How HMRC taxes cryptoassets: what counts as a disposal, the matching rules, a worked example, the £3,000 allowance and current rates, income from staking and mining, losses, reporting and records.
HMRC treats most cryptoassets held as personal investments as property for Capital Gains Tax (CGT). Tax can be due when you dispose of them, not only when you cash out to pounds. Swaps between tokens and spending crypto both count. This guide covers the main rules for individuals; it isn't tax advice, and crypto tax can be complicated.
What counts as a disposal?
- selling crypto for pounds or another currency;
- swapping one cryptoasset for another, including stablecoins;
- using crypto to pay for goods or services;
- giving crypto away, except to a spouse or civil partner you live with.
Moving coins between your own wallets isn't a disposal. Transaction fees paid in crypto can themselves be disposals.
Working out the gain
Gain = disposal value − allowable costs. Allowable costs include what you paid for the tokens and certain fees, such as exchange fees and transaction fees. For disposals of tokens bought at different times, HMRC applies three matching rules, in this order:
- Same-day rule: tokens disposed of are matched with tokens of the same type bought the same day.
- 30-day ("bed and breakfasting") rule: next, with tokens bought in the following 30 days.
- Section 104 pool: otherwise, with the average cost of your remaining holding of that token.
A worked example
You buy 1 token for £10,000 and later another for £20,000. Your pool is 2 tokens costing £30,000, an average of £15,000 each. You sell 1 token for £22,000 (with no same-day or 30-day purchases). Your gain is £22,000 − £15,000 = £7,000, less allowable fees.
Allowance and rates
The CGT annual exempt amount is £3,000. Gains above that are taxed at 18% where they fall within your basic-rate band, and 24% above it. Your taxable income determines how much of the basic-rate band is available.
In the example, £7,000 − £3,000 = £4,000 taxable. For a higher-rate taxpayer, that's £960 at 24%.
Losses
Losses can be set against gains in the same year, and unused losses carried forward, but you must report them to HMRC within four years of the end of the tax year in which they arose. If a token becomes worthless, you may be able to make a "negligible value" claim.
Income, not gains
Crypto received from mining, staking, airdrops in some cases, or as payment for work is generally treated as income, taxed at its pound value when you receive it. That value then becomes the cost for working out any later gain. Employers paying in crypto may need to operate PAYE.
Reporting
- Report gains through Self Assessment. The tax return includes a section for cryptoassets.
- You may need to report if your total disposals exceed £50,000 in a tax year, even if gains are below the allowance.
- If you're not in Self Assessment, you can use HMRC's real-time CGT service in some cases, or register.
- From 1 January 2026, UK crypto platforms have to collect user and transaction details under the international Cryptoasset Reporting Framework, and report them to HMRC, so assume HMRC will see your activity.
If you've underpaid in the past, HMRC offers a disclosure service for cryptoassets. Correcting voluntarily usually means lower penalties.
Records to keep
- the date of each transaction;
- the type and number of tokens;
- the value in pounds at the time;
- fees paid;
- wallet addresses and exchange records;
- running pool totals.
Exchanges close and data disappears, so export your history regularly. Crypto tax software can help calculate gains, but check its output.
Frequently asked questions
Is buying crypto taxable?
No. Tax arises on disposal, or when you receive crypto as income.
Do I pay tax on unrealised gains?
No, only on disposals.
Sources and further reading
Facts checked on 20 October 2026. Spotted an error? Tell us and we will correct it.