Answers · UK 2025/26
How is CGT calculated on cryptoasset disposals in the UK?
HMRC treats cryptoassets (cryptocurrency, NFTs, utility tokens) as capital assets. When you sell, exchange, or gift them, you realise a capital gain or loss. CGT applies above the £3,000 annual exempt amount. Gains are taxed at 18% (basic rate) or 24% (higher rate) from October 2024 rates.
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**How HMRC treats crypto** HMRC's position (Cryptoassets Manual) is that Bitcoin, Ethereum, and most other tokens are capital assets — not currency. This means CGT applies to disposals, not income tax (unless you are mining, staking at scale, or trading as a profession). **What counts as a disposal?** - Selling crypto for £ sterling - Exchanging one cryptocurrency for another (e.g. BTC → ETH is a disposal of BTC) - Using crypto to pay for goods or services - Gifting crypto (except to a spouse/civil partner) - Receiving crypto airdrops may be income; subsequent disposal creates CGT **CGT rates (2026/27)** - CGT annual exempt amount: £3,000 - Basic-rate taxpayer: 18% on gains (for residential property: 18%; for other assets including crypto: 18%) - Higher/additional-rate taxpayer: 24% on gains Note: CGT rates on assets other than residential property were aligned at 18%/24% from October 2024. **The pooling rule** HMRC uses a pooling method (Section 104 pool) for identical tokens. Your allowable cost is the average cost of all units of that token ever acquired (adjusted for disposals). **Example: James** James bought 1 ETH at £1,200 and another 1 ETH at £2,800. Average cost = £2,000. He sells 1 ETH for £4,500. - Gain = £4,500 − £2,000 = £2,500 - Below his £3,000 exempt amount — no CGT due If he also sells 0.5 ETH for £2,500: - Cost: 0.5 × £2,000 = £1,000 - Gain: £2,500 − £1,000 = £1,500 - Total gains: £2,500 + £1,500 = £4,000 − £3,000 exempt = £1,000 taxable - Higher-rate taxpayer: £1,000 × 24% = £240 CGT **Record keeping** HMRC expects records of every transaction: date, amount of crypto, value in £ at time of transaction, fees paid. Exchange statements alone are often insufficient — use specialist crypto tax software (Koinly, CoinTracker, etc.). **Same-day and 30-day rules** Crypto bought and sold on the same day is matched first (same-day rule). Crypto acquired within 30 days after disposal is matched next (bed-and-breakfasting rule). Only then does the Section 104 pool apply.
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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.