CGT on Crypto vs Shares: Key Differences UK 2026/27

Both crypto and shares use Section 104 pooling -- but the similarities end there. Crypto adds a longer list of disposal events, no bed-and-ISA route, staking taxed as income, and HMRC now receiving exchange data through DAC7. This guide explains every key difference, with worked examples at basic and higher rate for 2026/27.

Updated: June 2026Tax year: 2026/27~10 min read

The shared foundation: Section 104 pooling

HMRC applies the same pooling logic to crypto and shares. Every time you acquire Bitcoin (for example), your total Bitcoin pool grows: the number of coins and the total allowable cost both increase. When you sell, you dispose of a proportionate slice of the pool. The gain is the disposal proceeds minus the proportionate cost.

This matters because it prevents cherry-picking. You cannot choose to sell the specific coins you bought cheapest (and defer gains on expensive ones) -- the pool averages everything. The same rule applies to shares of the same class in the same company. It is a deliberately simple system, but it creates real record-keeping demands for active traders with hundreds of transactions per year.

Layered on top of the pool are the same-day rule and the 30-day rule (the bed-and-breakfasting rule). Acquisitions on the day of a disposal, or within 30 days after, are matched to that disposal first -- before the pool. These rules exist for both shares and crypto, but for crypto they catch far more taxpayers because of the frequency and automation of trading activity.

CGT rates and annual exempt amount 2026/27

Annual Exempt Amount (AEA): GBP 3,000 (combined across all assets including shares and crypto)
Basic-rate CGT: 18% where gains plus income fall within the basic-rate band (up to GBP 50,270)
Higher/additional-rate CGT: 24% where gains plus income exceed GBP 50,270
Residential property: same rates (18%/24%) but with separate 60-day reporting requirement
BADR (Business Asset Disposal Relief): 18% on qualifying business disposals up to GBP 1m lifetime limit
BADR does not apply to ordinary share portfolios or cryptoasset holdings
Personal Allowance: GBP 12,570 (tapered above GBP 100,000; gone at GBP 125,140)
Dividend allowance (for shares): GBP 500; rates 10.75% basic / 35.75% higher / 39.35% additional

The CGT rate is the same for crypto and shares -- there is no premium or discount for either asset class in isolation. What differs is how the gain is calculated and what events trigger a disposal.

What counts as a disposal: crypto vs shares

This is where crypto and shares diverge sharply. For shares, disposals are predictable: you sell, gift, or transfer shares. Company reorganisations and share-for-share exchanges are usually paper-for-paper rollover events that defer (not cancel) the gain. Straightforward to track.

For crypto, HMRC treats all of the following as disposals that trigger CGT:

Selling crypto for GBP or any other fiat currency -- the obvious one.
Exchanging one cryptoasset for another -- swapping Bitcoin for Ethereum, even within a single platform and with no GBP involved, is a disposal of Bitcoin at market value and an acquisition of Ethereum at that same market value.
Using crypto to pay for goods or services -- paying a vendor GBP 500 worth of Bitcoin is a disposal of Bitcoin at GBP 500 proceeds.
Gifting crypto to a third party -- gifting to a spouse or civil partner is a no-gain no-loss transfer, but gifting to anyone else is a disposal at market value.
Loss of private key (negligible value claim) -- if you permanently lose access to a wallet and can satisfy HMRC that the coins are irrecoverable, you may make a negligible value claim, treating the disposal proceeds as zero. This crystallises a loss equal to the cost base.

Moving coins between your own wallets -- for example from a hot wallet to a hardware wallet -- is not a disposal. But you must be able to demonstrate that both wallets belong to you. Transfers to a wallet you do not control (for example sending coins to a friend as a gift) are disposals.

Bed-and-ISA: available for shares, impossible for crypto

Bed-and-ISA is one of the most effective legal CGT reduction strategies for share investors. The process: sell shares in a general investment account (GIA), crystallise the gain (using some or all of the GBP 3,000 AEA), then repurchase the same shares inside a Stocks and Shares ISA the next day or later. Future gains and income inside the ISA are sheltered from tax permanently. The ISA allowance is GBP 20,000 per year in 2026/27, allowing substantial shelter over time.

Note that the 30-day rule does not apply to bed-and-ISA if the repurchase happens the next working day (which is after the disposal date), provided the ISA purchase is a genuine ISA subscription and not a transfer of existing shares. HMRC accepts this because the purpose of the 30-day rule is to prevent artificial loss creation, not to penalise ISA use.

Crypto investors have no equivalent. ISA managers cannot accept cryptoassets under current HMRC rules. There is no crypto-ISA product available in the UK in 2026/27. The GBP 3,000 AEA remains the primary shelter, supplemented by spousal transfers (no gain no loss) to double the effective annual shelter to GBP 6,000. For large crypto holders this is a significant structural disadvantage versus equities.

Staking rewards: taxed as income, not capital

Staking involves locking up cryptoassets in a blockchain network to validate transactions in return for rewards. HMRC treats these rewards as miscellaneous income (or trading income if the activity is large and systematic enough to constitute a trade). The taxable amount is the GBP sterling value of the coins on the day you receive them, taxed at your marginal Income Tax rate.

The staking coins then have a cost base equal to the value already taxed as income. When you later sell those coins, you pay CGT (or get a loss) on the difference between disposal proceeds and that cost base. So staking is potentially taxed twice: once as income, once as capital gain.

Shares do not have this dual taxation in the same way. Dividends are taxed as income under the dividend regime (GBP 500 allowance, then 10.75%/35.75%/39.35% in 2026/27). Scrip dividends (share dividends) are treated as income on receipt, with the market value of the shares becoming the cost base for CGT. The mechanics are similar, but dividend tax rates are lower than the marginal Income Tax rates that apply to staking income for most taxpayers.

Lending crypto (providing liquidity to a DeFi protocol) may be treated differently again -- HMRC guidance is still evolving in this area. If lending involves transferring beneficial ownership to the protocol, it may trigger a disposal. If it does not, the interest income is taxed as income without a CGT disposal event at lending. Professional advice is recommended for complex DeFi activity.

HMRC data: DAC7 reporting for crypto exchanges

From January 2024, UK crypto exchanges must submit annual DAC7 reports to HMRC covering all UK-resident users. The data includes full name, address, date of birth, National Insurance number, and transaction volumes. HMRC cross-references this against Self Assessment returns using its Connect data-matching system.

For shares, brokers have reported UK investor transactions to HMRC via the CREST system for many years. The difference is that crypto DAC7 data is newer, so there is a backlog of taxpayers who traded crypto before 2024 and never reported. HMRC has issued nudge letters to crypto holders identified through exchange data. Voluntary disclosure via HMRC Voluntary Disclosure facility is always preferable to waiting for an investigation.

In practical terms: if you traded crypto in 2021 to 2023 on a UK exchange and did not declare gains, HMRC may already have your data. The combination of DAC7 reporting plus HMRC Connect makes crypto one of the highest-risk areas for undeclared gains in 2026/27. Declaring accurately -- including losses -- is the only prudent course.

Worked examples: basic rate and higher rate

The following examples use 2026/27 figures. Both taxpayers sell shares and crypto in the same tax year. We show how the CGT calculation works for each.

Example A: Basic-rate taxpayer (salary GBP 35,000)

The taxpayer earns GBP 35,000 PAYE. They sell shares for a GBP 8,000 gain and Bitcoin for a GBP 5,000 gain in 2026/27. Total gains: GBP 13,000. Less AEA: GBP 3,000. Taxable gain: GBP 10,000.

Remaining basic-rate band after income: GBP 50,270 minus GBP 35,000 = GBP 15,270. The GBP 10,000 taxable gain fits entirely within the remaining basic-rate band. CGT rate: 18%. CGT due: GBP 10,000 x 18% = GBP 1,800.

If instead the taxpayer had crypto losses of GBP 3,000 from an earlier exchange swap disposal (claimed in a prior year), they can set GBP 3,000 of brought-forward losses against gains -- but only down to the AEA level (GBP 3,000 net of losses). Since net gains without losses are GBP 10,000 (already below the taxable gain) -- in this case the brought-forward losses reduce taxable gains to GBP 7,000, saving GBP 540 in CGT.

Example B: Higher-rate taxpayer (salary GBP 75,000)

The taxpayer earns GBP 75,000 PAYE. They sell an ETF for a GBP 12,000 gain and Ethereum for a GBP 6,000 gain. Total gains: GBP 18,000. Less AEA: GBP 3,000. Taxable gain: GBP 15,000.

Income of GBP 75,000 already exceeds the GBP 50,270 higher-rate threshold. All of the GBP 15,000 taxable gain is at the higher rate of 24%. CGT due: GBP 15,000 x 24% = GBP 3,600.

If the taxpayer had also received GBP 2,400 of Ethereum staking rewards during the year, those rewards are taxed as income at 40% -- GBP 960 Income Tax. The staking coins then have a GBP 2,400 cost base. If sold later for GBP 3,000, only the GBP 600 difference is subject to CGT (at 24% if still higher rate = GBP 144).

Item	Shares	Crypto
Pooling method	Section 104 average cost	Section 104 average cost (per token type)
Same-day matching rule	Yes -- rarely triggered	Yes -- frequently triggered by bots/DCA
30-day anti-avoidance rule	Yes	Yes -- applies across all exchanges
Disposal: sale for fiat	Yes	Yes
Disposal: asset swap	Usually paper-for-paper rollover	Yes -- every token swap is a disposal
Disposal: gift to third party	Yes -- at market value	Yes -- at market value
Disposal: lost asset	No equivalent	Negligible value claim (lost key)
Bed-and-ISA shelter	Yes -- GBP 20,000 ISA allowance	No -- crypto not ISA-eligible
Yield income tax treatment	Dividend regime (GBP 500 allowance)	Income Tax on staking/lending rewards
CGT rate (basic rate taxpayer)	18%	18%
CGT rate (higher rate taxpayer)	24%	24%
Annual Exempt Amount	GBP 3,000 (shared with crypto)	GBP 3,000 (shared with shares)
HMRC data reporting	CREST (long-established)	DAC7 since January 2024 (growing)
Spousal transfer (no gain no loss)	Yes	Yes
Record-keeping complexity	Low -- broker statements sufficient	High -- every swap, stake, spend recorded

Same-day and 30-day rule: the anti-avoidance traps

Both rules exist for shares and crypto, but they bite differently. For shares, most investors do not rebuy within 30 days -- so the rule is a theoretical constraint. For crypto, automated trading bots, yield farming rotation, and DCA (dollar-cost averaging) scripts routinely trigger same-day matching without the investor realising.

A practical example: you hold 1 Bitcoin in your pool at an average cost of GBP 20,000. You sell 0.5 BTC on 1 June for GBP 15,000 (= GBP 30,000 full-coin proceeds). Your DCA bot buys 0.1 BTC on 3 June for GBP 6,200 (= GBP 62,000 implied full-coin price). Under the 30-day rule, that 0.1 BTC acquisition is matched against the 0.5 BTC disposal first, at the actual acquisition cost of GBP 6,200 for 0.1 BTC. The remaining 0.4 BTC is matched against the pool. The matching prevents you from realising a pool average gain and then inflating your cost base by buying high immediately after.

For tax planning purposes: if you intend to crystallise a loss on crypto (for example to offset gains elsewhere), do not rebuy the same token within 30 days. If you rebuy on a different exchange on day 31 or later, the loss stands. Crypto tax software (Koinly, CoinTracker, TaxBit UK) can flag same-day and 30-day matches automatically -- essential for active traders with many transactions.

Claiming losses: carry-forward and negligible value

CGT losses from shares and crypto are both carried forward indefinitely -- but only if formally claimed on a Self Assessment return within four years of the tax year in which they arose. A loss in 2022/23 must be claimed by 5 April 2027.

For crypto specifically, two additional loss scenarios arise that have no share equivalent. First, exchange collapse: if a crypto exchange becomes insolvent and you cannot recover your coins, you may have a capital loss -- but only if HMRC accepts that you have permanently lost beneficial ownership. Second, rug pulls and scam tokens: worthless tokens may qualify for a negligible value claim (treating the holding as disposed of at GBP 0). You must apply to HMRC for approval; you cannot simply write the loss off on your return without a negligible value determination.

Brought-forward losses from shares and crypto can be offset against each other -- there is no ring-fencing. But they must be applied in the correct order: current-year losses first (mandatory), then brought-forward losses (only to the extent that net gains exceed the GBP 3,000 AEA). You cannot use brought-forward losses to create a net loss position below the AEA -- you would simply waste the AEA.

Practical summary: what investors need to do differently

Share investors need to track their Section 104 pool (most brokers provide this automatically), use bed-and-ISA each tax year to shelter up to GBP 20,000 of future gains, claim losses within four years, and check whether dividend income exceeds the GBP 500 allowance.

Crypto investors must do all of the above (without the ISA option) plus: record every token swap as a disposal; track staking income in GBP on the day of receipt; watch for accidental same-day and 30-day matching from bots or DCA; consider spousal transfers to use both partners AEA (GBP 6,000 combined); and ensure past years unreported gains are disclosed before HMRC contacts them using DAC7 data.

The tax rate is the same -- 18% basic, 24% higher. The record-keeping burden is dramatically higher for crypto. Investors holding both should consolidate their CGT position annually, net crypto and share gains and losses across the portfolio, and use the GBP 3,000 AEA strategically each year to crystallise gains at zero tax cost rather than letting unrealised gains accumulate into a large future liability.

Frequently Asked Questions

Does Section 104 pooling apply to crypto in the same way as shares?

Yes -- HMRC treats each type of cryptoasset (for example, all Bitcoin held by one person) as a single Section 104 pool, exactly as it does for shares of the same class in the same company. When you buy, the total cost and total number of coins in the pool both increase. When you dispose, you calculate the proportion of the pool cost attributable to the coins sold. The average cost per coin updates after every acquisition. The mechanics are identical to shares, but the complication is that crypto wallets and exchanges often record hundreds of small transactions, making pool tracking laborious.

How does the same-day rule work differently for crypto compared to shares?

The same-day rule (and the 30-day rule that follows it) exists for both shares and crypto to prevent bed-and-breakfasting -- selling at a gain or loss and immediately rebuying to reset the cost base without genuinely exiting the position. For shares, the rule is well understood: acquisitions on the same day as a disposal are matched first, ahead of the Section 104 pool. For crypto, the same rule applies but is much more likely to be triggered accidentally. Traders who use automated bots, DCA strategies, or who buy and sell the same asset multiple times per day on different exchanges can trigger same-day matching on transactions they did not intend to pair. HMRC expects you to track this accurately.

What counts as a disposal for crypto but not for shares?

For shares, a disposal is straightforward: you sell or gift shares. For crypto, HMRC classes the following as disposals triggering CGT: selling crypto for GBP or foreign currency; exchanging one cryptoasset for another (for example, swapping Bitcoin for Ethereum -- even if no GBP is involved); using crypto to pay for goods or services; gifting crypto to someone other than a spouse or civil partner; and losing access to a private key (in limited circumstances, with HMRC approval). Moving coins between your own wallets is not a disposal. Shares have no equivalent "exchange" disposal -- swapping one share class for another under a company reorganisation is usually a paper-for-paper transaction exempt from immediate CGT.

Show 7 more questions

Can I use bed-and-ISA to shelter crypto gains?

No. Bed-and-ISA is a strategy for shares: you sell shares outside an ISA (realising the gain or loss), then repurchase the same shares inside a Stocks and Shares ISA so future growth is sheltered. This works because ISAs can hold listed shares. Cryptoassets are not eligible ISA investments under HMRC rules -- ISA managers cannot accept Bitcoin, Ethereum or any other cryptoasset. There is therefore no direct equivalent of bed-and-ISA for crypto. The only ways to shelter crypto gains are to use the GBP 3,000 annual exempt amount (AEA), to make losses to offset gains, or to transfer coins to a spouse or civil partner (no gain no loss) who has their own AEA.

Is staking income subject to CGT or Income Tax?

Staking rewards are generally treated as income (miscellaneous income) at the time of receipt, not as a capital gain. The value on the day you receive the staking reward is the taxable income figure. That same value becomes your cost base for CGT purposes when you later dispose of the staked coins. So staking is taxed twice in a sense: once as income when received, and once as a capital gain (or loss) if the coins rise (or fall) in value before disposal. HMRC published detailed guidance on cryptoassets in 2019 and updated it subsequently. Shares do not have an equivalent: dividends from shares are taxed under the dividend tax regime (GBP 500 allowance, then 10.75% basic / 35.75% higher / 39.35% additional in 2026/27), which is separate from CGT.

What is the CGT annual exempt amount for 2026/27 and how does it apply to crypto and shares?

The CGT annual exempt amount (AEA) for 2026/27 is GBP 3,000. This applies to net capital gains from all sources combined -- shares, crypto, second properties (though residential property gains are ring-fenced at higher rates), and other assets. You cannot claim a separate GBP 3,000 for crypto and another GBP 3,000 for shares. The AEA has been reduced sharply from GBP 12,300 in 2022/23, so more taxpayers now have CGT liability. If your combined net gains from shares and crypto exceed GBP 3,000 in 2026/27, you must report and pay CGT on the excess.

What are the CGT rates on shares and crypto in 2026/27?

CGT rates on shares and crypto in 2026/27 are: 18% for basic-rate taxpayers (where gains, when added to income, fall within the basic-rate band up to GBP 50,270) and 24% for higher or additional-rate taxpayers. These rates apply to both shares and cryptoassets -- they are taxed identically in terms of the rate applied. Note that residential property has the same rates (18%/24%) but uses separate 60-day reporting rules. Business Asset Disposal Relief (BADR) at 18% applies to qualifying business disposals up to a GBP 1 million lifetime limit, but this does not cover ordinary share portfolios or crypto holdings.

How does HMRC obtain data on crypto transactions through DAC7?

DAC7 is a European data-sharing directive that the UK has implemented domestically. From January 2024, digital platforms including cryptocurrency exchanges must report user transaction data to HMRC annually. UK crypto exchanges (Coinbase, Kraken, Binance UK and others) now share account holders names, addresses, dates of birth, and transaction volumes with HMRC. HMRC also uses its own Connect system to match data from exchanges against Self Assessment returns. In practice this means HMRC already knows about many UK residents crypto activity before they file a tax return. Underreporting crypto gains is increasingly detectable -- the risk of investigation is materially higher than for shares, where brokers have reported to HMRC via CREST for decades.

Do I need to report crypto losses to HMRC even if I have no gain?

Yes -- and you should. Crypto losses can be carried forward indefinitely to offset future gains, but only if you formally claim them on your Self Assessment return within four years of the tax year in which the loss arose. If you do not claim the loss, you cannot use it in future years. For shares, the same rule applies. HMRC does not automatically apply losses -- you must claim them. Given the volatility of crypto markets, many investors accumulated large unrealised losses in 2022 and 2023; claiming those losses now creates a valuable shield against future gains. Lost coins or coins sent to an unrecoverable address may qualify for a negligible value claim -- effectively treating them as disposed at zero to crystallise the loss.

Can I offset crypto losses against share gains and vice versa in 2026/27?

Yes. CGT losses from any asset class (including crypto) can be offset against gains from any other asset class (including shares) in the same tax year, after applying the annual exempt amount. There is no ring-fencing between crypto and shares for CGT purposes. The order of offset is: first apply losses from the current year against gains; then apply brought-forward losses from earlier years, but only down to the GBP 3,000 AEA level (you cannot use brought-forward losses to create a loss below the AEA threshold). This flexibility is valuable -- a portfolio containing both shares and crypto can net off gains and losses across both to minimise the CGT bill.

Run the Numbers

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Disclaimer: Figures reflect UK 2026/27 tax rules as published by HMRC and gov.uk. CGT rates, the annual exempt amount, and ISA eligibility rules are subject to change. Crypto tax treatment -- particularly for DeFi, staking, and lost assets -- continues to evolve and HMRC guidance may be updated. This page is for information only and does not constitute financial or tax advice. Verify current rates at gov.uk and consult a qualified tax adviser for your personal position.

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The CalcHub Editorial team researches, writes and reviews every calculator, guide and article published on CalcHub.uk. Our remit is to translate the rules that govern UK personal finance — income tax bands, National Insurance thresholds, stamp duty slabs, Ofgem price caps, NHS health metrics, DVLA road-tax bands — into tools and explanations that anyone can use in under a minute. Every figure we publish is traced to a primary source: HMRC, Revenue Scotland, the Welsh Revenue Authority, Land & Property Services NI, DWP, Ofgem, the Bank of England, ONS, NHS or DVLA. We cross-check our calculator outputs against HMRC reference calculators to within £1 of accuracy where they exist, and against worked examples in legislation where they do not. The team conducts a full content review every 6 April when the UK tax year turns over, with event-driven updates within 7 days of a Budget, Autumn Statement, MPC base-rate decision or new Ofgem price cap. We do not sell financial products, take affiliate commission on regulated products, or accept payment for editorial placement. Our full editorial standards, sources list and corrections policy are published on the Editorial Policy and Sources pages.

All figures cross-checked against HMRC and gov.uk
Annual review every 6 April
Event-driven updates within 7 days of fiscal announcements

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