What is Cryptoasset Disposal?

Full Definition

HMRC treats cryptoassets (including cryptocurrency such as Bitcoin and Ether, utility tokens, security tokens and NFTs) as capital assets for UK tax purposes. A disposal -- any transaction that results in you no longer holding a cryptoasset -- is a Capital Gains Tax (CGT) event. Disposals include: selling crypto for sterling or another fiat currency; exchanging one cryptocurrency for another (even a like-for-like swap); gifting crypto to someone other than your spouse or civil partner; using crypto to pay for goods or services; and receiving crypto as payment for employment (which is taxed as income first, then any subsequent gain on disposal is subject to CGT). The gain or loss is calculated by subtracting the allowable cost (the acquisition price plus reasonable transaction fees) from the disposal proceeds. HMRC applies a specific set of matching rules for pooling acquisitions: the "30-day rule" (same-day and next-30-days acquisitions are matched first to prevent bed-and-breakfasting), then the "Section 104 pool" for all remaining coins of the same type. From April 2025, crypto exchanges are required to report users' transactions directly to HMRC, significantly increasing the risk of HMRC detecting undeclared gains. The CGT annual exempt amount for 2026/27 is £3,000. Losses can be offset against other capital gains in the same or future tax years if reported within four years.

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