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.