrawals separately from trading results
- Note any currency conversion if the account is not in pounds
- Diary the 31 January Self Assessment deadline if you file a return
What this means if you follow signals
Following a signal service does not change how your trades are taxed. What matters is the product and account you trade through. Forexuro publishes results in pips between published prices, excluding spread, commission, overnight financing and slippage (see our methodology), so they are not a figure you can use for tax. Only your broker statements show your real gains and losses.
If you are still choosing between products, our guide to spread betting vs CFDs for UK signal followers compares sizing, costs and protections. To see how signals are laid out before you trade any of them, join the free Telegram channel.
Frequently asked questions
Do I pay tax on forex trading in the UK?
For most individuals, profits on CFDs and rolling spot forex fall within Capital Gains Tax, while spread betting profits are not normally taxable. It can be different if HMRC sees your trading as a business. This is general information, not tax advice.
What is the Capital Gains Tax allowance for 2026 to 2027?
GOV.UK gives the annual tax-free allowance for the 2026 to 2027 tax year as £3,000, with rates of 18% and 24% depending on your taxable income. Check GOV.UK for the current figures, as they can change in a Budget.
Can I offset forex trading losses?
Losses on CFDs and rolling spot forex can normally be set against capital gains, but you need to report them to HMRC. Spread betting losses get no tax relief.
Is spread betting tax free?
For most individuals HMRC does not treat spread betting as trading, so profits are not normally taxable (HMRC Business Income Manual BIM22015). There are exceptions where the bets arise from carrying on a trade.
Do I need to report forex gains if I am under the allowance?
GOV.UK says you need to report and pay if your total taxable gains are above your allowance. There can be other reasons to report, such as claiming losses, so check HMRC's guidance or ask an adviser.
Keep reading
Spread betting vs CFDs for UK signal followers · Forex risk management basics · Choosing a forex broker for signals · Risk disclosure
Education only, not financial advice. Trading forex, gold and CFDs carries a high risk of losing money, and leverage magnifies both gains and losses. Past performance is not a reliable guide to future results. Read our risk disclosure.