UK Crypto Capital Gains Tax: HMRC Rules for 2026
Updated June 8, 2026. UK crypto capital gains tax now runs on a different rate structure than many older guides still quote. For 2025/26 and 2026/27, most individual crypto gains above the annual exempt amount are taxed at 18% or 24%, not the old 10% and 20% rates.
If you’re a UK resident and you sell, swap, spend, or gift crypto, HMRC may treat that as a disposal for Capital Gains Tax. The hard part is not knowing that tax exists. The hard part is getting the numbers right after years of exchange accounts, wallets, NFTs, DeFi positions, and partial records.
This guide explains when crypto triggers CGT, how HMRC’s pooling rules work, which rates apply, what records you need, and when a UK crypto tax specialist can save you from a messy Self Assessment.
Quick answer: UK individuals generally pay Capital Gains Tax on crypto disposals after deducting allowable costs, capital losses, and the annual exempt amount. The annual exempt amount is £3,000 for 2025/26 and 2026/27. Individual CGT rates are 18% and 24% for most gains in those years. HMRC uses same-day, 30-day, and Section 104 pooling rules for many fungible token calculations.
When Crypto Triggers Capital Gains Tax in the UK
HMRC says individuals need to calculate a gain or loss when they dispose of tokens. A disposal includes selling crypto for money, exchanging one token for another, using tokens to pay for goods or services, and giving tokens away to someone other than a spouse or civil partner.
That means crypto-to-crypto trades count. Selling ETH for GBP is obvious. Swapping ETH for SOL can also be a disposal, even though no cash hits your bank account.
There is no disposal if you keep beneficial ownership throughout the transaction. A normal transfer between two wallets you control is usually not a taxable sale. But your records still need to prove it was a transfer, not a disposal.
HMRC source: CRYPTO22100, what is a disposal.
UK Crypto CGT Rates for 2025/26 and 2026/27
The old 10% and 20% individual CGT rates no longer apply to most crypto gains for the current tax years. GOV.UK lists the individual Capital Gains Tax rates as 18% and 24% for 2025/26 and from 6 April 2026 onwards, excluding carried interest rules.
| Tax year | Annual exempt amount | Individual CGT rates for most gains |
|---|---|---|
| 2024/25 | £3,000 | 10% and 20% before 30 October 2024, then 18% and 24% |
| 2025/26 | £3,000 | 18% and 24% |
| 2026/27 | £3,000 | 18% and 24% |
You only pay CGT on gains above the annual exempt amount after allowable losses and reliefs. Your taxable income still matters because it determines how much of the gain falls into the lower or higher CGT band.
HMRC source: Capital Gains Tax rates and allowances.
How HMRC Calculates Crypto Gains
The basic calculation is simple:
Disposal proceeds minus allowable costs equals gain or loss.
The real work is finding the right allowable cost. UK crypto tax does not usually let you pick the exact coin you want to sell. For many fungible tokens, HMRC applies matching and pooling rules.
Same-day rule
If you buy and sell the same token on the same day, same-day matching can apply before the Section 104 pool.
30-day rule
If you sell a token and reacquire the same type of token within the next 30 days, the later acquisition can be matched to the earlier disposal. This is the UK version of the bed and breakfasting rule. It can stop investors from selling and immediately rebuying only to manufacture a tax loss.
Section 104 pool
After same-day and 30-day matching, most remaining fungible token holdings sit in a Section 104 pool. Each token type gets its own pool. BTC, ETH, and SOL are separate pools with separate pooled allowable costs.
NFTs are different. HMRC says NFTs are separately identifiable, so they are not pooled and the matching rules do not apply in the same way.
HMRC source: CRYPTO22200, pooling.
Example: Section 104 Pool in Plain English
Sophie buys 1 BTC for £20,000 and later buys another 1 BTC for £30,000. Her Section 104 pool now contains 2 BTC with a pooled allowable cost of £50,000, or £25,000 per BTC.
If Sophie sells 1 BTC for £40,000 and no same-day or 30-day matching applies, her gain is £15,000 before losses, reliefs, and the annual exempt amount.
That looks easy in a clean example. Real crypto portfolios are rarely clean. If Sophie also bridged assets, used DeFi, traded NFTs, and moved coins across three exchanges, the pool has to be rebuilt from the full transaction history.
Allowable Costs for UK Crypto CGT
HMRC does not let you deduct every cost. For crypto disposals, allowable costs may include the sterling amount originally paid for the asset, transaction fees paid to have a transaction included on a distributed ledger, certain professional costs, and costs of valuation or apportionment needed to calculate the gain.
Some exchange fees are allowable. Some are not. HMRC’s crypto manual gives different treatment for deposits, withdrawals, sterling purchases, fiat purchases, disposals, and token-to-token swaps.
Mining equipment and electricity costs generally do not get added to the token’s CGT cost basis just because mining produced the token. They may have a different Income Tax or trading treatment depending on the facts.
HMRC source: CRYPTO22150, allowable expenses.
How to Report Crypto Capital Gains to HMRC
UK taxpayers usually report crypto capital gains through Self Assessment. The SA108 supplementary pages are used with the SA100 return to record capital gains and losses.
You need more than a final number. Keep records showing:
- Transaction dates
- Asset names and quantities
- GBP market value at acquisition and disposal
- Fees and allowable costs
- Wallet transfers and exchange transfers
- Section 104 pool calculations
- Losses claimed or carried forward
HMRC source: SA108 Capital gains summary.
CARF Means HMRC Will See More Crypto Data
Crypto reporting is becoming harder to ignore. UK-based reporting cryptoasset service providers must collect and report cryptoasset data under the Cryptoasset Reporting Framework. Where reporting is required, first reports are due between 1 January and 31 May 2027.
That does not mean HMRC will calculate your tax correctly for you. It means HMRC will have more third-party data to compare against what you report.
HMRC source: CARF reporting guidance.
Common UK Crypto CGT Mistakes
- Treating every wallet transfer as a disposal
- Ignoring crypto-to-crypto trades because no GBP was withdrawn
- Using US FIFO logic instead of UK pooling rules
- Forgetting the 30-day matching rule
- Mixing NFT treatment with fungible token pooling
- Failing to convert values to GBP at the correct time
- Not claiming capital losses properly
- Relying on exchange tax reports that cannot see self-custody wallets
When to Use a UK Crypto Tax Specialist
If you made a few exchange trades, software may be enough. If you used DeFi, NFTs, multiple wallets, bridging, or several years of trading, the calculation becomes a reconciliation project.
Crypto Tax Made Easy works with UK crypto investors who need HMRC-ready numbers from messy transaction histories. Omar and our team reconcile the wallets, exchanges, DeFi activity, and missing cost basis before producing the figures you need for Self Assessment.
For UK-specific help, start here: UK crypto tax accountant.
UK Crypto Capital Gains Tax FAQ
Do UK residents pay Capital Gains Tax on crypto?
Often, yes. UK residents may owe Capital Gains Tax when they sell, exchange, spend, or gift crypto after allowable costs, capital losses, reliefs, and the annual exempt amount are applied.
What are the UK crypto capital gains tax rates for 2025/26 and 2026/27?
For most individual crypto gains, GOV.UK lists Capital Gains Tax rates of 18% and 24% for 2025/26 and from 6 April 2026 onwards. The rate depends on your taxable income and how much of your basic rate band is still available.
What is the UK crypto CGT allowance for 2025/26?
The annual exempt amount for individuals is £3,000 for 2025/26. GOV.UK also lists £3,000 for 2026/27.
Are crypto-to-crypto trades taxable in the UK?
Yes. HMRC treats exchanging one token for another as a disposal for Capital Gains Tax purposes. You need to calculate the GBP value at the time of the trade.
Are wallet transfers taxable in the UK?
A transfer between wallets you beneficially control is generally not a disposal. You still need records proving both wallets were yours.
Does HMRC use FIFO for crypto?
No. HMRC uses same-day matching, the 30-day rule, and Section 104 pooling for many fungible tokens. This differs from simple FIFO reporting.
How do I report UK crypto capital gains to HMRC?
You usually report taxable crypto gains through Self Assessment and the Capital Gains Summary pages when your gains or proceeds meet HMRC reporting requirements. The figures should be supported by transaction records, GBP values, fees, losses, and pooling calculations.
Can HMRC see my crypto transactions?
HMRC already receives data from some platforms and international reporting will expand through the Cryptoasset Reporting Framework. You should assume exchange and broker data can be matched against your Self Assessment return.
About the author
Founder of Crypto Tax Made Easy. Matt has worked in crypto tax since 2017, leading reconciliation work across DeFi, cost basis cleanup, exchange tax forms, and tax software reviews. CTME has reconciled 6.7M+ transactions for 1,410+ investors, and Matt has appeared with Binance and spoken at the Australia Crypto Convention.