UK Capital Gains Tax on cryptoassets uses HMRC Section 104 pooling (mirroring share pooling). Matching priority: same-day → 30-day bed-and-breakfasting → Section 104 pool. The 2025/26 Annual Exempt Amount is £3,000. From 30 October 2024 the CGT rate is 18% for gains in the basic rate band and 24% above. Crypto-to-crypto swaps are taxable disposals. DeFi lending typically triggers CGT. NFTs are individually-pooled. Staking and airdrops are usually Income Tax at receipt + CGT at disposal. Reporting via Self-Assessment SA108 by 31 January; £50k+ disposal threshold triggers mandatory reporting.
UK Crypto Capital Gains Tax Calculator
Quick estimate using pool average cost basis (does not model individual transactions — for detailed pooling use Koinly/CoinTracker or similar).
1. HMRC's Tax Treatment of Cryptoassets
The UK does not recognise cryptoassets as money or currency. Since the publication of HMRC's first dedicated guidance in March 2018, refined and consolidated into the Cryptoassets Manual in March 2021 with substantial updates in February 2022 (DeFi), February 2024 (NFTs and staking), and continuing updates through 2025, HMRC's position has been clear: cryptoassets are property for tax purposes. Disposals therefore attract Capital Gains Tax (or Income Tax / Corporation Tax if the activity is trade or income in nature). The Cryptoassets Manual is the authoritative source, supplemented by the published policy paper at gov.uk/government/publications/tax-on-cryptoassets and the underpinning legislation in TCGA 1992 and ITA 2007.
The HMRC framework distinguishes between four broad cryptoasset categories:
- Exchange tokens: Bitcoin (BTC), Ether (ETH), Litecoin (LTC), Cardano (ADA), Solana (SOL) — used as means of payment or store of value.
- Utility tokens: tokens that grant access to a service or product on a blockchain platform.
- Security tokens: tokens conferring rights similar to shares or debt — subject to FCA regulation and potentially SDRT.
- Stablecoins: tokens designed to maintain a stable value relative to fiat currency (USDT, USDC, DAI) — taxed in the same way as exchange tokens.
- NFTs: non-fungible tokens treated as individual assets, not pooled.
2. UK Capital Gains Tax Rates for Crypto in 2025/26
Following the Autumn 2024 Budget on 30 October 2024, the UK Capital Gains Tax rates were materially restructured. The new rates apply to all disposals made on or after 30 October 2024, with the prior rates (10% basic / 20% higher for non-residential assets) applying to disposals before that date. The new rates align non-residential CGT with the longstanding residential property rates.
UK CGT Rates Table — Cryptoassets 2025/26
| Gain Band (after AEA) | Rate (from 30 Oct 2024) | Rate (pre 30 Oct 2024) |
|---|---|---|
| Within basic rate income tax band | 18% | 10% |
| Above higher rate threshold (≥£50,270 total taxable income E/W/NI) | 24% | 20% |
| Trustees and personal representatives | 24% | 20% (estates 24% from 6 April 2024) |
| Annual Exempt Amount (individuals) | £3,000 | £3,000 (£12,300 pre April 2023) |
| Annual Exempt Amount (trusts) | £1,500 | £1,500 |
| Reporting threshold (proceeds) | £50,000 | £50,000 (£49,200 pre April 2023) |
How the Basic/Higher Rate Split Works
The split between 18% and 24% is determined by the investor's total taxable income (employment, self-employment, pension, dividends, interest etc.) PLUS the chargeable gains, compared to the basic rate threshold of £50,270 (England, Wales, Northern Ireland for 2025/26). Scotland has a different income tax structure but the CGT rates remain at the UK level.
Worked example: investor has £40,000 employment income (after personal allowance) and £20,000 net crypto gains (after AEA). Total = £60,000. Basic rate headroom = £50,270 − £40,000 = £10,270. So £10,270 of the gain is taxed at 18% = £1,848.60; the remaining £9,730 at 24% = £2,335.20. Total CGT = £4,183.80. Effective rate 20.92% on the £20,000 gain.
3. Section 104 Pooling — The Foundation
Section 104 of TCGA 1992 requires individuals to pool all holdings of the same type of asset, with each acquisition increasing the total cost and total quantity of the pool, and each disposal reducing it proportionately. The rules originally apply to shares and securities but HMRC has extended the same mechanism to cryptoassets via the Cryptoassets Manual at CRYPTO22250.
A separate pool is maintained for each distinct cryptoasset — Bitcoin has one pool, Ether another, Cardano another. Stablecoins (USDT, USDC etc.) each get their own pool. Within each pool, individual transactions lose their identity — only the aggregate cost and quantity matter for calculating the cost basis of disposals.
Section 104 Pooling Worked Example
Investor's BTC transactions during 2025/26:
| Date | Transaction | BTC | £ Value | Running Pool Total |
|---|---|---|---|---|
| 1 May 2025 | Buy 1 BTC | +1 | £40,000 | 1 BTC, cost £40,000 |
| 15 June 2025 | Buy 0.5 BTC | +0.5 | £25,000 | 1.5 BTC, cost £65,000 |
| 20 August 2025 | Sell 0.8 BTC for £56,000 | −0.8 | Cost basis: (£65,000 ÷ 1.5) × 0.8 = £34,667 | 0.7 BTC, cost £30,333 |
| 10 October 2025 | Buy 0.3 BTC | +0.3 | £21,000 | 1.0 BTC, cost £51,333 |
Gain on 20 August disposal = £56,000 − £34,667 = £21,333 (subject to 30-day matching check). Pool after the disposal carries forward to subsequent transactions.
4. The Same-Day Rule
Where the investor disposes of a cryptoasset AND acquires the same type of cryptoasset on the SAME DAY, the disposal is matched against the same-day acquisition first, in priority over the Section 104 pool (TCGA 1992 s.105(1)). The matched same-day acquisition's actual cost becomes the cost basis for the disposal — not the pooled average.
Worked example: investor sells 1 ETH at 10:00 AM for £2,500 and buys 1 ETH at 4:00 PM the same day for £2,400. The disposal is matched against the same-day acquisition. Gain = £2,500 − £2,400 = £100. The previously held ETH pool is unaffected. This rule prevents intra-day trading from artificially generating losses (or gains) against the pool average.
5. The 30-Day Bed-and-Breakfasting Rule
Where the investor acquires the same type of cryptoasset within 30 days AFTER a disposal, the acquisition is matched against the disposal in priority over the Section 104 pool (TCGA 1992 s.106A). This 'bed-and-breakfasting' rule prevents loss-harvesting through sell-and-immediately-rebuy schemes.
30-Day Rule Worked Example
Investor's ETH pool: 10 ETH at total cost £30,000 (average £3,000 each). On 1 May 2025 sells 5 ETH at £2,500 each (£12,500 proceeds). Without 30-day rule: cost basis 5 × £3,000 = £15,000, loss £2,500. On 15 May 2025 (within 30 days) buys 5 ETH at £2,600 each (£13,000). The 30-day rule applies — the 5 ETH sold on 1 May is matched against the 5 ETH bought on 15 May. Cost basis = £13,000, disposal proceeds £12,500, loss = £500 (not £2,500). The 5 ETH from 15 May are 'used up' by the matching — they do NOT enter the pool. Pool unchanged at 10 ETH / £30,000.
6. Matching Priority Order
For every crypto disposal, HMRC requires application of matching rules in this strict order:
- Same-day acquisitions (TCGA 1992 s.105(1) as extended to crypto).
- 30-day bed-and-breakfasting acquisitions (TCGA 1992 s.106A as extended).
- Section 104 pool for any remainder.
If a disposal is partially matched under same-day and 30-day rules, only the unmatched portion uses the pool. Each matching uses the actual cost of the matched acquisition, not the pool average.
7. Crypto-to-Crypto Swaps
Every crypto-to-crypto swap is treated as TWO transactions: a disposal of the first asset and an acquisition of the second, both at the market value of the swap. The Cryptoassets Manual at CRYPTO20250 makes this explicit and HMRC has confirmed it in multiple technical briefings.
Worked example: investor swaps 1 ETH (current market value £2,500, original pool cost £2,000) for 100 ADA at the same £2,500 value. The transaction:
- Disposal of ETH: proceeds £2,500, cost basis £2,000, gain £500 (subject to AEA / pool matching).
- Acquisition of ADA: 100 ADA enters the ADA Section 104 pool at £2,500 cost.
Stablecoins are NOT exempt — converting BTC to USDT is a disposal of BTC. This catches many casual traders by surprise; total annual disposal proceeds can easily exceed £50,000 from frequent rebalancing even where the underlying portfolio value has not increased.
8. DeFi — Lending, Staking, Liquidity Provision
HMRC's DeFi position, published in February 2022 and updated through 2024-2025, takes a strict interpretation that many DeFi transactions trigger CGT events. The Cryptoassets Manual at CRYPTO61000+ provides the framework:
DeFi Lending (Aave, Compound, Maker)
If the user transfers beneficial ownership of the underlying coins to the protocol (typical for pooled protocols where coins are commingled), the deposit is a disposal for CGT purposes. The receipt token (cToken, aToken, gauge token) is acquired at the same market value. Withdrawal is a disposal of the receipt token and acquisition of (potentially different quantity of) the underlying coins.
The interest/yield earned is typically Income Tax (or potentially Miscellaneous Income under ITTOIA 2005), not capital. Tax-free dividends do NOT apply to DeFi yields — these are conceptually different from traditional dividends.
Liquidity Provision (Uniswap, Curve, Balancer)
Adding tokens to a liquidity pool is typically a disposal of the contributed tokens and acquisition of LP (liquidity provider) tokens. The LP tokens represent a claim on a share of the pool, but HMRC's view is that beneficial ownership of the original tokens has transferred to the pool. Removing liquidity is the reverse: disposal of LP tokens, acquisition of the underlying tokens at the proportionate share. Impermanent loss creates a particularly complex calculation.
Staking (PoS Validators, Delegated Staking)
Staking rewards are typically Income Tax at the market value at the moment of receipt (s.687 ITTOIA 2005 miscellaneous income). Subsequent disposal of the reward tokens triggers CGT, with cost basis being the value already taxed as income. Whether the staking is a 'trade' depends on the activity's frequency, scale and organisation — solo validator operations may constitute a trade subject to Class 2/4 NICs.
9. NFT Taxation
Non-Fungible Tokens are individual assets — NOT pooled under Section 104 because they are not 'of the same kind' as one another. Each NFT has its own cost basis, disposal proceeds and calculation. NFT-to-NFT swaps and NFT-to-token swaps are disposals at market value. Gas fees and platform commissions (Opensea 2.5%, blur, magiceden) are allowable expenses under s.38 TCGA 1992.
For NFT creators selling their own work, HMRC's position is:
- Occasional sales by individual artists: typically Miscellaneous Income (s.687 ITTOIA 2005), with cost basis being any creation costs incurred.
- Prolific NFT creators operating as a business: trading income subject to Income Tax and Class 2/4 NICs.
- Royalties from secondary sales (built into NFT smart contracts): Income Tax as it accrues.
NFT collectors who trade frequently may also cross the line into trading — particularly where flipping is rapid and high-volume. The Badges of Trade test (Schedule D Case I, modernised in current ITA 2007 provisions) applies.
10. Airdrops and Hard Forks
Airdrops divide into two tax treatments per HMRC's Cryptoassets Manual:
- Airdrops received without service (e.g., random distribution to all wallets holding a specific token): no Income Tax at receipt. Cost basis for future CGT = £0.
- Airdrops received for service or transaction (e.g., follow on social media, complete tasks, trading rebates): Income Tax at market value at time of receipt.
Hard forks (Bitcoin Cash from Bitcoin, Ethereum Classic from Ethereum) create new tokens for existing holders. HMRC's position: split the original cost basis between the new and original token in proportion to their market values immediately after the fork (Cryptoassets Manual CRYPTO22100). The original pool is reduced by the proportionate share; a new pool is established for the forked token at the allocated cost.
11. Crypto Mining
Mining income is taxed depending on whether the activity constitutes a trade or hobby (the Badges of Trade test):
- Hobby mining (occasional, small-scale, no business infrastructure): Miscellaneous Income at fiat value of mined coins at receipt, with deductible expenses for electricity and equipment.
- Trade mining (commercial-scale, dedicated equipment, business intent): Trading income, deductible expenses, Class 4 NICs above £12,570, VAT registration thresholds may apply.
Subsequent disposal of mined coins triggers CGT (or trading profits if continuing as trade), with cost basis being the income-taxed value. Mining-pool rewards typically follow the same rules — the pool operator usually does not affect the participant's tax position.
12. The £50,000 Reporting Threshold
Individuals MUST report cryptoasset disposals to HMRC where total disposal proceeds in a tax year exceed £50,000, even if the gain is within the £3,000 AEA. This is part of the wider CGT reporting requirement set out in s.7 TMA 1970 and HMRC's published guidance.
The £50,000 threshold counts gross proceeds — not net gains. An investor who buys £100,000 of crypto then sells it for £55,000 has £55,000 of proceeds and must report (with a £45,000 loss to claim). Frequent crypto-to-crypto traders can quickly exceed £50,000 through rebalancing without realising actual gains — HMRC enquiries often start by aggregating annual proceeds from exchange data.
13. HMRC's Connect System and CARF
HMRC's Connect analytical platform combines data from 50+ sources to identify undeclared income and gains. Crypto-relevant sources:
- Mandatory information sharing from FCA-registered UK exchanges (Coinbase, Kraken, eToro UK, Bitstamp, others).
- Bank account flows: deposits/withdrawals correlated with known exchange wallets.
- OECD Common Reporting Standard (CRS) data from non-UK financial institutions.
- HMRC's One-to-Many 'nudge letter' campaigns — over 75,000 letters issued in 2024-2025 targeting suspected undeclared crypto activity.
From 1 January 2026, the UK implements the OECD Crypto-Asset Reporting Framework (CARF). UK-based exchanges and crypto service providers must report to HMRC annually: customer identity, total annual transactions per cryptoasset, total proceeds, and balance information. CARF data will substantially expand HMRC's visibility into individual crypto activity. HMRC has confirmed CARF data will be used both for direct enquiries and to populate pre-filled CGT returns from 2027 onwards.
14. Self-Assessment Crypto Reporting
Crypto gains and losses are reported on the Self-Assessment Capital Gains Summary (SA108) by 31 January following the tax year. Required for each disposal or aggregated group:
- Date of disposal.
- Description (BTC, ETH, NFT-X etc.).
- Disposal proceeds in £.
- Acquisition cost in £.
- Allowable expenses (gas fees, commissions, professional fees, valuation reports).
- Gain or loss.
HMRC explicitly accepts software-generated reports from specialist tools (Koinly, CoinTracker, Crypto Tax Calculator, Recap, Accointing) provided they correctly apply Section 104 pooling and matching rules. The investor remains responsible for accuracy — software errors do not constitute a defence to penalties.
Real-Time CGT Service
For investors wishing to pay CGT before the 31 January deadline (often for cash flow planning), HMRC's Real-Time Capital Gains Tax service at gov.uk/guidance/use-the-real-time-capital-gains-tax-service accepts immediate online declarations and payments. The service does NOT replace the Self-Assessment requirement — the disposals must still be reported on the annual SA108 — but provides earlier certainty on tax due.
15. Loss Relief and Carry Forward
Crypto disposal losses are deductible against capital gains in the same tax year, with excess losses carried forward indefinitely against future capital gains. The mechanics (TCGA 1992 ss.2-3):
- Net same-year losses first reduce same-year gains across all assets.
- Excess losses carry forward to future years against future gains — no time limit.
- Losses MUST be claimed on the Self-Assessment return for the year they arise — a 4-year time limit from end of year applies for loss claims.
- Losses cannot generally be set against income (other than via specific negligible value claims under s.24 TCGA 1992 for completely worthless assets).
Negligible Value Claims for Failed Tokens
Where a cryptoasset has become 'of negligible value' (worth substantially less than original cost and unlikely to recover), the investor can elect under s.24 TCGA 1992 to treat the asset as having been disposed of at nil value. This crystallises a capital loss usable against current and future gains. Practitioner experience with HMRC acceptance of negligible value claims for failed crypto projects (e.g., FTT-listed tokens, abandoned projects, rugpulls) is mixed — detailed evidence of the project's collapse (Tornado Cash, FTX, Celsius examples) is essential. HMRC has been more sympathetic to claims for failed centralised exchanges (Mt Gox, FTX, Celsius) than for decentralised project failures.
16. Source Authority and Further Reading
- GOV.UK — Tax on cryptoassets policy paper
- HMRC Cryptoassets Manual (full)
- HMRC CRYPTO22000 — Disposals and CGT
- HMRC CRYPTO22250 — Pooling
- HMRC CRYPTO61000 — DeFi taxation
- GOV.UK — Capital Gains Tax overview
- GOV.UK — CGT rates and allowances
- GOV.UK — Changes to CGT rates (Autumn Budget 2024)
- GOV.UK — Check if you need to pay tax on cryptoassets
- GOV.UK — Real-Time CGT Service
- UK Legislation — Taxation of Chargeable Gains Act 1992
- UK Legislation — Income Tax Act 2007
- OECD CARF — Crypto-Asset Reporting Framework
- FCA — Cryptoassets regulation
- ICAEW — Tax on cryptoassets technical guidance
- CIOT — Chartered Institute of Taxation
- HMRC — HM Revenue & Customs main page
17. Related Calculators on UK Calculator
- Capital Gains Tax Calculator
- CGT Calculator UK
- Cryptocurrency Tax Calculator
- Bitcoin Tax Calculator
- Ethereum Tax Calculator
- NFT Tax Calculator
- Staking Rewards Tax Calculator
- Income Tax Calculator
- VCT & EIS Tax Relief Calculator
- IHT Mitigation Strategies
- Share Loss Relief Calculator
- Self-Assessment Calculator
18. Frequently Asked Questions
How is crypto taxed in the UK in 2025/26?
HMRC treats crypto as property. Disposals attract CGT (or Income Tax for trade/mining/staking). AEA £3,000, rates 18% basic / 24% higher from 30 Oct 2024. Pooling, same-day, 30-day matching rules apply. Reporting on Self-Assessment SA108 by 31 January.
What is the UK crypto CGT rate?
18% basic / 24% higher from 30 October 2024 (previously 10%/20%). Split determined by total taxable income vs £50,270 basic rate threshold (E/W/NI). Trustees and estates 24%. Carried interest and residential property already at higher rates pre-Budget.
How does HMRC Section 104 pooling work for crypto?
Each cryptoasset has its own Section 104 pool (TCGA 1992 ss.104-105). Each acquisition adds to total cost and quantity; each disposal removes proportionate share at average cost basis. Mirrors share pooling — HMRC extended to crypto in Cryptoassets Manual CRYPTO22250.
What is the 30-day bed-and-breakfasting rule for crypto?
Acquisitions of the same crypto within 30 days AFTER a disposal are matched against the disposal in priority over the pool (TCGA 1992 s.106A). Prevents loss-harvesting. Matching priority: same-day → 30-day → Section 104 pool. The 30-day acquisition's actual cost becomes the disposal cost basis.
What is the crypto AEA for 2025/26?
£3,000 Annual Exempt Amount per individual (£1,500 for trusts). Reduced from £12,300 pre April 2023. Covers total gains across all assets. Cannot be carried forward — use-it-or-lose-it. Year-end timing planning to use AEA across two tax years.
How are DeFi protocols taxed in the UK?
HMRC's strict interpretation: lending coins typically a disposal (CRYPTO61000+). Receipt tokens (cToken/aToken/LP) acquired at market value. Yield typically Income Tax. Liquidity provision often disposal. Treasury 2023-2024 consulted on no-disposal carve-out but rule unchanged at June 2025.
Are NFTs subject to UK CGT?
Yes — each NFT is an individual asset (NOT pooled — not 'same kind'). Disposal proceeds minus acquisition cost minus gas/commissions. NFT-to-NFT swaps and NFT-to-token swaps are disposals. NFT creators: occasional sales miscellaneous income; prolific creators trading income.
How are crypto airdrops and staking rewards taxed?
Receipt: Income Tax at market value if for service/staking; no income tax for unconditional airdrops. Disposal: CGT at later disposal, cost basis = income-taxed value. Dual-tax for active stakers/yield farmers: Income Tax (20-45%) + CGT (18-24%).
What is the 60-day reporting requirement for crypto?
No specific 60-day rule for crypto (unlike UK residential property). Crypto reports on Self-Assessment SA108 by 31 January. £50,000+ disposal proceeds in a tax year mandates reporting even if gain ≤AEA. From Jan 2026, OECD CARF gives HMRC visibility into exchange transactions.
How does HMRC track crypto transactions?
HMRC Connect aggregates: mandatory FCA-exchange data, bank flows, OECD CRS/CARF data, 75,000+ nudge letters in 2024-2025. Penalties up to 100% of tax for deliberate evasion (Sch 24 FA 2007). Worldwide Disclosure Facility for voluntary correction.
Can I deduct crypto trading losses?
Yes — set against same-year capital gains, excess carried forward indefinitely (TCGA 1992 ss.2-3). Must claim on Self-Assessment within 4 years. Negligible value claims (s.24) for worthless tokens can crystallise losses. HMRC mixed on DeFi project failures vs centralised exchange collapses.
How do I report crypto on Self-Assessment?
Self-Assessment SA108 Capital Gains Summary by 31 January. Required per disposal: date, asset, proceeds, cost, gain/loss. HMRC accepts software outputs (Koinly, CoinTracker, Recap) provided pooling rules correct. Real-Time CGT service for early payment.
Is crypto-to-crypto a taxable event?
Yes — every swap is a disposal of asset 1 and acquisition of asset 2 at market value. Stablecoins NOT exempt — BTC to USDT triggers BTC disposal. Cryptoassets Manual CRYPTO20250 explicit. Frequent rebalancing easily exceeds £50k reporting threshold.
What about crypto received from employment?
RCA crypto (most established coins, tradable on exchange): PAYE income tax + Class 1 NICs at receipt. Non-RCA crypto: Self-Assessment income tax only. Later disposal triggers CGT with income-taxed value as cost basis. EIM01620+. Cash flow risk: PAYE liability immediate.
How does the Autumn 2024 Budget change crypto tax?
Main CGT rates 10%/20% → 18%/24% from 30 Oct 2024. Carried interest 18%/28% → 32% from April 2025 (further reforms April 2026). CARF implementation January 2026. SDRT extension to certain tokenised securities. Disposal-date basis for the rate change.
About this calculator
Last updated 2026-05-25 by Mustafa Bilgic, independent operator of UK Calculator. Calculations are aligned with HMRC's Cryptoassets Manual (CRYPTO22000-CRYPTO81000), TCGA 1992 (as amended by Finance Acts 2023-2025), and the Autumn Budget 2024 CGT rate changes. Worked examples cross-checked against published HMRC guidance and OECD CARF technical notes. This is a quick estimator — for detailed transaction-level pooling, use specialist crypto tax software (Koinly, CoinTracker, Recap, Crypto Tax Calculator). Consult a chartered tax adviser (CIOT, ATT) for DeFi, NFT, mining or staking activity, particularly above £50,000 annual proceeds.