Answers · UK 2025/26
Do I pay tax on cryptocurrency in the UK?
Yes. Crypto disposals (selling, swapping, gifting, spending) are subject to Capital Gains Tax above the £3,000 annual exemption. Mining and staking rewards count as miscellaneous income or trading income depending on scale. Report via Self Assessment.
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UK tax on cryptocurrency (HMRC views crypto as assets, not currency). Disposals — Capital Gains Tax applies when you sell crypto for fiat, swap one crypto for another, gift crypto (except to spouse/civil partner), or spend crypto on goods/services. Annual Exempt Amount £3,000 (2025/26). Rates 18% (basic) / 24% (higher), same as other assets after the October 2024 Budget. Mining and staking — usually miscellaneous income at receipt (Income Tax + NI if trading-scale), plus CGT on later disposal. Trading income — if frequency/sophistication suggest a trade, full Income Tax + Class 4 NI. Lost coins, scams, exchange collapses — can be claimed as a capital loss under "negligible value" rules. Tax events to log: all disposals, fair market value at each event, pooling rules apply per token (Section 104 style). UK exchanges report to HMRC; Common Reporting Standard means foreign exchange data also flows to HMRC. Report via Self Assessment by 31 January. Use crypto-tax software like Koinly, CoinTracker, Recap.
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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.