Selling Crypto for Fiat
CGTConverting BTC to GBP, USD, or EUR triggers Capital Gains Tax on any profit.
Taxable Event
HMRC Updated 2024/25
UK Crypto Tax Guide 2025
Everything UK investors need to know about HMRC rules, Capital Gains Tax rates, allowances, and reporting deadlines. Complete guide with form instructions.
TrustCrypto Institute
Research & Standards
HMRC Verified
Updated 28 Nov 2025Last fact-checked: 28 Nov 2025Quick Answer
Capital gains from selling, trading, or spending crypto are taxed at 18% or 24% on profits above the annual CGT allowance. Income from mining or staking is taxed at 20%, 40%, or 45% depending on your income band. Deadline: 31 January 2026 for online self-assessment.
At a Glance: 2024/2025 Tax Year
CGT Allowance
£3,000
Reduced from £6,000
CGT Rates (from 30 Oct)
18% / 24%
Basic / Higher rate taxpayers
Filing Deadline
31 Jan 2026
Online self-assessment
Capital Gains Tax Explained
Capital Gains Tax applies to profits made when selling or disposing of assets that have increased in value. You only pay CGT when you "dispose" of your crypto.
What Counts as a Disposal?
Selling for Fiat
Converting BTC to GBP, USD, or EUR
Crypto-to-Crypto Trades
Swapping BTC for ETH (taxable event!)
Spending on Goods/Services
Buying a car or coffee with Bitcoin
Gifting (Non-Spouse)
Giving crypto to anyone except spouse/partner
CGT Calculation Example
Annual Income£60,000
Crypto Gains£10,000
Less: Tax-Free Allowance- £3,000
Taxable Gain£7,000
CGT Due (Higher rate: 24%)£1,680
You don't pay tax for simply holding cryptocurrency, no matter how much the value increases. Tax is only due when you realize the gain through a disposal.
Get a 1-to-1 UK Crypto Tax Review
Speak with a vetted UK crypto tax advisor about your trades, HMRC reporting, and how to align your tax strategy with your long-term portfolio plan.
Income Tax on Crypto
If you receive crypto as income (not through buying it), you must report the Fair Market Value (FMV) in GBP at the time of receipt as taxable income.
| Activity | Tax Type | Details |
|---|---|---|
| Mining Rewards | Income Tax | Value at time of receipt. Misc. income unless a business. |
| Staking Rewards | Income Tax | Value when received counts as income. |
| Airdrops (for service) | Income Tax | Only if received in return for action/service. |
| Employment Salary | Income Tax + NIC | Subject to National Insurance contributions. |
| Freelance Payment | Income Tax | Report value in GBP when received. |
Income Tax Example
You're a freelancer with £30,000 annual income. You received £5,000 worth of Bitcoin for a project.
Base Income£30,000
Bitcoin Payment+ £5,000
Total Income£35,000
Tax on Bitcoin (20% basic rate)£1,000
UK Cost Basis Methods
HMRC mandates specific cost basis methods that must be applied in order. You cannot choose FIFO or LIFO.
The 3 Required Methods (in order)
STEP 1
Same-Day Rule
If you buy and sell the same crypto on the same day, match them together using that day's purchase price.
Buy 2 BTC @ £20,000 (10:00)
Sell 2 BTC @ £21,000 (16:00)
→ Cost basis: £40,000 (same day)
STEP 2
Bed & Breakfasting (30-Day Rule)
If you sell crypto and buy the same type within 30 days, match the sale with the repurchase.
Day 1: Sell 5 ETH @ £1,500
Day 20: Buy 5 ETH @ £1,400
→ Cost basis: £7,000 (30-day repurchase)
STEP 3
Section 104 Rule (Pooling)
All remaining purchases of the same crypto are pooled together with an average cost basis.
Date
Action
Pool Total
Avg Cost
Jan 5
Buy 10 BTC
£200k
£20k/BTC
Feb 10
Buy 5 BTC
£300k
£20k/BTC
Mar 1
Sell 8 BTC
£140k
£20k/BTC
Cost basis for 8 BTC: 8 × £20,000 = £160,000
Average Cost = Total £ Spent ÷ Total Units Held
2024/2025 Tax Rates & Allowances
Capital Gains Tax
Basic Rate Taxpayer18%
Higher/Additional Rate24%
Annual Exempt Amount£3,000
Rates effective from 30 October 2024
Income Tax Bands
Basic Rate20%
Higher Rate40%
Additional Rate45%
Personal Allowance£12,570
Subject to tapering for incomes above £100,000
Key Deadlines & Penalties
Missing HMRC deadlines for self-assessment can quickly become expensive. Here are the key dates and penalties you need to know for crypto taxes.
Filing Deadline
31 Jan 2026
Online self-assessment for 2024/2025 tax year
Paper Return
31 Oct 2025
If filing a paper tax return
Payment Deadline
31 Jan 2026
Any tax due must be paid by this date
How to Report: Tax Forms Guide
You'll need to complete two HMRC forms to report your crypto activity: SA100 (main return) and SA108 (capital gains summary).
1Form SA100
Main Self Assessment Return
On the SA100 form, you must indicate that you have capital gains or crypto income to report.
7Question 7 (Page TR 2)
Check "Yes" for Capital Gains Tax summary if you disposed of any crypto.
17Boxes 17-21 (Page TR 3)
Report crypto income (mining, staking, etc.).
- Box 17: Gross income from crypto
- Box 18: Allowable expenses
If you check "Yes" to Question 7, you MUST complete and attach form SA108.
7
Capital Gains Tax summary
If you sold or disposed of any assets (for example, stocks, shares, land and property, a business), or had any chargeable gains, read the notes to decide if you have to fill in the 'Capital Gains Tax summary' page.
If you do, you must also provide separate computations.
Yes
No
Computation(s) provided
🆕 Cryptoassets (New in 2025)
Please read the notes before filling in this section.
Number of disposals
13.1
32
Disposal proceeds
13.2
£45,200
Allowable costs
13.3
£38,900
Gains before losses
13.4
£6,300
Other property, assets and gains
Number of disposals
14
Disposal proceeds
15
Use the Cryptoassets section (13.1-13.8) for crypto transactions.
2Form SA108
Capital Gains Tax Summary
The SA108 form is where you provide detailed calculations of your crypto gains and losses.
Cryptoassets Section (Boxes 13.1-13.8)
Box 13.1Number of disposals
Box 13.2Total proceeds (£)
Box 13.3Allowable costs (£)
Box 13.4Gains before losses (£)
Box 13.5Losses in year (£)
The 2025 forms include a dedicated cryptoassets section for the first time!
Complete Example: Sarah's Crypto Taxes
Income (SA100)
Mining rewards£6,500
Staking rewards£2,800
Less: Expenses-£2,100
Net Income£7,200
Tax @ 40%£2,880
Capital Gains (SA108)
32 disposals£45,200
Less: Costs-£38,900
Total gains£6,300
Less: Allowance-£3,000
Taxable Gain£3,300
CGT @ 24%£792
Total Tax Due£3,672
Taxation of Specific Transactions
Different crypto activities have different tax treatments. Here's a comprehensive breakdown:
Crypto-to-Crypto Trades
CGTSwapping BTC for ETH (or any crypto for another) is a disposal event subject to CGT.
⚠ Many investors miss this: trading crypto-to-crypto is taxable!
Mining Crypto
Income TaxThen CGTIncome Tax at receipt (on GBP value), then CGT when later disposed.
At receipt
Income Tax on FMV
When sold
CGT on gains
Staking Rewards
Income TaxGenerally treated as income at time of receipt. Value in GBP when received is taxable.
Airdrops
Tax-Free*Generally tax-free at receipt unless received for services (then Income Tax).
*CGT applies when you later sell the airdropped tokens.
Gifting Crypto
Usually CGTTreated as disposal at market value. Exception: transfers to spouse/civil partner are tax-free.
To spouse: Tax-free
To others: Taxable
Legal Ways to Optimise Your Crypto Taxes
Smart strategies to minimise your tax liability while staying compliant with HMRC rules.
Tax Loss Harvesting
Sell underperforming crypto at a loss to offset gains and reduce taxable income.
You have £10k gains. Sell £3k in losses before 5 April. Net taxable: £7k instead of £10k.
Use Your Annual Allowance
Realise gains within the £3,000 tax-free allowance each year.
Don't let allowances go to waste. Consider taking £3k profits annually tax-free.
Strategic Timing
Sell assets in years with lower income to stay in lower tax brackets.
If expecting lower income next year, defer sales to pay 18% instead of 24% CGT.
Spousal Transfers
Transfer crypto to spouse/partner to use both £3k allowances and lower tax brackets.
Transfers between spouses are tax-free!
Professional Advice Recommended
Tax optimisation can be complex. Consider consulting a crypto tax specialist to ensure you're maximising benefits while remaining compliant with HMRC rules.
Common Questions
Frequently asked questions about UK crypto taxes answered by our tax experts.
Do I pay tax if I just hold crypto?
No. Simply holding cryptocurrency ("HODLing") is not a taxable event in the UK. You only pay tax when you dispose of crypto through selling, trading, spending, or gifting (except to spouse/civil partner). The unrealized gains while you hold are not taxed.
Is crypto-to-crypto trading taxable?
Yes. Trading one cryptocurrency for another (e.g., Bitcoin for Ethereum) is considered a disposal event and is subject to Capital Gains Tax on any profit made. HMRC treats this as disposing of one asset and acquiring another, which triggers a CGT calculation.
Can I offset crypto losses against gains?
Yes. You can offset capital losses from crypto against your capital gains in the same tax year. If your losses exceed your gains, you can carry forward unused losses to future tax years indefinitely. You must report losses to HMRC within 4 years of the end of the tax year in which they occurred.
What happens if I miss the tax deadline?
Missing the 31 January deadline results in automatic penalties: £100 immediately, then £10 per day after 3 months (up to £900), plus £300 or 5% of tax due after 6 months, and another £300 or 5% after 12 months. Interest is also charged on unpaid tax at approximately 6.5% annually.