Glossary · UK
What is Crypto Pooling?
The HMRC method of grouping identical cryptoassets into a single pool to calculate the average cost when working out Capital Gains Tax.
Full Definition
Crypto pooling is the way HMRC requires individuals to calculate gains and losses on cryptoassets. Tokens of the same type are grouped into a 'section 104' pool, and the pool holds the total quantity and the total allowable cost. When you sell or otherwise dispose of some tokens, you work out the gain using the average cost of the pool, apportioned to the amount disposed of. Two special same-day and 30-day (bed-and-breakfasting) matching rules apply first, before the pool, to stop short-term reacquisitions resetting the cost. Disposals include selling for fiat, swapping one token for another, and using crypto to pay for goods, so many transactions are taxable events. Gains above the Capital Gains Tax Annual Exempt Amount of GBP 3,000 for 2026/27 are taxed at 18% within the basic-rate band and 24% above it. Accurate pooling records are essential because exchanges rarely supply UK-ready figures, and HMRC expects you to report and pay any tax through Self Assessment.