Spread betting

The glossary definition points to the old gaming-contract idea: a game of chance for winnings in money or money's worth. Leveraged spread bets are restricted speculative investments, so the retail leverage, margin close-out, negative-balance and risk-warning rules in COBS 22.5 apply to them as well as to CFDs. The difference people ask about is mostly legal form and tax, not a lighter conduct regime. HMRC's business-income manual says a person who places a spread bet is not normally carrying on a trade, so the profit is not taxed as trading income and the loss is not relieved. BIM22020 says that is not absolute: tax can arise when the win comes from carrying on a trade, judged from the contract and the economic substance. For companies, HMRC treats financial spread bets inside the derivative-contract rules. The capital-gains manual says no chargeable gain arises because no asset is acquired or disposed of. This page does not say whether any particular bet is taxable.