Calculate CGT on CFD Profits
Frequently Asked Questions
Are CFD profits subject to capital gains tax in the UK?
Yes. Profits from Contracts for Difference (CFDs) are subject to Capital Gains Tax in the UK, not income tax (unless you are a professional trader carrying on a financial trade). The CGT rates for 2026-27 are 10% for basic rate taxpayers and 20% for higher or additional rate taxpayers on share and index CFDs.
Can I offset CFD losses against capital gains?
Yes. CFD losses can be offset against other capital gains in the same tax year or carried forward to future years. You must report losses to HMRC even if there is no tax to pay, to preserve your right to use them in future years. Keep detailed records of all CFD trades.
What is the CGT annual exempt amount for 2026-27?
The Capital Gains Tax annual exempt amount for individuals in 2026-27 is £3,000. This means the first £3,000 of net capital gains each tax year is free from CGT. This allowance cannot be carried forward if unused.
How do I determine my CGT rate on CFDs?
Your CGT rate depends on your total taxable income. If your income plus capital gains fall within the basic rate band (up to £50,270 total for 2026-27), your CGT rate is 10%. Any gains above the basic rate threshold are taxed at 20%. Both rates apply to CFDs on shares, indices, currencies, and most other assets (not residential property).
Do I need to complete a self assessment for CFD gains?
Yes. If your total capital gains (before the annual exemption) exceed £50,000, or your net gains exceed the £3,000 annual exempt amount, you must report them via Self Assessment by 31 January following the tax year end. You can also use HMRC's real-time CGT service within 60 days for simpler cases.