How is spread betting different to CFD ?

One thing I have to highlight in here is that financial spread betting and CFDs brokers are both regulated by FSA thus regulation is pretty much the same.
The main difference is tax as spread betting is tax free and with CFDs you can trade considerably higher volumes as usually with financial spread betting you can normally bet up to £200 on FTSE100 spot whereas with CFDs you have higher stakes and can offset your gains against losses.
 
I thought you dont pay capital gains tax on CFD's.

The main difference is that with CFDs you trade at market prices, but pay comission to the broker.
 
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