Do I pay tax when I swap one crypto for another?

Yes — HMRC treats every crypto-to-crypto swap as a disposal of the first asset and an acquisition of the second. The disposal is at market value in £ at the swap time. Stablecoins (USDT, USDC) are not exempt — they are still treated as separate cryptoassets.

Are crypto losses tax-deductible?

Yes — capital losses can be offset against capital gains in the same year (before AEA) or carried forward to future years (claim within 4 years of the year of loss). Lost wallet keys, exchange collapses (FTX, Celsius), and rugpulls can all qualify with adequate evidence.

Is staking taxed when received or when sold?

Both. The £-value at receipt is taxed as miscellaneous income (or trading income if commercial). The same value becomes the cost basis for CGT when you later dispose of the staked tokens.

Are NFT sales subject to UK CGT?

Yes — NFTs are chargeable assets. Profits on resale are taxed as CGT (18%/24%) above the £3,000 AEA. NFT creators selling their own work may be classified as trading and taxed as income instead.

Do I need to report all my crypto trades?

You must declare on self-assessment if total disposal proceeds exceed £50,000 in a year, OR if total gains exceed the £3,000 AEA, OR if you owe income tax on staking/mining/airdrops. Many people file voluntarily even when below thresholds to keep records.

Are airdrops always taxable?

Airdrops received without any action (passive distribution) are typically not taxable on receipt — the cost basis is £0 and CGT applies on later sale. Airdrops received in exchange for action (e.g. social media post, KYC) are income-taxable at market value on receipt.

Will UK crypto tax change in 2026?

DAC8 / CARF reporting begins for tax year 2026 (transactions from 1 January 2026 reported by exchanges to HMRC starting 2027). HMRC may legislate the DeFi simplification that was consulted on in 2023/24 — watch the 2026 Finance Bill.

How do I value crypto for tax if it's illiquid?

Use the average of the highest and lowest sterling prices on the disposal day across at least two reputable exchanges. For genuinely illiquid tokens (no exchange listing), HMRC allows reasonable estimation methods provided you document them.

Crypto Tax Calculator UK 2025/26 | CGT 18/24% + Income Rates

How HMRC taxes crypto in 2025/26

HMRC treats cryptoassets as property, not currency. There are two tax regimes that can apply:

Capital Gains Tax — applies to most disposals: selling for fiat, swapping one coin for another (a stablecoin counts as a disposal), spending crypto on goods/services, and gifting (other than to UK-domiciled spouse). Rate 18% / 24% above £3,000 AEA.
Income Tax — applies to staking rewards, mining income (above £1,000 trading allowance), airdrops received in exchange for action (e.g. social media task), and crypto received as employment compensation. Rate 20% / 40% / 45%.

Each unit of crypto must be tracked through HMRC's share-matching rules: same-day, 30-day, then Section 104 pool. The pool aggregates buys at average cost. This creates significant accounting complexity for active traders — many use specialised software (Koinly, Recap, CoinTracker) to produce HMRC-compliant reports.

DeFi, NFTs, and edge cases

HMRC's DeFi guidance (DCM50000) treats most lending and liquidity-pool activities as disposals when assets are deposited into a smart contract because beneficial ownership is held to have transferred to a counterparty. This means depositing 1 ETH into a lending pool can be a disposal at market value, even if you receive a wrapped token like aETH back. Critics have argued this position is overly aggressive; HMRC consulted on reform in 2024 but no legislative change is yet in force as of May 2026.

NFTs are also chargeable assets under CGT — minting and reselling NFTs follow CGT rules, while creating NFTs as a regular activity may be classified as trading income (subject to higher rates plus Class 2/4 NI).

Lost or stolen crypto can be claimed as a capital loss if there is reasonable evidence (e.g. exchange collapse, hack confirmed). Negligible-value claims are accepted in clear cases (FTX bankruptcy, Celsius).

Mining at hobby level (occasional, not commercial) → income tax on the £-value at receipt + CGT on later disposal. Commercial mining → trading profits + Class 2/4 NI.

Three worked examples (UK 2025/26)

Example 1: Higher-rate trader, £8k Bitcoin gain

Liam earns £70,000 and bought 0.5 BTC at £20,000 each (cost £10,000) in 2023. He sells in 2025 for £18,000.

Calculation: Gain £18,000 − £10,000 = £8,000. AEA £3,000 → taxable £5,000. He's higher rate, so 24% × £5,000 = £1,200. Net gain £6,800.

Example 2: Staking rewards £2k + £4k gain

Aisha earns £45,000 salary. She receives £2,000 of ETH staking rewards during the year and also realises a £4,000 gain on a separate token sale.

Income tax on staking: £2,000 stacks on top of salary, so it lands in basic rate (£47,000 < £50,270) at 20% = £400. CGT: £4,000 − £3,000 AEA = £1,000 taxable. Stacked: £45,000 + £2,000 staking = £47,000 → £3,270 of basic-rate CGT band remains. £1,000 fully in basic rate at 18% = £180. Total tax £580.

Example 3: Mining hobbyist using trading allowance

Robin mines small amounts of altcoins generating £800/year of income at receipt market value.

Calculation: Within the £1,000 trading allowance — £0 income tax, no need to declare. When Robin later sells the coins, CGT applies on the gain from the receipt-value cost basis (£800) to the sale proceeds. If the coins doubled to £1,600 by sale, gain £800 — well within AEA, so still £0 CGT.

Common mistakes to avoid

Assuming crypto-to-crypto swaps are not taxable — they are CGT disposals at market value.
Forgetting the 30-day rule applies to crypto pools (HMRC explicitly extended share-matching to crypto).
Not separating the income (staking) from CGT (sale) — staking rewards are taxed twice in effect: income at receipt, CGT on later sale of the staked tokens.
Ignoring DeFi deposits — providing liquidity may be a disposal under HMRC's current guidance.
Failing to keep transaction records — HMRC accepts no excuses; gaps are penalised at the highest rate.
Believing offshore exchange data isn't reported — most exchanges now share data under CRS/DAC8 (Crypto-Asset Reporting Framework starts 2026).
Confusing the £1,000 trading allowance with the AEA — one is for income (small mining), one for CGT (gains).

When to use this calculator

Use this calculator before each large crypto disposal, at year-end to plan AEA usage, and when receiving any staking rewards, airdrops, or mining proceeds. Active traders should run quarterly checks and reconcile to specialist software annually. Re-run after every salary change because the band stack determines whether gains land in 18% or 24% CGT.

Regional differences (Scotland, Wales, Northern Ireland)

Income tax bands differ in Scotland (Starter 19%, Basic 20%, Intermediate 21%, Higher 42%, Advanced 45%, Top 48%). However, savings interest, dividends, and capital gains are taxed at UK-wide rates regardless of where you live, because these are reserved (non-devolved) tax categories. Wales uses UK rates for income tax (the Welsh rate is currently 10p matched to UK basic rate). Northern Ireland uses UK rates throughout. Your Personal Savings Allowance, Dividend Allowance, and Annual Exempt Amount are identical across all UK nations.

Crypto Tax Calculator — UK 2025/26

CGT calculator

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