Donating cryptocurrency to a UK charity can reduce your tax bill. No CGT is due on the donation, and the charity doesn’t pay tax on the gift.
Tax Treatment of Crypto Donations
| Event | Tax |
|---|---|
| Donate crypto to UK charity | No CGT |
| Charity receives crypto | No tax |
| Charity sells the crypto | No tax (charity is exempt) |
| Donate crypto to non-charity | CGT applies |
The CGT Relief
When you donate crypto to a registered UK charity:
| Without Donation | With Donation |
|---|---|
| Sell crypto: £10K gain → £1K-£2K CGT | Donate crypto: £10K gain → £0 CGT |
| Cash donated: £8K-£9K to charity | £10K to charity |
You avoid CGT on the gain AND the charity gets the full value.
Gift Aid on Crypto
| Scenario | Gift Aid Applies? |
|---|---|
| Donate crypto directly | No (Gift Aid is for cash only) |
| Sell crypto, donate cash | Yes |
| Charity sells crypto and claims Gift Aid | No |
Gift Aid only applies to cash donations. Crypto donations don’t qualify.
Higher Rate Tax Relief
If you donate cash from crypto profits:
| Tax Band | Effective Cost of £100 Donation |
|---|---|
| Basic rate (20%) | £80 |
| Higher rate (40%) | £60 |
| Additional rate (45%) | £55 |
The tax relief comes through your self assessment return, not at the point of donation.
What Qualifies as a Charity
| Qualifies | Doesn’t Qualify |
|---|---|
| Registered UK charity (charity number) | Unregistered organisations |
| Community amateur sports clubs (CASC) | Political parties |
| HMRC-recognised charities | Non-UK charities (different rules) |
Always check the charity number on the UK Charity Register.
How to Donate Crypto
| Method | Tax Treatment |
|---|---|
| Direct transfer from your wallet | CGT relief applies |
| Via a charity’s donation page | CGT relief applies |
| Via a crypto donation platform | CGT relief applies (check platform) |
| Sell crypto and donate cash | CGT on sale, Gift Aid on cash |
Direct crypto donation is most tax-efficient.
Record Keeping
| Record | Why |
|---|---|
| Charity name and registration number | HMRC may ask |
| Crypto donated (type and amount) | Value of donation |
| Transaction hash | Proof of transfer |
| Market value at donation | CGT relief calculation |
| Acknowledgment from charity | Evidence |
Bottom Line
Donating crypto to a UK charity avoids CGT on the gain. The charity receives the full value and pays no tax. Gift Aid doesn’t apply to crypto donations — only cash. For maximum tax efficiency, donate crypto directly (don’t sell first). Check the charity is registered. Keep records of the donation. Higher rate taxpayers donating cash from crypto profits get additional tax relief through self assessment.
Weighing the practical options
The decision to donate crypto is as much about how you give as about tax, and the two routes differ meaningfully. Giving the crypto directly is the most tax-efficient because you avoid CGT on the gain entirely, the charity receives the full market value, and the disposal qualifies for charity relief. Selling first and donating the cash is what most charities are set up to administer — it allows Gift Aid on the cash — but it crystallises CGT on the sale and reduces what the charity ultimately receives.
For most higher-rate taxpayers with significant gains, the direct donation is clearly better on purely financial terms, because the CGT you avoid can easily exceed the Gift Aid uplift you would gain from a cash gift. That said, don’t let tax be the only driver. Some charities prefer cash for administrative simplicity and can claim Gift Aid on it, which may be worth more to them than receiving an unclaimed crypto asset. It is worth asking the charity what they actually prefer before you transfer.
Timing also matters. The market value on the day of the donation fixes your relief, so making the gift on a day when the price happens to be elevated has no tax benefit — you get relief on the value transferred regardless. What genuinely matters is that the charity you choose is registered and that you hold the right records, because HMRC may ask to see them.
What to avoid
The mistakes here are usually avoidable with a little care. Donating to an unregistered organisation or one outside the UK means the CGT relief simply does not apply, and you could be left with a tax bill on a gift you were told was free. Assuming Gift Aid applies to a crypto donation is another common error — it never does, because Gift Aid is a cash mechanism. And selling the crypto first “to be safe” needlessly creates a CGT liability that a direct donation avoids.
Keep your records in order from the start rather than reconstructing them later. Record the charity number, the type and quantity of crypto, the market value on the day, and the transaction hash. This is easy to do at the point of donation and nearly impossible to assemble accurately months afterwards. If you are a higher or additional rate taxpayer, remember the extra relief on cash gifts comes through your self assessment return, so you must actually claim it there — it is not automatic.
Common questions
Can I donate crypto to a non-UK charity and still get relief? Generally not under the standard UK rules. The CGT charity relief is designed for UK-registered charities and recognised bodies, so donations to most overseas organisations are treated differently and may be a taxable disposal. Confirm the charity’s status before giving.
Is it better to donate the crypto or sell and give cash? For tax efficiency, donating the crypto directly is better because it avoids Capital Gains Tax on the gain, and the charity receives the full value. Selling and giving cash is the main route to Gift Aid but triggers CGT. The “best” option depends on which outcome the charity prefers and your own tax position.
Do I need to report the donation on my tax return? Yes, in many cases. Even though charity donations attract CGT relief, they are still a disposal and should be reflected in your Capital Gains Tax reporting, and you claim the relevant reliefs through your return. A tax adviser can confirm exactly what applies to your situation.
What if I want to donate on behalf of a deceased person’s estate? Donations from an estate can be treated differently, and there may be inheritance tax considerations alongside any CGT position. This is a case where professional advice is strongly recommended rather than relying on the standard individual rules.