Forex guide · 5 min read · Updated 8 October 2026

Forex trading and tax in the UK

A plain overview of how UK tax can apply to forex: spread betting, CFDs, and prop firm payouts. General information only, not tax advice.

General information only, not tax advice. Tax depends on your own circumstances and the rules change. Check HMRC guidance or speak to an accountant before making decisions.

Spread betting

For most individuals in the UK, profits from spread betting are generally not subject to Capital Gains Tax or Income Tax, because HMRC treats it as gambling. That can change if trading is your main source of income or run like a business, so this isn’t a guarantee.

CFDs and spot forex

Profits from CFDs and spot forex trading are generally subject to Capital Gains Tax, with an annual tax free allowance. Losses can usually be offset against gains. Keep records of every trade.

Prop firm payouts

Payouts from a prop firm are usually not trading profits of your own, because you are not trading your own money. They are commonly treated as self employment income and reported through Self Assessment. Get advice if you receive regular payouts.

Keep good records

Whatever the tax treatment, keep a record of every trade, deposit, withdrawal and payout. A trading journal makes this much easier at the end of the tax year.