UK crypto tax guide: Prepare your portfolio for 2024–25

The UK government is rolling out a more comprehensive framework for digital assets than ever before. Recent developments include proposed regulations under the  Financial Services and Markets Act 2000 and a consultation paper by the Bank of England on stablecoins.

Around 12% of UK adults held some form of crypto in 2024, according to consumer research by the Financial Conduct Authority (FCA)—up from about 4% in 2021. If you’re one of the UK’s millions of crypto investors, it’s essential to understand that His Majesty’s Revenue and Customs (HMRC) doesn’t view these assets as currencies. Instead, tax authorities in the UK consider most cryptoassets to be chargeable assets, which means they may be subject to capital gains tax (CGT) or income tax, depending on how you use them.

Our UK crypto tax guide explains how to calculate your obligations and comply with HMRC crypto guidelines. We’ll also explore tax rates, taxable transactions, and key deadlines.

Is crypto taxable in the UK?

Yes. Whenever you dispose of digital assets or receive them as payment or reward, you may trigger a tax liability. Broadly:

• Disposals of crypto (selling, swapping, spending, gifting) are usually subject to CGT. 
• Earning crypto from activities such as staking, mining, yield farming, and certain airdrops is usually subject to income tax.

How much tax do you pay on crypto in the UK?

The tax you owe on cryptocurrency trading depends on what activities you’re involved in and your income bracket. 

For all crypto disposals (including spending digital assets on products or services), UK residents may need to pay the applicable CGT rate on any chargeable gains above the annual exempt amount (AEA). For the 2024–25 and 2025–26 tax years, the AEA is £3,000 for individuals.

UK crypto CGT rates for 2024–25

The CGT rates for gains on cryptossets in the 2024-25 tax year changed for disposals made on or after 30 October 2024:

​If you disposed of crypto on or after 30 October 2024, you’ll need to check whether these new rates require you to adjust your CGT calculations.

How is crypto income taxed in the UK?

If you earn crypto from activities such as mining and staking, the fair market value (FMV) of those coins in GBP is usually considered miscellaneous income and included in your taxable income. ​

How crypto income is taxed depends on your taxpayer status. Most individuals are entitled to a personal allowance of £12,570, and income above that amount is generally subject to income tax (with the allowance tapered once income exceeds £100,000).

UK income tax rates for crypto income (England, Wales, Northern Ireland)

Note that taxpayers in Scotland are subject to different income bands and rates.

When and where do you pay crypto taxes in the UK?

Investors and traders must include crypto capital gains and taxable crypto income on their Self Assessment tax return each year. 

• The UK tax year runs from 6 April to 5 April of the following calendar year.
• The deadline to file and pay taxes online is 31 January following the end of the tax year. 
• For the 2024-25 tax year (6 April 2024 to 5 April 2025), the online filing and payment deadline is 31 January 2026.

Who collects crypto taxes in the UK?

HMRC is responsible for collecting UK taxes, including CGT and income tax on cryptoassets.

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How are crypto gains taxed in the UK?

Whenever you dispose of cryptocurrency, you may have to pay CGT on any chargeable gain you make, after taking account of the annual exempt amount and any allowable losses. A disposal includes selling, swapping, spending, and gifting crypto.

What’s the formula to calculate capital gains?

CGT applies only to the gain, not the full amount of each disposal. HMRC taxes the profit after excluding your initial investment and adding certain allowable costs (such as transaction fees and transfer fees).

The formula is:​

Capital gains = proceeds – (cost basis + allowable costs)

Proceeds: The crypto’s total GBP value at the time of disposal.

Cost basis: Typically, the original purchase price in GBP plus allowable acquisition costs.

If you received the crypto as income, your cost basis is the FMV in GBP at the time of receipt.

Suppose you buy 0.5 Bitcoin (BTC) for £40,000 and later sell it for £51,000. Assume that the fee to purchase this BTC on an exchange was £20, and the cost to sell it was £15. The taxable capital gains would be:

£10,965 = £51,000 – (£40,000 + £35)

Because the 2024–2025 crypto taxes AEA is £3,000, you’d pay CGT on the difference of £7,965, assuming this was your only chargeable capital gains transaction for the tax year.

Which cost basis methods can I use?

HMRC uses share matching rules to determine the cost basis for each disposal of fungible assets such as crypto. There are three rules, applied in this order:

• Same-day rule: You must match the digital assets you buy and sell on the same day before applying other cost basis rules.
• 30-day rule (bed and breakfasting rule): If the same-day rule doesn’t apply, you must match a disposal with any purchases of the same crypto asset made in the 30 days after that disposal, and use those purchases as the cost basis for that disposal.
• Section 104 holding (share pooling): Any remaining units not matched under the same-day or 30-day rule then go into a Section 104 pool, and their average cost per unit is used to calculate the basis for subsequent disposals.

Example of Section 104 pooling

You hold 1 BTC bought at £20,000 and 0.5 BTC bought at £25,000. Your Section 104 holding is:

Total cost = (1 × £20,000) + (0.5 × £25,000) = £20,000 + £12,500 = £32,500

Total units = 1.5 BTC

Average cost per BTC = £32,500 ÷ 1.5 = £21,666.67

This average cost is then used as the cost basis for future disposals from the pool.

Can I report crypto losses?

Yes. HMRC recognizes losses on chargeable assets, including cryptocurrency, when you dispose of them for less than their cost basis. These allowable capital losses can offset capital gains you made in the same year. 

If you don’t have any gains – or if your losses exceed your gains – you can carry the unused losses forward and apply them to future gains. You can claim losses within four years of the end of the tax year in which the loss arose.

What are the tax rules for stolen or lost crypto?

If you lose access to your private keys, and you can show HMRC proof that there’s no realistic chance of recovering access to your crypto, you can file a negligible value claim to treat those digital assets as a loss.

However, HMRC doesn’t treat theft and fraud events as a valid basis for a negligible value claim, so you won’t be able to claim a loss for stolen crypto.

Which crypto transactions are taxable as CGT in the UK?

Here are the main types of crypto transactions subject to CGT.

Selling crypto for fiat

Selling crypto for a fiat currency such as GBP is a disposal. To determine the yearly chargeable gains from these disposals, you’ll subtract your cost basis from the proceeds in GBP.

Swapping crypto with other currencies

UK tax rules for crypto-to-crypto exchanges, such as swapping BTC for ETH, are the same as those for selling for fiat. You’ll use the GBP value of the crypto you give up at the time of the swap to calculate gain or loss.

Spending crypto on goods or services

Every time you spend crypto, it counts as a disposal. The GBP value at the time you spend it is treated as disposal proceeds and used to calculate gain or loss.

Gifting crypto

Gifting crypto is also a disposal for CGT purposes – the crypto’s value at the time of the gift is treated as the disposal proceeds. Exceptions are crypto sent to a spouse, civil partner, or charity.

Which crypto activities generate taxable income?

Unlike disposals, crypto income arises when you receive digital assets into either a custodial or self-custodial account. Common income-generating activities include:​

• Staking rewards: Any staking rewards (e.g., Ethereum (ETH) staking) are taxable as income at their GBP FMV when received.
• Mining: Crypto rewards from mining are treated as income and may be taxed as miscellaneous income or trading income, depending on the scale and nature of the activity. Self-employed miners may also be subject to National Insurance (NI) on crypto income.
• Airdrops: Certain airdrops can be taxable income if they are “provided in return for, or in expectation of, a service.”
• Decentralized finance (DeFi) protocols: Under the current guidance, returns from DeFi arrangements such as staking, lending, or liquidity pools are often taxed as income, but HMRC considers the specific terms of each protocol to decide whether a return is income or a chargeable gain. HRMC is also considering a no gain/no loss (NGNL) framework for cryptoasset loans and liquidity pools. For the latest position, refer to HMRC’s official consultation outcome on DeFi, and consider working with a tax professional in more complex cases.
• Income: If an employee receives wages in crypto, those digital assets are treated as regular wages for tax purposes and are subject to income tax.

How is crypto income valued?

The income you must report is the asset’s value in GBP at the time you receive it.

Example 

If ETH is trading at £2,500 when you receive a 0.01 ETH staking reward:

Income to report = £2,500 × 0.01 = £25

You would add £25 to your other income for that tax year.

Which crypto transactions are not taxable?

Not every crypto-related activity triggers taxation. Common non-taxable scenarios include:

Buying crypto with GBP

There’s no tax on purchasing crypto with GBP, although any fees associated with this type of transaction may be allowable expenses that increase the cost basis.

Transferring crypto between your own wallets

You won't be taxed when you move crypto between your private wallets or when you move it off an exchange account. 

However, HMRC treats any gas or network fees you pay in tokens as separate disposals of those tokens, which can give rise to small gains or losses (and may also be treated as allowable costs of the main transaction).

Holding crypto (HODLing)

Simply HODLing crypto in an exchange account, a software wallet, or cold storage is not a taxable event. Tax only arises when you dispose of or earn the asset.

Donating crypto

There’s no tax implication when you send digital assets to a UK-registered charitable organization. HMRC also doesn’t impose taxes if you send crypto to your spouse or civil partner’s wallet address.

How do I report my crypto taxes in the UK?

Capital gains on digital assets, including crypto, go on your Self Assessment tax return. You report them via the capital gains summary (SA108), showing your total proceeds, allowable costs, and gains and/or losses in GBP.​

For crypto income, you may have to use the SA100 main form or the SA101 Additional information pages, depending on how you received the digital assets. If you’re paid in crypto by an employer, it’s treated as normal wages and reported in the employment section of the SA100, just like a cash salary. However, if you earn crypto from activities like staking, it’s usually reported as other taxable income on SA101.

How do I file my tax return?

HMRC offers an online portal where you can register for a Unique Taxpayer Reference (UTR) number and file your Self Assessment tax return electronically. If you prefer to file paper returns, you can download forms from HMRC’s website or call HMRC to request documents by post, bearing in mind that paper returns have an earlier filing deadline than online returns.

You can also use commercial tax software designed for UK residents to streamline the process. For crypto transactions, a tool like CoinTracker can connect to your exchanges and wallets, track your digital asset activity, and generate HMRC-ready CGT and income reports.

When is the crypto tax due date?

For the 2024–25 tax year, you’ll need to compile all relevant crypto transactions from 6 April 2024 to 5 April 2025.

Self Assessment tax return deadlines for 2024-25 are:

• Paper returns: due by 31 October 2025
• Online returns: due by 31 January 2026

Crypto taxes: Simple and secure with CoinTracker

Anyone who earns, spends, or sells crypto in the UK should keep detailed records of their transactions and report all activity to HMRC every year. The simplest way to stay compliant with UK tax regulations is to use CoinTracker’s Portfolio Tracker to link all of your exchange APIs and public wallet addresses.

After connecting your accounts, CoinTracker reveals your entire crypto transaction history, calculates cost basis, and identifies activities such as transfers, disposals, and income. Plus, it helps you generate tax forms in line with current HMRC guidelines.

Tax time is approaching – are you prepared? Let us simplify your crypto tax journey. Create a free CoinTracker account and let our platform handle the complexities.

Disclaimer: This post is informational only and is not intended as tax advice. For tax advice, please consult a tax professional.