The UK tax year runs from 6 April to 5 April. If you sold, swapped, or spent crypto in the 2025-26 tax year (6 April 2025 to 5 April 2026), you may owe Capital Gains Tax (CGT). This guide covers the allowances, the rates, worked examples, and the reporting rules that catch most people out.
What Counts as a Disposal
CGT is triggered whenever you dispose of crypto — you don’t have to sell for pounds. Disposals include:
- Selling crypto for fiat
- Trading one crypto for another (BTC → ETH is a disposal of the BTC)
- Spending crypto on goods or services
- Gifting crypto (except to your spouse or civil partner)
Buying and holding is not a taxable event. Neither is moving crypto between your own wallets.
Capital Gains Tax Allowance
| Tax Year | CGT Allowance |
|---|---|
| 2025-26 | £3,000 |
| 2024-25 | £3,000 |
| 2023-24 | £6,000 |
| 2022-23 | £12,300 |
The allowance halved from £12,300 to £6,000 in 2023-24, then halved again to £3,000 in 2024-25, and has stayed at £3,000 for 2025-26. The allowance is per person, so a couple can use £6,000 combined — worth remembering if you’re planning to cash out together.
CGT Rates
| Income Band | Basic Rate | Higher Rate |
|---|---|---|
| 2025-26 | 10% | 20% |
| 2024-25 | 10% | 20% |
Basic rate (10%) applies if your taxable income — including gains — stays below £50,270; higher rate (20%) applies above that. Since gains are counted on top of your income, a large gain can push part of itself into the 20% band.
Worked Example 1: Selling With Fees
You bought 0.5 BTC in 2024 for £18,000 (including exchange fees) and sold it in August 2025 for £30,000, paying £30 in sale fees.
| Scenario | Amount |
|---|---|
| Sale proceeds | £30,000 |
| Less: sale fees | £30 |
| Less: cost (including original fees) | £18,000 |
| Chargeable gain | £11,970 |
| Less: CGT allowance | £3,000 |
| Taxable gain | £8,970 |
| Tax at basic rate (10%) | £897 |
| Tax at higher rate (20%) | £1,794 |
Worked Example 2: Partial Sales and Pooling
You can’t simply match a buy to a sale. HMRC pools your holdings of the same asset into one cost figure (section 104 pooling), with same-day and 30-day rules for recent buys.
You buy 1 BTC for £15,000 (2023), then 0.5 BTC for £12,000 (2024). Pooled cost: £27,000 for 1.5 BTC = £18,000 per BTC. In 2025 you sell 0.6 BTC for £24,000:
- Cost of the 0.6 BTC: 0.6 × £18,000 = £10,800
- Gain: £24,000 − £10,800 = £13,200
- Taxable after the £3,000 allowance: £10,200
Most tax software handles pooling automatically; doing it by hand across multiple exchanges is where errors creep in.
Income From Crypto
Not everything is CGT. Mining, staking, airdrops, and interest on crypto are taxable as income when you receive them — at their pound value at that time — and then taxed again as CGT when you later sell them.
| Income Type | Tax Band | Rate |
|---|---|---|
| Crypto income (mining, staking, airdrops) | Personal allowance (up to £12,570) | 0% |
| Basic rate (£12,571-£50,270) | 20% | |
| Higher rate (£50,271-£125,140) | 40% | |
| Additional rate (over £125,140) | 45% |
The £1,000 trading allowance. If your total crypto income (staking, airdrops, mining) for the year is under £1,000, you don’t need to report it. If it’s over, you can deduct your actual expenses or use the £1,000 allowance — but not both. Claiming the £1,000 allowance is simpler; claiming expenses usually saves more if you have real costs.
Losses
Losses offset gains in the same year, and unused losses carry forward against future gains. You must claim a loss within four years of the end of the tax year it arose in, or you lose it. One catch: buy back the same asset within 30 days (bed-and-breakfasting) and the disposal is matched to the repurchase instead.
Reporting Thresholds
| Situation | Must Report? |
|---|---|
| Crypto profit under £3,000 | No, unless total disposal proceeds > £50,000 |
| Crypto profit over £3,000 | Yes |
| Crypto income over £1,000 | Yes |
| Total disposals over £50,000 | Yes (even if gain under allowance) |
The £50,000 rule is the one people forget: you can owe nothing and still have a filing obligation because your turnover, not your gain, crossed the line.
How to Report
Report through HMRC’s Real Time Capital Gains Service if you only have capital gains; use Self Assessment if you also owe income tax (wages, staking, self-employment).
Self Assessment Key Dates
| Event | Date |
|---|---|
| Tax year ends | 5 April 2026 |
| Online return deadline | 31 January 2027 |
| Payment deadline | 31 January 2027 |
If your Self Assessment bill is over £1,000, HMRC may ask for payments on account in July and January, so expect a second charge.
Common Mistakes
- Forgetting crypto-to-crypto swaps are disposals.
- Ignoring the £50,000 disposal-proceeds reporting rule.
- Using the wrong cost basis — fees count, and pooling must be applied.
- Missing the deadline — late filing penalties start at £100 and grow.
Bottom Line
For 2025-26, the CGT allowance is £3,000 and basic rate CGT is 10%. Crypto income under £1,000 doesn’t need reporting. File by 31 January 2027 for the 2025-26 tax year. Keep records of all transactions — dates, values in pounds, fees, and wallet addresses.
What matters most for 2025-26
The allowances for this tax year are the single most important figures to hold onto. Your CGT annual exempt amount is £3,000, your basic-rate CGT is 10% up to the £50,270 income-and-gains threshold, and crypto income under £1,000 does not need to be reported. Two rules trip up more filers than any other. The first is that crypto-to-crypto swaps and spending are disposals, so you can owe tax without ever converting to pounds. The second is the £50,000 disposal-proceeds reporting line: you can owe no tax at all and still be legally required to file because your turnover crossed the threshold. Keep a transaction log with dates, pound values, and fees, and you will have everything your report needs at the end of the year.
Common questions
Q: What rate is my gain taxed at? A: Basic-rate taxpayers pay 10% on gains and higher-rate taxpayers 20% for 2025-26. Your gains are added on top of your income, so a large gain can push part of itself from the basic into the higher band.
Q: How do I offset losses? A: Losses offset gains in the same year and any unused losses carry forward against future gains. You must claim a loss within four years of the end of the tax year in which it arose, or it is lost. The 30-day bed-and-breakfast rule can block the matching if you buy back within that window.
Q: Do fees reduce my gain? A: Yes. Purchase fees are added to your cost and sale fees are deducted from your proceeds. Ignoring fees and failing to apply HMRC’s section 104 pooling are among the most common errors when calculating gains by hand.
Q: Do I need to report staking, mining, and airdrops? A: These are income at receipt, valued in pounds on the day you receive them, and then taxed again as capital gains when you sell. If your total crypto income for the year is under £1,000 you do not need to report it; above that, deduct actual expenses or claim the £1,000 allowance — not both.
Staying on the right side of the deadline
Reporting correctly is only half the job — the other half is doing it on time. For the 2025-26 tax year the cross-easter formalities are fixed: the year ends on 5 April 2026, and your online Self Assessment return and payment are both due on 31 January 2027. If your bill exceeds £1,000, expect HMRC to ask for payments on account the following July and January, so a second charge is normal. If you have only capital gains and nothing else, you may use the Real Time Capital Gains Service; combine gains with income tax obligations such as wages or staking, and Self Assessment is the route. The late-filing penalty starts at £100 and grows, so it is cheaper by far to claim the allowance, apply the £50,000 rule correctly, and file before the deadline.