Calculate your NFT resale profit and UK CGT liability including platform fees, gas costs, and HMRC Section 104 rules.
NFT Profit & CGT
Frequently Asked Questions
NFT profits are generally taxed as capital gains in the UK. HMRC treats NFTs as a form of cryptoasset. Profits above the £3,000 annual allowance are subject to CGT at 18% or 24%.
From October 2024, CGT on NFTs is 18% for basic rate taxpayers and 24% for higher/additional rate taxpayers.
If you trade NFTs frequently as a business, HMRC may treat profits as trading income taxed at income tax rates. Casual investors are taxed under CGT rules.
Yes. Allowable costs include: purchase price, platform fees, gas fees, and other incidental costs of acquisition and disposal. OpenSea fees and Ethereum gas are deductible.
The cost basis is the GBP value of ETH spent at the time of purchase. The ETH disposal is also a CGT event — you need to account for the gain/loss on the ETH used.
Yes. Royalties received from NFT secondary sales are generally treated as income tax rather than CGT.
Creating and selling your own NFT may be treated as trading income (taxed as income) or a personal creation disposal (taxed under CGT rules, less likely for significant creators).
If total proceeds exceed £50,000 you must report to HMRC even if no CGT is owed. Below £50,000, you only need to report if gains exceed the £3,000 allowance.
Use the GBP market value at the time of the transaction, typically based on the ETH equivalent converted at that day's exchange rate.
Yes. NFT losses are capital losses and can be offset against any other capital gains including crypto, shares, or property in the same or future tax years.
Keep: purchase date and GBP value, sale date and GBP value, transaction hashes, platform fee receipts, and any gas cost records. You need 5+ years of records.
Gaming NFTs used in play are treated the same as other cryptoassets. Profits on sale are subject to CGT unless HMRC decides they're gambling winnings (currently no specific guidance).