Answers · UK 2025/26
Is cryptocurrency subject to capital gains tax in the UK?
Yes. HMRC treats cryptocurrency as a capital asset, so disposing of it -- by selling, swapping, spending or gifting -- is a taxable event that may trigger capital gains tax.
Full answer
HMRC's Position HMRC published its cryptoassets manual confirming that for most individuals, crypto holdings are subject to Capital Gains Tax (CGT), not income tax. Each disposal -- whether you sell for fiat currency, exchange one token for another, use crypto to buy goods, or give it away (other than to a spouse or civil partner) -- is a separate taxable event. CGT Rates for 2026/27 The CGT annual exempt amount (AEA) is GBP 3,000 for 2026/27. Gains above this are taxed at: - 18% if you are a basic-rate taxpayer (and the gain keeps you within the basic-rate band) - 24% if you are a higher or additional-rate taxpayer, or if the gain pushes you into the higher-rate band Note: Business Asset Disposal Relief (BADR) at 18% does not apply to crypto held as a personal investment. Pooling Rules HMRC applies share-matching rules to crypto. Coins of the same type are pooled into a 'Section 104 pool'. When you dispose of coins, the allowable cost is calculated as the proportionate share of the total pool cost. The 30-day same-asset rule (bed and breakfasting) also applies -- if you sell and repurchase the same coin within 30 days, the repurchase price is matched to the disposal first. When Income Tax Applies Instead Crypto received as employment income, mining rewards (where carried out as a trade), staking income, and airdrops that constitute income are subject to income tax and National Insurance at your marginal rate, not CGT. Record-Keeping You must keep records of every transaction: date, value in GBP at the time, amount of crypto, and any associated costs. Historic GBP values must be calculated at the time of each transaction. Many exchanges do not provide full HMRC-compliant records, so specialist crypto tax software is widely used. Self Assessment If your total gains exceed the AEA (GBP 3,000) or your total proceeds exceed GBP 50,000 in the tax year, you must report on a Self Assessment return. The deadline is 31 January following the end of the tax year.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.