UK Crypto Tax Guide

Crypto tax in the UK,
explained by a specialist.

HMRC treats crypto as property, not currency. That means Capital Gains Tax when you dispose of it and Income Tax when you earn it. With the Crypto-Asset Reporting Framework sharing exchange data from 2026, getting this right matters more than ever. This is the complete UK map, with a specialist guide for every part of it.

The basics

How crypto is taxed in the UK

Two taxes apply. Capital Gains Tax on disposals, calculated under HMRC Share Pooling with the same-day and 30-day rules. Income Tax on crypto you earn. Almost every question below comes down to which one applies.

Capital Gains Tax on crypto

Rates, the annual allowance, Share Pooling and the 30-day rule, with worked examples.

Staking rewards

Taxed as income at receipt, then capital gains on disposal. How to report both.

Mining income

Hobby versus business, allowable costs, and how HMRC treats mined coins.

Airdrops

Income at receipt or capital gains only, depending on why you received them.

Getting paid in crypto

Salary or freelance income in crypto, taxed at receipt then again on disposal.

Moving between wallets

Not a taxable event, but it destroys your cost basis if the transfer is unmatched.

DeFi & complex activity

Where HMRC rules get complicated

This is where crypto tax software fails and where a specialist earns their fee. Each of these has its own HMRC treatment.

DeFi tax

Lending, staking, liquidity and yield, and the line between income and gains.

Liquidity pools

Entering and exiting a pool can each be a disposal. LP tokens and rewards.

Lending & interest

CeFi and DeFi lending, when the loan itself triggers a taxable disposal.

Margin & futures

When derivatives are capital gains, when income, and why reports get it wrong.

Wrapping & bridging

Whether wrapping or bridging is a disposal, and how to stay on the safe side.

NFTs

Capital Gains for holders, Income Tax for creators and traders.

HMRC is watching

Nudge letters, CARF and disclosure

HMRC already receives data from UK exchanges, and CARF widens it from 2026. If you have unreported gains, coming forward first almost always costs less.

HMRC nudge letters

What the letter means, what not to do, and how to respond before the deadline.

CARF explained

The reporting framework that shares your exchange data with HMRC from 2026.

Does Coinbase report?

What UK exchanges share with HMRC, and what it means for you.

Voluntary disclosure

How to disclose unpaid crypto tax to HMRC and what to expect on penalties.

Penalties

What late filing, late payment and undeclared gains actually cost.

Deadlines 2026

Registration, the 31 January deadline, and what happens if you miss it.

Pay less, legally

Reliefs HMRC actually allows

Not avoidance. These are the legitimate reliefs and allowances most crypto holders never claim.

Reduce your crypto tax

Allowance, loss harvesting, spouse transfers, pensions and timing.

Loss harvesting

Cut gains with realised losses, without falling foul of the 30-day rule.

Gifting crypto

When a gift is a disposal, and the spouse exemption that is not.

Inheritance tax

How crypto sits in your estate at 40 percent, and the planning that helps.

Moving abroad

Temporary non-residence and the five-year rule that pulls gains back.

Donating to charity

CGT-free disposals and the Income Tax relief on crypto donations.

Rather have a specialist handle all of it? See our crypto tax accountants, the full crypto tax service, or start with crypto reconciliation if your Koinly numbers look wrong.

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