Do you have to pay tax on spread betting? Usually not, if you are an individual who is not trading. HMRC’s Business Income Manual says a person placing a spread bet is not normally carrying on a trade, is not taxable on the profits and gets no relief for the losses. The exception turns on whether a trade exists.
This is an evergreen explainer and tax information, not tax advice. HMRC’s manuals are guidance for its staff, not statute.
Do you have to pay tax on spread betting? The HMRC paragraphs
This desk read each page below on 8 October 2026. The date in brackets is the page’s “Updated” date, not proof the paragraph changed.
| Source (updated) | What it says |
|---|---|
| BIM22015 (4 Aug 2026) | Spread bettor “not normally carrying on a trade”; no tax on profits, no relief for losses; the bookmaker is taxable |
| BIM22019 (4 Aug 2026) | Down v Compston: golfer, not taxable. Burdge v Pyne: club proprietor, taxable |
| BIM22020 (4 Aug 2026) | Both cases apply to spread betting; the test is “the terms of the contract and the economic substance” |
| CG56105 (6 Oct 2026) | No chargeable gains or allowable losses arise from spread betting |
| CFM50380 (27 Aug 2026) | A company’s financial spread bet is a contract for differences |
| IG (3 Aug 2026) | Free of CGT and stamp duty “under current HMRC rules”; no paragraph cited in text read |
| CMC Markets (3 Sept 2026) | Names the Business Income Manual; no paragraph or case in the text read |
When is spread betting taxable as a trade?
BIM22015 starts from Graham v Green [1925]: betting and gambling, as such, are not trading. An organised activity to make profits out of the gambling public normally is, which is why the bookmaker pays.
BIM22019 supplies the cases. In Down v Compston [1937] a professional golfer who habitually played private games for bets was not taxable: the bets did not arise out of his vocation. In Burdge v Pyne [1968] a club proprietor who regularly won at three-card brag against members in his own card room was taxable, because there the winnings came from carrying on the club’s trade.
BIM22020 applies both cases to spread betting. Wins must arise from carrying on a trade, not merely from an opportunity a trade presents, and whether a given bet is taxable “will depend on the terms of the contract and the economic substance of what is done”. Neither IG’s nor CMC’s page, as read on 8 October 2026, cites that test or either case.
Is spread betting tax free for a company?
Not on the same footing. CFM50380, citing City Index Ltd v Leslie (Court of Appeal, 1991), says a financial spread bet entered into by a company is a contract for differences, and that its being a wager does not of itself take it outside the derivative contracts rules in CTA09/PT7.
Spread betting tax: the questions readers ask
Is spread betting tax free in the UK?
For an individual who is not trading, HMRC’s manuals treat it that way: BIM22015 says no tax on the profits and no relief for the losses, and CG56105 says no chargeable gains or allowable losses arise. IG and CMC each say stamp duty does not apply; this desk read no HMRC page on stamp duty.
Do I still need to report spread betting income to HMRC?
IG says profits need not be declared on a self-assessment return; CMC says that in many cases an individual need not declare personal spread betting profits. Both are broker statements, not HMRC’s. If the activity could be a trade under BIM22020, ask a qualified tax adviser rather than a sales page.
Can spread betting losses be offset against capital gains?
Not according to HMRC’s Capital Gains Manual. CG56105 says no assets are acquired or disposed of and no allowable losses arise from spread betting. IG’s comparison table says the same, and contrasts CFDs, where it says losses can be offset against other gains.
The tax position is not a risk control
IG’s own page says 70% of retail investor accounts lose money when trading spread bets and CFDs with it, and BIM22015 gives a non-trading bettor no relief for those losses. A favourable tax line is not a reason to take the risk. Before opening any account, look the firm up on the FS Register (why the Warning List is not enough) and read its terms; our IG and Spreadex reviews set out what each publishes.
Spread bets risk substantial loss. Tax information, not tax advice. Check the Register.