Crypto tax in the United Kingdom

HM Revenue and Customs (HMRC) does not treat crypto as money or currency. For most individuals who buy and sell crypto as a personal investment, it is treated as a chargeable asset, so Capital Gains Tax applies to disposals and Income Tax applies to crypto received as a form of reward or earnings. HMRC sets out its approach in its cryptoassets manual, a position current to June 2026. In rare cases where a person trades crypto with such frequency and organisation that it amounts to a financial trade, the profits can fall under Income Tax instead, but this is unusual and HMRC sets a high bar for it.

A disposal is the trigger for Capital Gains Tax. As of June 2026, disposals include selling crypto for pounds, swapping one token for another, using crypto to pay for goods or services, and giving crypto away to anyone other than a spouse or civil partner. Buying and holding is not a disposal, and moving crypto between wallets you control is not a disposal. You work out the gain as the value at disposal less the allowable cost, using HMRC pooling rules along with the same day rule and the 30 day rule for matching acquisitions to disposals.

The annual exempt amount is 3,000 pounds for the 2025 to 2026 tax year, down from earlier years. Gains above that allowance are taxed at 18 percent to the extent they fall within your basic rate band and 24 percent above it, for disposals made from 30 October 2024. Capital losses can generally be set against gains and carried forward if reported. These figures are current to June 2026.

Crypto received as a reward or as earnings is generally subject to Income Tax at your marginal rate when received, a position current to June 2026. This covers mining rewards, staking rewards, many airdrops that come with a service condition, crypto paid as salary, and returns from some lending and liquidity activity. The value in pounds when received is taxed as income, and that same value usually becomes the cost base for a later Capital Gains Tax calculation when you dispose of the coin. Income Tax rates stack on top of your other income, broadly 20 percent in the basic rate band, 40 percent in the higher rate band, and 45 percent in the additional rate band, after the personal allowance. National Insurance can also apply where the crypto is employment income.

You report crypto gains and income through Self Assessment. As of June 2026 you generally need to register and file if your total chargeable gains exceed the annual exempt amount, if your total disposal proceeds exceed the reporting threshold for the year, or if you receive taxable crypto income from mining, staking, airdrops with a service condition, lending, liquidity provision, or similar activity. The online filing and payment deadline is 31 January following the end of the tax year on 5 April. Keep detailed records of dates, values in pounds, fees, and wallet movements, since the responsibility to report sits with you.

A new international reporting framework is being introduced. United Kingdom crypto service providers began collecting in scope user and transaction data from 1 January 2026, with the first reports to HMRC due in 2027 covering 2026 activity. This improves the information HMRC receives, which makes accurate self reporting more important. This is general information, not tax advice, so verify your position with a qualified adviser before filing.