Crypto Tax UK (2026/27): CGT, Income Tax and HMRC Reporting

Table of Contents

Short answer: You pay Capital Gains Tax when you dispose of crypto: selling it, swapping it for another token, spending it or giving it away (except to a spouse or civil partner). For 2026/27 the first £3,000 of total gains is tax-free, and the rest is taxed at 18% or 24% depending on your income. Crypto from staking, mining or a job is taxed as income when you receive it. Buying and holding is not taxed. Since 1 Jan 2026, UK platforms have been collecting your details for HMRC. Crypto ETNs in an ISA or SIPP escape these taxes, but since 6 Apr 2026 new ISA purchases must go through an Innovative Finance ISA.

Do you pay tax on crypto in the UK? #

Yes, but usually only when something happens to it. HMRC does not treat crypto as money. For most individuals it is an asset, like a share, and two taxes can apply:

Capital Gains Tax (CGT) when you dispose of tokens at a profit.
Income Tax, and sometimes National Insurance, when you receive tokens as a reward or as pay.

HMRC’s guidance on receiving cryptoassets confirms you pay no tax when you buy tokens yourself, only when you sell.

When do you pay Capital Gains Tax on crypto? #

HMRC’s Cryptoassets Manual (CRYPTO22100) lists four kinds of disposal:

selling tokens for money;
exchanging them for a different type of token;
using them to pay for goods or services;
giving them away, unless the gift is to your spouse or civil partner.

Swaps catch people out. Trading bitcoin for ether is a disposal of the bitcoin, even though no pounds reach your bank. For a gift, you are treated as receiving its sterling value. Gifts to charity are generally free of CGT.

Moving tokens between wallets you control is not a disposal, because you keep beneficial ownership. One trap: a fee paid in tokens is treated as a small disposal in its own right (CRYPTO22280).

What is the crypto tax-free allowance and CGT rate for 2026/27? #

The CGT allowance, officially the annual exempt amount, is £3,000 for 2026/27, the same as in 2025/26 and 2024/25, according to HMRC’s rates and allowances table. It was £12,300 as recently as 2022/23. It covers all your gains for the year, from shares, property and crypto combined, not £3,000 per asset.

The CGT rates for gains from 6 Apr 2026 are:

18% on gains that, added to your taxable income, fall within the basic rate band (£37,700 for 2026/27);
24% above that band, and on all gains for higher and additional rate taxpayers.

The Budget 2025 rates annex shows the same 18%, 24% and £3,000 for 2025/26 and 2026/27, so the Budget left them unchanged. We found no later change as of 6 Oct 2026.

Hypothetical example: a higher rate taxpayer makes £10,000 of crypto gains in 2026/27 and no other gains. After the £3,000 allowance, £7,000 is taxed at 24%: a bill of £1,680.

The £50,000 rule. If you are registered for Self Assessment, you must report gains on your return when your total disposal proceeds exceed £50,000. This applies from 2023/24 onwards, even if your gains are below the allowance (gov.uk). The old “four times the allowance” test only applies to earlier years. Swaps count as disposals, so active traders can pass £50,000 without cashing out much.

You cannot choose which coins you sold. HMRC’s pooling guidance uses the identification rules that apply to shares, in this order:

Same-day rule. A sale is matched first with tokens of the same type bought that day.
30-day rule. Next, with tokens of the same type bought in the 30 days after the sale. This “bed and breakfast” rule stops you selling at a loss and buying straight back just to bank the loss.
Section 104 pool. Anything left comes from your pool, at average cost. Each token has its own pool, so bitcoin, ether and XRP are tracked separately.

Hypothetical example (2026/27, fees ignored). You hold 10 tokens bought for £12,000 in total, an average of £1,200 each.

On 1 Sep 2026 you sell 5 for £5,000. Against the pool, that is a £1,000 loss.
On 10 Sep 2026 you buy 5 back for £4,500.
The 30-day rule matches the sale with that purchase, so the result is a £500 gain, not a £1,000 loss. Your pool stays at 10 tokens costing £12,000.

HMRC’s helpsheet HS284 explains the same rules for shares.

When is crypto taxed as income? #

Income Tax is charged on the sterling value of tokens when you receive them:

Staking and mining. Unless the activity amounts to a trade, rewards are taxed as miscellaneous income, less appropriate expenses (CRYPTO21200, CRYPTO21150).
Airdrops. Taxable as income only if received for, or in expectation of, a service. Selling them later can still create a capital gain (CRYPTO21250).
Pay in crypto. Tokens from an employer attract Income Tax and National Insurance. HMRC treats bitcoin-type tokens as readily convertible assets, so the employer must run them through PAYE (CRYPTO21100).

Crypto income counts towards the £1,000 trading and miscellaneous income allowance. HMRC’s current guidance says to contact it if your miscellaneous income is between £1,000 and £2,500, and to register for Self Assessment above £2,500. When you later sell tokens you paid Income Tax on, CGT applies only to the rise in value since you received them.

DeFi lending and liquidity pools. HMRC’s current view is that lending tokens, or adding them to a liquidity pool, can itself be a CGT disposal if you transfer beneficial ownership (CRYPTO61620). On 13 Jul 2026 the government published draft legislation to treat many crypto loans, borrowing arrangements and liquidity pool deposits as “no gain, no loss”, so CGT would wait until you actually dispose of the tokens. It is due to take effect from 6 Apr 2027 through Finance Bill 2026-27 and is not yet law. The government also plans to treat eligible stablecoins more like money from April 2027. The loans paper does not cover staking rewards, which HMRC still taxes as income on receipt.

Can you claim crypto losses? #

Yes, but you must report a loss to use it. Losses are set against gains in the same year first, and anything unused can be carried forward. You have four years from the end of the tax year of the disposal to claim (gov.uk), so a loss made in 2026/27 must be claimed by 5 Apr 2031.

Collapsed tokens. If a token becomes worthless while you hold it, a negligible value claim treats your whole pool as sold and bought back at the value you state, which can be £nil, crystallising the loss (CRYPTO22500).
Lost keys. Not a disposal, but a negligible value claim may be possible if there is no prospect of recovery (CRYPTO22400).
Theft and scams. HMRC does not treat theft as a disposal, so there is no capital loss. If you paid for tokens you never received, you may not be able to claim one either (CRYPTO22450).

How do you report crypto to HMRC? #

You do not get a CGT bill; you work it out yourself. Most people use Self Assessment, filed in pounds. Returns for 2024/25 onwards include a dedicated cryptoasset section for gains. Crypto income, such as staking, goes in the existing income sections.

Deadlines for the 2025/26 tax year, which ended on 5 Apr 2026:

5 Oct 2026: register if you need a return and have not sent one before. Register later and HMRC gives you three months from its letter to file, but payment is still due by 31 Jan 2027.
31 Oct 2026: paper returns.
31 Jan 2027: online returns and payment.

Gains made in 2026/27 go on next year’s return. If you are not in Self Assessment, you may be able to use the real-time CGT service by 31 December in the tax year after the sale. For tax missed in earlier years, HMRC runs a Cryptoasset Disclosure Service.

How does HMRC know about your crypto? #

Increasingly, platforms tell it. Under the OECD’s Cryptoasset Reporting Framework (CARF), UK crypto service providers have been collecting user and transaction data since 1 Jan 2026. You must give each provider your full name, date of birth, home address and country, and tax identification number, such as your National Insurance number or UTR. Giving a UK provider wrong details, or none, risks a penalty of up to £300.

Providers must file their first report between 1 Jan and 31 May 2027, covering calendar 2026, then by 31 May each year. Data from platforms abroad reaches HMRC through their home tax authority, if that country follows the same rules.

HMRC already writes to crypto users. Its guidance confirms it may contact people who have traded crypto by letter, email or text. A Freedom of Information request reported by the BBC found more than 81,000 such messages went out in 2025/26, almost three times the 2023/24 figure (Irwin Mitchell). These “nudge” letters are not investigations, but do not ignore one. HMRC’s statistics show 17,600 people reported CGT-liable crypto disposals in 2024/25. Penalties for undeclared tax can reach 100% of the tax, plus interest.

How are crypto ETNs and crypto shares taxed? #

A London-listed crypto ETN (cETN) is a note backed by bitcoin or ether; see our crypto ETN UK guide.

In an ISA. HMRC’s cETN policy note let cETNs into stocks and shares ISAs from 8 Oct 2025, then reclassified them as Innovative Finance ISA investments from 6 Apr 2026. HMRC’s ISA manager guidance bars new cETN purchases into a stocks and shares ISA from that date; notes held there before 6 Apr 2026 can stay. Inside any ISA there is no tax on income or gains, within the £20,000 allowance for 2026/27. Few providers offer cETNs in an Innovative Finance ISA; our crypto ETF UK guide covers the platforms. The government says it will keep this under review, with a view to returning cETNs to the stocks and shares ISA later.

In a SIPP. Pension schemes may hold cETNs from 8 Oct 2025. Pension investment gains are exempt from CGT and investment income from Income Tax (PTM024400). Tax comes on withdrawal: you can usually take 25% tax-free, up to £268,275, and the rest counts as taxable income.

In a general account. HMRC describes cETNs as debt securities. A sale is a CGT disposal, and the HS284 same-day, 30-day and pooling rules apply as for shares. A bitcoin ETN and bitcoin are different assets with separate pools. We found no HMRC guidance on individual products, so check the issuer’s UK tax information. For the note-specific detail, see ETP Insider’s guide to how crypto ETNs are taxed in the UK.

Crypto shares. Coinbase, Strategy and bitcoin miners are ordinary listed companies. Their shares follow normal rules: CGT with share-matching, and Income Tax on dividends above the £500 allowance. The Budget 2025 annex sets 2026/27 dividend rates at 10.75%, 35.75% and 39.35%. Listed shares like these can generally sit in a stocks and shares ISA. Our ETN vs ETF guide compares the wrappers.

What records should you keep? #

HMRC’s guidance asks you to record, for each transaction: the token type, disposal date, tokens disposed of and left, sterling value, bank statements and your pooled costs before and after. Exchange reports are not tax calculations and will not track pooled costs, so keep your own records. Crypto tax software can import exchange and wallet histories and apply the matching rules, but check its output. Keep records for at least a year after the Self Assessment deadline, longer if you filed late or HMRC opens a check (gov.uk).

FAQ #

Do you pay tax on crypto in the UK if you don’t sell? Holding is not taxed. But swapping, spending or gifting counts as a disposal, and staking or mining rewards are taxed as income when received.

What is the crypto tax-free allowance in the UK? £3,000 of total capital gains for 2026/27, shared across all your assets. Crypto income counts towards a separate £1,000 trading and miscellaneous income allowance.

What is the capital gains tax rate on crypto in the UK? For 2026/27, 18% on gains within the basic rate band and 24% above it.

Is moving crypto between my own wallets taxable? No, because you keep beneficial ownership. Any fee paid in tokens is a small disposal, though.

How does HMRC know about my crypto? UK platforms have collected users’ tax details since 1 Jan 2026, with first reports due by 31 May 2027. HMRC also sends crypto users letters, emails and texts.

Are crypto ETNs in an ISA tax-free? Yes. Since 6 Apr 2026, though, new purchases must go into an Innovative Finance ISA. Notes held in a stocks and shares ISA before then can stay.

This is general information, not tax advice. Rules change and your position depends on your circumstances, so check HMRC guidance or a qualified adviser.

Not financial advice. Capital at risk. Crypto is highly volatile and crypto ETNs carry issuer risk. UK tax and access rules can change — check with HMRC guidance, your broker and a qualified adviser.