UK crypto tax: what you owe HMRC and when to report it

UK crypto tax works in two parts. Selling, swapping or spending crypto can trigger Capital Gains Tax once your total gains in a tax year pass the £3,000 allowance. Crypto you receive as pay, or from mining, staking or lending, is usually taxed as income instead. This page covers UK (HMRC) rules only, with the tax year each figure applies to.

Do you have to pay tax on crypto in the UK?

Buying crypto and holding it is not taxed. Tax arises when you dispose of it, or when you receive it as income. HMRC counts these as disposals:

• selling crypto for pounds or another currency
• exchanging it for a different type of cryptoasset
• using it to pay for goods or services
• giving it away

The exception is a gift to your spouse, civil partner or charity, which is not a taxable disposal. HMRC's guidance on selling cryptoassets lists all of these. If you want to see how a purchase or a sale works in practice before you worry about the tax, read how buying and selling crypto works.

Capital gains tax on crypto in the UK

The tax-free allowance, year by year

You only pay Capital Gains Tax when your total gains for the tax year exceed the annual exempt amount for individuals. The UK tax year runs from 6 April to 5 April. The allowance has fallen sharply in recent years:

The earlier figures come from HMRC's rates and allowances page. The £3,000 for 2026-27 is on the GOV.UK Capital Gains Tax rates page, checked on 3 November 2026.

How much tax on crypto in the UK

Crypto gains are taxed at the rates HMRC lists for other assets. Those rates changed during the 2024-25 tax year:

• From 6 April to 29 October 2024: 10% and 20%.
• From 30 October 2024: 18% and 24%, which also applied for 2025-26.
• For 2026-27: 18% on gains within the basic rate band, and 24% above it.

Higher and additional rate taxpayers pay 24% on their gains from 6 April 2026. Which rate applies to you depends on your other income, so check your own position with HMRC or a qualified adviser. Crypto gains tax in the UK applies only to the gain above your allowance, not to the whole sale price.

How HMRC works out your crypto gain

A gain is normally the value you sold for minus what the tokens cost you. In some cases HMRC uses market value instead, for example when you transfer crypto between connected persons.

Two rules shape the cost figure:

• Pooling. Tokens of the same type are grouped into a pool, and their cost is averaged.
• Same day and 30 days. Tokens you buy on the same day as a sale are matched to it first, then tokens you buy in the 30 days after it. Only what is left uses the pool's average cost.

Allowable costs include transaction fees, advertising, contract drafting, valuation costs and your share of the pooled cost. Costs you claim against Income Tax do not count, and neither do mining costs such as equipment or electricity.

Here is an illustration with invented round numbers, not a real case. You buy one token of type A for £10,000 and later a second for £20,000. The pool holds two tokens that cost £30,000 in total, so the average cost is £15,000 each. You sell one for £25,000 and buy no more type A tokens in the next 30 days. Your gain is £10,000. If you have no other gains or losses that year, £7,000 is taxable after the £3,000 allowance, at 18% on the part within your basic rate band and 24% on any part above it. Which share falls in each band depends on your other income.

Crypto you receive as income

Crypto from employment, mining, staking, lending or DeFi usually counts as income, though the exact treatment depends on the facts. Income Tax can apply, and National Insurance can also apply, mainly when the crypto comes from employment. If an employer pays you in readily convertible tokens such as bitcoin, you pay Income Tax and National Insurance through PAYE.

For 2026-27 there is a £1,000 allowance for trading and miscellaneous income. If your income of this kind is between £1,000 and £2,500, contact HMRC. Above £2,500, register for Self Assessment.

Legal ways to reduce the tax you pay

If you want to know how to pay less tax on crypto legally, the options are limited, all of them are reliefs HMRC sets out, and whether each one helps depends on your circumstances:

• Use your annual allowance, which is £3,000 for 2026-27.
• Gifts to a spouse, civil partner or charity are not taxed as disposals.
• Capital losses can reduce your gains, but you need to report them to HMRC first.
• The £1,000 trading and miscellaneous income allowance can cover small amounts of income.

Hiding disposals is not an option. From 2026, UK crypto providers collect your details, and those within the rules report UK users to HMRC, as the section below explains.

Reporting crypto to HMRC and the deadlines

You do not have to pay Capital Gains Tax if all your gains in a year are under your allowance. Above it, you report the gains and pay the tax. If you file a Self Assessment return, you must also report when the total you sold assets for in the year, across all chargeable assets and not only crypto, exceeds £50,000, even if your gains are below the allowance. That rule applies from 2023-24.

For the 2025-26 tax year, as of 3 November 2026:

• If you were new to Self Assessment, you had to register by 5 October 2026. That date has passed.
• File a paper return by 31 October 2026. That date has also passed.
• File an online return and pay by 31 January 2027.

Exchanges now report your crypto to HMRC

Under the Cryptoasset Reporting Framework, UK cryptoasset service providers that fall within the rules report details and transaction summaries for reportable users, including people tax resident in the UK. The first reporting period runs from 1 January 2026 to 31 December 2026, and providers submit their first report by 31 May 2027. For how those providers are supervised, see how the FCA regulates crypto firms.

To use a UK provider you must give your full name, date of birth, address, country of residence and a tax ID, which can be your National Insurance number or Unique Taxpayer Reference. HMRC's page on what you need to give providers has the detail. Inaccurate or missing details can bring a penalty of up to £300.

New reporting rules also give scammers a hook. Read about fake HMRC refund and recovery scams before you act on any message that claims to come from the tax office.

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