Crypto Tax UK FAQs 2026/27
How is crypto taxed in the UK?
HMRC treats cryptocurrency as a capital asset, not currency. Selling, swapping, spending or gifting crypto (other than to a spouse) triggers a disposal that may be subject to Capital Gains Tax. Your gain is the disposal proceeds minus the cost of the crypto using the Section 104 pool average cost method. Gains above the £3,000 annual exempt amount are taxed at 18% (basic rate) or 24% (higher rate) for 2026/27. Staking, mining rewards and airdrops are generally classed as income and taxed at your marginal income tax rate.
What is the 30-day bed-and-breakfasting rule for crypto?
The 30-day rule prevents you from selling crypto to crystallise a loss and immediately buying back. If you buy the same cryptocurrency within 30 days of selling, HMRC matches the sale against the new purchase (not the Section 104 pool). The matching order is: 1) same-day acquisitions, 2) acquisitions within 30 days following the sale, 3) the Section 104 pool. This rule applies to each individual coin or token type.
Do I need to report crypto losses to HMRC?
Yes, you should report capital losses from crypto to HMRC to benefit from them. Once reported, losses can be carried forward indefinitely and set against future capital gains. You have 4 years from the end of the tax year in which the loss arose to make a claim. Even if your gains are below the reporting threshold, it is worth reporting losses so HMRC has a record for future years. Losses on crypto held in wallets you no longer have access to can also be claimed if you can evidence the loss.
When do I need to file a Self Assessment for crypto?
You must register for and file Self Assessment if: your total capital gains (from all assets) exceed the £3,000 annual exempt amount, OR your total proceeds from all disposals exceed £50,000 in the tax year (even if you made a net loss). You must also report staking, mining or airdrop income through Self Assessment. The deadline for online Self Assessment filing is 31 January following the end of the tax year.
Is swapping one cryptocurrency for another a taxable event?
Yes. Swapping one cryptocurrency for another (for example, exchanging Bitcoin for Ethereum) is treated as a disposal by HMRC. You are deemed to have sold the first cryptocurrency at its market value on the day of the swap. Any gain above your allowable cost is subject to CGT. The market value of the crypto received becomes the cost basis for future disposals. This applies even if no GBP changes hands.
How are DeFi and NFT transactions taxed in the UK?
HMRC's guidance covers DeFi and NFTs on a case-by-case basis. Providing liquidity, receiving LP tokens, yield farming and staking may each have different tax treatments. NFT sales are generally subject to CGT. HMRC published a policy paper in 2022 on DeFi lending and staking, indicating that disposal treatment depends on whether the beneficial ownership of the underlying asset transfers. Keep detailed records of all transactions as HMRC expects full disclosure.
What CGT rates apply to crypto gains in 2026/27?
For non-property assets including cryptocurrency, the CGT rates following the October 2024 Budget are: 18% for gains falling within the basic rate income tax band (up to £50,270 combined income and gains) and 24% for gains above the higher rate threshold. The rate depends on your total income in the year: your salary and other income is assessed first, and gains are stacked on top. The £3,000 annual exempt amount applies before any tax is calculated.
For informational purposes only · Not financial advice · Tax rates shown are for 2026/27 · HMRC matching rules (same-day and 30-day) are not fully modelled · Always consult a qualified tax adviser for your personal situation