United Kingdom — tax on crypto and investments

Country	Currency	Tax year	Authority	Last verified	Status
GB	GBP	6 April – 5 April	HM Revenue & Customs (HMRC)	28-10-2026	approved by the owner (accountant), 28-10-2026

Not tax advice. Rules summarised from official sources, linked where each rule is stated, as verified on the date above. Confirm with a qualified adviser before filing.

Core principle. For a UK-resident individual who is investing, not trading, a disposal of crypto is a Capital Gains Tax (CGT) event. Cost is taken from a section 104 pool per token type (average cost), after the same-day and 30-day matching rules. Plain FIFO is not the UK method.

At a glance#

Item	Rule
Tax year	6 April – 5 April
Filing deadline (individuals)	Online 31 January after tax year end (2025/26: 31-01-2027). Paper 31 October (2025/26: 31-10-2026). Registration 5 October
Crypto legal / tax classification	Not currency or money. Treatment follows the token's nature and use (exchange, utility, security, stablecoin). Located where the beneficial owner is resident
Capital gains on crypto	CGT 18% (within unused basic-rate band) / 24% (above), from 30-10-2024. Trading in exceptional cases: income tax instead
Capital gains on shares / funds	Same CGT rates as crypto from 30-10-2024
Holding-period relief	None
Annual exemption / allowance	£3,000 individuals (2024/25, 2025/26, 2026/27); £1,500 most trustees
Losses (offset, carry-forward)	Same-year gains first; then brought-forward losses down to the allowance; remainder carried forward. Claim within 4 years of the end of the tax year of disposal
Cost-basis method required	Same-day rule (s105 TCGA 1992), then 30-day rule (s106A), then s104 pool (average cost). NFTs not pooled
Staking / mining / airdrops	Non-trade staking and mining: miscellaneous income at GBP value on receipt. Airdrops: income only if given for, or in expectation of, a service. Later disposal: CGT
Crypto-to-crypto swaps	Disposal for CGT
Spending crypto	Disposal for CGT. Gift is a disposal except to spouse / civil partner
VAT / GST on crypto	Exchange crypto↔fiat exempt (Item 1, Group 5, Sch 9 VATA 1994). Mining generally outside scope. Goods paid in crypto: VAT as normal on the goods
Withholding or transaction tax	No crypto transaction tax found. Shares: 0.5% SDRT / Stamp Duty (Stamp Duty only over £1,000 on paper transfers)
Reporting obligations (forms, foreign accounts)	SA108 has a separate cryptoasset section (boxes 13.1–13.8) from 2024/25. CARF: UK providers collect user data from 01-01-2026; first report 01-01-2027 to 31-05-2027

Capital gains#

Rates and allowance#

Tax year / period	Individuals	Trustees / PRs	Annual exempt amount (individuals / most trustees)
2023/24 (reference)	10% / 20%	20%	£6,000 / £3,000
2024/25, 06-04-2024 to 29-10-2024	10% / 20%	20%	£3,000 / £1,500 (whole year)
2024/25, 30-10-2024 to 05-04-2025	18% / 24%	24%	(same allowance)
2025/26	18% / 24%	24%	£3,000 / £1,500
2026/27	18% / 24%	24%	£3,000 / £1,500

The lower rate applies to gains that fit in the unused basic-rate band; the rest is at the higher rate.
Basic-rate band (England, Wales, NI): £37,700 of taxable income in all three years. Personal allowance £12,570, tapered above £100,000. Scotland has its own income tax bands.
Business Asset Disposal Relief rate from 06-04-2026: 18%. Not normally relevant to crypto investors.

What counts as a disposal#

Event	Disposal?
Sell for GBP or other fiat	Yes
Swap one token for another	Yes
Pay for goods or services	Yes
Gift to a person other than spouse / civil partner	Yes, at GBP market value
Move between own wallets (beneficial ownership kept)	No
Lose private key	No. A negligible value claim may crystallise a loss if no prospect of recovery
Hard fork	New tokens get their own pool; original pool cost split on a just and reasonable basis (s52(4) TCGA)
DeFi loan or liquidity-pool deposit (to 05-04-2027)	Disposal if beneficial ownership passes; read the terms
Qualifying DeFi loan or liquidity-pool deposit (from 06-04-2027)	No gain, no loss

Computation#

Gain = GBP disposal proceeds − allowable cost (from the matching rules below) − allowable incidental costs. Records and the SA108 section must be in pounds sterling.

Trading: HMRC expects individuals to be trading in crypto "only in exceptional circumstances". If trading, income tax applies to profits and takes priority over CGT.

Income#

Activity	Treatment	Value
Mining (not a trade)	Miscellaneous income; expenses deductible	GBP value at receipt
Staking (not a trade)	Miscellaneous income; expenses deductible	GBP value at receipt
Mining / staking as a trade	Trade receipts (mining / staking trade test: activity, organisation, risk, commerciality)	—
Airdrop for nothing, not part of a trade	No income tax; CGT on later disposal	—
Airdrop for, or in expectation of, a service	Income tax (miscellaneous or trade)	—
Later disposal of rewarded tokens	CGT (mining, staking, airdrops)	—

Income tax rates on non-savings income (England, Wales, NI), all three years: 20% to £37,700, 40% to £125,140, 45% above, after the £12,570 personal allowance.

Dividends on shares and funds, for reference:

Tax year	Allowance	Basic	Higher	Additional
2024/25	£500	8.75%	33.75%	39.35%
2025/26	£500	8.75%	33.75%	39.35%
2026/27	£500	10.75%	35.75%	39.35%

Cost basis and record keeping#

Matching order (fungible tokens, same token type)#

Step	Rule	Statute
1	Same-day: all acquisitions and disposals of a token type on one day are treated as one acquisition and one disposal; matched first	s105 TCGA 1992
2	30-day: disposal matched with acquisitions in the next 30 days, earliest disposal first; acquisitions within the window matched first-in, first-out	s106A TCGA 1992
3	Section 104 pool: remaining tokens of the type form one pool; disposal takes a proportional share of pooled cost	s104(3)(ii) TCGA 1992

One pool per token type across all platforms and wallets.
NFTs are separately identifiable: not pooled, no matching rules.
The 30-day rule applies to gains and losses alike. It re-matches cost; it is not a loss deferral like the US wash-sale rule.
HMRC example: 100 tokens for £200 plus 300 for £300 = pool of 400 at £500 (£1.25 each). Sell 200 → cost £250.

Records#

Record per transaction (each pool)
Token type; date of disposal; number disposed of and number left; GBP value; bank statements; pooled cost before and after
Exchange reports are not tax calculations and do not track pooled cost; keep your own records

Retention	Rule
Return filed on time	At least 22 months after the end of the tax year
Return filed late	At least 15 months after filing
Self-employed / trading	At least 5 years after the 31 January submission deadline of the relevant tax year

Indirect taxes#

Item	Rule
Exchanging crypto for fiat (and back)	VAT exempt (Item 1, Group 5, Sch 9 VATA 1994)
Arranging qualifying token transactions	VAT exempt (Item 5, Group 5, Sch 9)
Mining rewards	Generally outside the scope of VAT
Goods / services paid in crypto	VAT on the goods / services at GBP value at the time; no VAT on the token
HMRC status of VAT treatment	"Provisional pending further developments"
VAT rates	Standard 20%, reduced 5%, zero 0%
VAT registration threshold	£90,000 taxable turnover in last 12 months
Shares	SDRT 0.5% (electronic); Stamp Duty 0.5% on paper transfers over £1,000; 1.5% into some depositary / clearance schemes

Reporting and deadlines#

Self Assessment#

Item	Rule
Register for SA (first-time)	By 5 October after tax year end
Paper return	31 October after tax year end
Online return and balancing payment	31 January after tax year end
Second payment on account	31 July
Real-time CGT service (if eligible)	Report by 31 December in the tax year after the sale
SA108 cryptoasset section	Boxes 13.1 number of disposals, 13.2 proceeds, 13.3 allowable costs, 13.4 gains, 13.5 losses, 13.6 claim code, 13.7 real-time-reported totals, 13.8 tax already paid (SA108 form). Applies from 2024/25
Before 2024/25	Crypto went in "Other property, assets and gains" (boxes 14–22)
When to fill in SA108 (2025/26 notes)	Disposals worth more than £50,000; or gains before losses over £3,000; or claiming a loss / making a claim or election; or earlier-year gains taxable now

Penalties#

Late filing	Amount
Initial	£100
After 3 months	£10/day, max £900
After 6 months	Greater of 5% of tax due or £300
After 12 months	Further greater of 5% or £300
Late payment	5% of unpaid tax at 30 days, 6 months and 12 months, plus interest

Cryptoasset Reporting Framework (CARF)#

Item	Rule
Who reports	UK-based reporting cryptoasset service providers (RCASPs): exchanges, brokers, dealers and others transacting for users
Whose data is reported	Users tax resident in the UK or in another CARF country
Collection starts	01-01-2026 (first reporting period 01-01-2026 to 31-12-2026)
First report	Between 01-01-2027 and 31-05-2027; then by 31 May each year
RCASP registration and user notice	By 31-01-2027
Provider penalty	Up to £300 per user (non-reporting, late, inaccurate, unverified)
User obligation	Give each provider: full name, date of birth, address and country of residence, tax identification number (if eligible)
User penalty	Up to £300 for inaccurate or missing details to a UK provider; may be higher for non-UK providers

Recent and upcoming changes#

Date	Change	Status
06-04-2024	Annual exempt amount £6,000 → £3,000	In force
30-10-2024	CGT main rates 10% / 20% → 18% / 24%; trustees 20% → 24%	In force
2024/25 return	Separate cryptoasset section on SA108 (boxes 13.1–13.8)	In force
26-11-2025	DeFi consultation outcome: "potential approach" of no gain, no loss; PoS validation staking out of scope	Superseded by the July 2026 paper
01-01-2026	CARF data collection by UK providers starts	In force
06-04-2026	Dividend basic and higher rates +2 points (10.75% / 35.75%)	In force
13-07-2026	Policy paper: no gain, no loss for qualifying cryptoasset loans and liquidity pools (individuals and trustees). Borrowed tokens acquired at market value; collateral disregarded; quantity differences on AMM exit create a gain or loss	Announced; effect from 06-04-2027
31-01-2027	RCASP registration and user notification deadline	Upcoming
01-01-2027 to 31-05-2027	First CARF report (calendar 2026 data)	Upcoming

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