The UK’s HMRC treats crypto as property (like stocks). Every disposal is a taxable event. The UK has the most detailed and accessible crypto tax guidance of any major economy.
What Is Taxable in the UK
| Event | Taxable? | Type |
|---|---|---|
| Sell crypto for GBP | Yes | Capital gain/loss |
| Trade one crypto for another | Yes | Capital gain/loss |
| Spend crypto on goods/services | Yes | Capital gain/loss |
| Gift crypto to spouse | No | Transfers between spouses are tax-free |
| Gift crypto to others | Sometimes | May be income tax (if from business) or CGT |
| Receive mining rewards | Yes | Income tax (at receipt value) |
| Receive staking rewards | Yes | Income tax (at receipt value) |
| Receive airdrops | Usually | Income tax if from employment/marketing |
| Donate to charity | No | No CGT, may claim income tax relief |
Tax Rates
Capital Gains Tax
| Tax Band | Rate |
|---|---|
| Basic rate (£12,571-£50,270) | 10% on crypto gains |
| Higher rate (over £50,270) | 20% on crypto gains |
| Annual exemption | £3,000 (below this = no CGT) |
Income Tax
| Tax Band | Rate |
|---|---|
| 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% |
Key UK Crypto Tax Rules
Same-Day Rule
If you sell crypto and buy the same crypto back on the same day, HMRC matches those shares first for cost-basis purposes. This stops you from manipulating your gains within a single day.
Bed and Breakfasting Rule (30-Day Rule)
If you sell crypto and buy the same crypto back within 30 days, HMRC treats it as if the sale didn’t happen. This prevents “washing” — selling a losing position to realise a loss, then buying it straight back to keep the position.
Section 104 Pool
All holdings of the same crypto are pooled together into a single “Section 104 pool” for cost-basis calculation. This means you can’t pick which coins you’re selling.
Allowable Costs
You can deduct:
- Purchase price
- Transaction fees (exchange fees, network fees)
- Mining equipment costs (if mining as a business)
Record-Keeping Requirements
HMRC requires:
- Date of each transaction
- Value in GBP at time of transaction
- Purpose of the transaction
- Counterparty details (exchange, wallet)
- Evidence of cost basis
How to File
- Self-assessment tax return — Must be filed if crypto gains exceed £3,000 or total crypto disposals exceed £50,000
- Use crypto tax software — Koinly, CoinTracker, Recap all support UK rules
- Report in the “Capital Gains” section — Crypto goes under “Other property, assets and gains”
- Deadline — January 31 following the tax year (April 6 - April 5)
Verdict
The UK has one of the most clearly defined crypto tax regimes in the world. The annual £3,000 CGT exemption means small investors may pay no tax. Higher earners pay 10-20% on gains. Use crypto tax software to calculate your gains accurately.
Related: Crypto Tax Guide for Beginners | Crypto Tax Calculator Guide | How Tax Authorities Track Crypto