UK Crypto Tax Guide

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 los

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 re

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

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 (each partner has the

Not financial advice. This calculator is for general information and education only. Figures are estimates and may not reflect your circumstances. For decisions, consult the FCA register and a qualified financial adviser. See our editorial standards.

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