Crypto Tax in the UK: 2026 Overview
HMRC treats cryptocurrency as a capital asset. Capital Gains Tax (CGT) applies when you dispose of crypto — selling, trading, or spending. The UK has a relatively straightforward crypto tax framework, but rates increased in recent years.
Tax Rates
| Category | Rate | Threshold | Notes |
|---|---|---|---|
| {'text': 'CGT (basic rate)', 'highlight': True} | 10% | Income under GBP 50,270 | After annual exemption |
| {'text': 'CGT (higher rate)', 'highlight': True} | 20% | Income over GBP 50,270 | After annual exemption |
| Annual CGT Exemption | GBP 3,000 | 2026/27 tax year | First GBP 3,000 gains tax-free |
| Income Tax (mining/staking) | 20-45% | Based on income band | Taxed as miscellaneous income |
| DeFi lending income | 20-45% | Based on income band | Treated as income |
Taxable Events
- Selling crypto for GBP or any fiat currency
- Trading one crypto for another (BTC to ETH)
- Using crypto to pay for goods or services
- Giving crypto to someone (not spouse/civil partner)
NOT taxable: Buying crypto with GBP, transferring between your own wallets, gifts to spouse/civil partner, donations to charity.
Bed and Breakfast Rule
Unlike the US, the UK has a 30-day "bed and breakfast" rule (Section 104 pool). If you sell crypto and rebuy the same token within 30 days, the repurchase is matched with the sale for CGT purposes — effectively preventing wash sales. Plan your tax-loss harvesting with a 30+ day gap or buy a different asset.
Reporting
Report crypto gains on your Self Assessment tax return (SA108 supplementary pages). If total crypto gains exceed 4x the annual exemption, you must report even if below the exemption after offsetting losses. Deadline: January 31 following the tax year end (April 5).
Frequently Asked Questions
How much crypto tax do I pay in the UK?
10% CGT if you are a basic-rate taxpayer, 20% if higher-rate. The first GBP 3,000 in annual gains is tax-free (2026/27 exemption).
Is crypto-to-crypto trading taxable in the UK?
Yes. HMRC treats swapping one crypto for another as a disposal, triggering CGT on any gain.
What is the bed and breakfast rule?
If you sell crypto and rebuy the same token within 30 days, the sale and repurchase are matched for CGT. This prevents UK tax-loss harvesting via immediate rebuy.
Do I need to report crypto to HMRC?
Yes, if you have gains exceeding your annual exemption or if total disposals exceed 4x the exemption. Report via Self Assessment.