Crypto Profit & Tax Calculator (UK)

UK Crypto Tax Guide

What do I need to know about HMRC Crypto Tax Treatment?

HMRC classifies cryptocurrency as a capital asset, not currency. Disposing of crypto (selling for £, exchanging for another crypto, using to buy goods, or gifting to a non-spouse) is a taxable disposal event subject to Capital Gains Tax. The gain = proceeds minus the acquisition cost (using HMRC's pooling rules — Section 104 pool). CGT rates from October 2024: 18% for basic rate taxpayers and 24% for higher/additional rate taxpayers. The annual CGT exempt amount is £3,000 for 2026/27. Crypto losses can be offset against crypto gains in the same or future tax years, so keeping accurate records of losing trades matters as much as gains.

What do I need to know about The 30-Day Same-Asset Rule?

HMRC has a specific anti-avoidance rule (the bed and breakfast rule): if you sell crypto and buy the same type within 30 days, the repurchase price is used as the cost of the sold coins, not the original purchase price. This prevents 'crystalising' a loss to reduce CGT while maintaining the same position. The 30-day rule applies to the same asset (Bitcoin sold and Bitcoin repurchased). Exchanging into a different cryptocurrency within 30 days is treated separately. Careful timing of sales and repurchases around this rule can significantly affect your reported gain or loss, so plan disposals with the 30-day window in mind rather than trading reactively.

What do I need to know about Record Keeping Requirements?

HMRC requires you to keep records of every crypto transaction: date of acquisition and disposal, amount in GBP at time of transaction (the sterling value on the day of the transaction using a consistent exchange rate source), fees paid, and the resulting pooled cost of remaining holdings. With hundreds of transactions, dedicated crypto tax software (Koinly, CoinTracker, Recap) is essential — these integrate with major exchanges and wallets to import transaction history automatically. Failure to keep adequate records can leave you unable to prove your cost basis to HMRC, potentially resulting in the full disposal proceeds being treated as taxable gain.

What do I need to know about Minimising Your Crypto Tax Bill?

Legal strategies to reduce CGT liability: use the annual £3,000 exempt amount each year — if you have gains, crystallise enough to use the full allowance. Offset losses against gains — track losses even in years you do not need them; they carry forward indefinitely. Bed and SIPP/ISA strategy: you cannot hold crypto directly in an ISA or SIPP, but crypto-exposed ETFs and investment trusts can be held in these tax-sheltered wrappers. Transfer assets between spouses at no gain, since transfers between spouses are exempt from CGT — this effectively doubles the annual exempt amount available to a couple, as each partner has their own £3,000 allowance.