Crypto tax in the UK explained

Crypto tax in the UK follows a simple principle: HMRC treats cryptoassets as property, not money. When you sell, swap or spend crypto at a profit, you may owe Capital Gains Tax; when you receive crypto as income, from mining, staking, airdrops or app rewards, you may owe Income Tax. Since 30 October 2024 the CGT rates are 18% and 24%, the tax-free allowance is just £3,000, and from 2026 UK crypto platforms report customer data to HMRC under the new CARF rules. This guide covers the rates, the allowance and pooling rules, income from crypto, Self Assessment, and worked examples with a gains calculator.

This article is general information, not tax advice. Tax rules depend on your circumstances and can change. Check HMRC guidance or speak to a qualified adviser before filing.

Is crypto legal in the UK? FCA registration in brief

Yes. Buying, holding and selling crypto is legal in the UK. Firms offering crypto services must register with the Financial Conduct Authority for anti-money-laundering purposes, and crypto promotions must follow FCA rules with clear risk warnings. Crypto is not covered by the Financial Services Compensation Scheme, so if a platform fails you are unlikely to get your money back. More on legality around the world: is crypto legal.

Capital Gains Tax on crypto: 18% and 24% rates

A disposal happens when you sell crypto for pounds, swap one coin for another, spend crypto on goods or services, or give it away to someone other than your spouse or civil partner. Simply moving coins between your own wallets is not a disposal.

The annual exempt amount and pooling rules

• Annual exempt amount: the first £3,000 of total capital gains in a tax year is tax-free.
• Section 104 pool: tokens of the same type are pooled, and your cost is the average cost of the pool.
• Same-day rule: if you buy and sell the same token on the same day, those are matched first.
• 30-day rule: if you sell and buy back the same token within 30 days, the sale is matched to the repurchase.
• Losses: capital losses can offset gains and, if reported, be carried forward.

Income tax: mining, staking, airdrops and app rewards

Crypto you receive in return for doing something is usually income at its pound value when received. That includes mining and staking rewards, airdrops received in exchange for actions, and crypto paid by apps or employers. If you later sell those tokens, any rise in value since you received them is a capital gain. Hobby-level amounts may fall under the £1,000 trading allowance. If you earn crypto from side work, see side hustles in the UK.

Self Assessment and the new CARF data sharing

You report capital gains and crypto income through Self Assessment. For the 2025-26 tax year, the online filing deadline is 31 January 2027. From 1 January 2026, UK crypto platforms must collect customer details and report transactions to HMRC under the Cryptoasset Reporting Framework, so assume HMRC will see your activity. Keep records of every transaction: date, token, amount, value in pounds and fees.

Worked examples with a gains calculator

You bought 0.1 BTC for £5,000 and later sold it for £8,500, paying £50 in fees. Your gain is £8,500 minus £5,050, which is £3,450. After the £3,000 allowance, £450 is taxable: £81 at 18% or £108 at 24%. Try your own numbers below, or use the full crypto profit calculator.

New to crypto basics? Start with what is cryptocurrency.

Small rewards still count

TotalHash is a free mining game in Telegram. Tasks pay small amounts of USD₮ and GRAM to a TON wallet; keep a note of what you receive. No income promises.

FAQ

How much tax do you pay on crypto in the UK?

Capital Gains Tax at 18% or 24% on gains above the £3,000 annual allowance, plus Income Tax on crypto received as income.

Is swapping one crypto for another taxable in the UK?

Yes, a swap is a disposal and can create a capital gain.

Are staking rewards taxed in the UK?

Usually as income at their pound value when received, with CGT on any later gain.

Will HMRC know about my crypto?

From 2026 UK platforms report customer transactions to HMRC under CARF.