Swaps counted as zero
Every crypto-to-crypto swap is a taxable disposal at the sterling market value at the moment of the exchange. “I never cashed out to pounds” is not a defence. Many DIY returns omit hundreds of swap events entirely.
CGT on disposals and swaps, HMRC disclosure and nudge letters, staking and mining income, DeFi, NFTs and businesses holding or accepting crypto. CARF reporting begins in early 2027. We work exclusively on cryptoasset tax.
Most crypto holders are not tax professionals. The rules are genuinely complex: every swap is a disposal, US software applies the wrong pooling method, DeFi protocol interactions may themselves be disposals (under HMRC's current view, not settled law), and unreported years carry a 4-to-20-year look-back window. We handle the technical side so you can manage the position with confidence.
The rules that apply to a long-term investor differ materially from those facing a day trader, a DeFi participant, or a company treasury. Choose your situation for sector-specific guidance.
CGT on disposals, s104 pooling errors, swaps you did not know were taxable, and unclaimed loss years.
Day tradersHigh-frequency disposal history, same-day and 30-day matching rules, and the income-tax risk of a trading-status finding.
DeFi and stakingLiquidity pool entries, lending protocol deposits, and staking rewards: HMRC's current view, not settled law, applied to your position.
NFT creators and flippersWhether NFT sales are trading income or CGT depends on activity and purpose. We assess your facts, not a generic rule.
MinersMining rewards taxed on receipt as income (miscellaneous or trading), then CGT on disposal. The £1,000 allowance shelters income only, not the later gain.
Businesses holding or accepting cryptoCorporation Tax on disposals, no CGT annual exempt amount, crypto payroll NIC obligations, and accounting measurement for token holdings.
HMRC runs a dedicated cryptoasset disclosure service for unpaid tax on crypto. An unprompted voluntary disclosure secures the lowest penalty band. The look-back window is 4 years (reasonable care), 6 years (careless), or 20 years (deliberate).
Under the Cryptoasset Reporting Framework (CARF), UK platforms began collecting user and transaction data from 1 January 2026. The first report to HMRC is due between 1 January 2027 and 31 May 2027, covering the 2026 calendar year. Annual reporting follows by 31 May each year thereafter. The position that exchange data is invisible to HMRC is over.
Respond before the deadline. A nudge letter is not an assessment, but ignoring it converts an unprompted disclosure into a prompted one, increasing penalties.
We assess the years in scope by behaviour band, calculate the liability including interest, and manage the disclosure through HMRC's service.
We audit the full transaction history, apply correct s104 pooling, identify unclaimed losses, and produce a defensible liability figure.
Platforms covering 2026 will report to HMRC from January 2027. Voluntary disclosure before that window closes is materially better than waiting.
Every crypto-to-crypto swap is a taxable disposal at the sterling market value at the moment of the exchange. “I never cashed out to pounds” is not a defence. Many DIY returns omit hundreds of swap events entirely.
UK individuals use s104 pooling at average cost, with same-day and 30-day override rules. FIFO, LIFO, and specific-identification (defaults in Koinly, CTC and other US-built tools) are wrong for UK purposes. The mismatch can produce materially incorrect CGT figures in either direction.
Capital losses must be claimed within four years of the end of the tax year they arose in. Unreported loss years from bear markets or rug pulls are recoverable value. We audit the full history, not just the current year.
Mining and staking rewards are taxable as income on receipt, at the sterling value at that moment. That receipt value also becomes the CGT base cost for the later disposal. The £1,000 trading and miscellaneous income allowance shelters small receipts from income tax only; it does not reduce CGT on the disposal.
Five specialist service areas covering the full crypto tax compliance picture.
Unprompted voluntary disclosures through HMRC's dedicated service, covering all behaviour bands and look-back windows. Nudge letter responses managed end-to-end.
Full Self Assessment preparation including SA108 capital gains pages with correct s104 pooling, swap disposals, staking income and loss claims.
We review software-generated reports, correct pooling method errors (FIFO to s104), identify missing wallets and exchanges, and produce a defensible UK figure.
Disposal sequencing, spouse and civil partner transfers (no-gain no-loss, HP 7), AEA utilisation (£3,000, 2026/27), and loss crystallisation before year-end.
Badges-of-trade analysis applied to your transaction history. Trader status typically means income tax up to 45% plus Class 4 NIC versus 24% CGT. We assess the risk on your facts.
All four calculators are scenario and estimate tools. They state their simplifications openly (the same-day and 30-day matching rules are out of scope for any stateless web tool) and end at “your situation has X complexity, speak to us”. They never produce a filing-ready figure. No sign-up, no data stored.
Estimate your capital gains tax position from a disposal history. Applies s104 pooling and the £3,000 AEA. Does not model same-day or 30-day rules (state your simplifications openly).
Estimate the tax and potential penalty exposure from unreported crypto gains, by behaviour band (reasonable care, careless, deliberate) and look-back window.
Work through the badges-of-trade analysis for cryptoassets. Almost everyone is an investor; trader treatment typically means income tax up to 45% plus Class 4 NIC versus 24% CGT.
Estimate the income tax position on staking or mining receipts and the CGT base cost carried into the later disposal, including the £1,000 allowance limit.
HMRC publishes no crypto-specific tax gap, so we do not invent one. The index sets out what can be verified: how many UK adults hold cryptoassets, on FCA consumer research; the CARF reporting timeline counting down to the 31 May 2027 deadline; and the CGT rates and disclosure windows that apply when that data reaches HMRC. Every figure is cited to a primary source and refreshed as those sources update. It is a compliance-awareness resource, not a tax estimate.
s104 pooling with same-day and 30-day matching, DeFi disposal analysis, the badges-of-trade test for day-trading, the correct income-then-CGT two-step for staking and mining, and the economics of HMRC disclosure: a generalist encounters these infrequently. We work with them every week.
| Area | Our approach |
|---|---|
| s104 pooling and matching rules | We apply the correct UK methodology: s104 average-cost pool per token, with same-day acquisitions matched first, then acquisitions in the following 30 days. We check whether US-software exports have applied FIFO, LIFO or specific-ID and correct them. |
| HMRC disclosure service | Where gains are unreported, we use HMRC's dedicated cryptoasset disclosure service. An unprompted voluntary disclosure secures the lowest penalty band. The look-back window is 4 years (reasonable care), 6 years (careless), or 20 years (deliberate). |
| DeFi and liquidity pools | Under HMRC's current analysis, many DeFi deposits and liquidity-pool entries are themselves disposals. This is HMRC's current view, not settled law; the 2023 consultation was not enacted. We apply the published analysis, not a guess. |
| Trader vs investor status | Trader status is almost always a worse outcome: trading profits face income tax up to 45% plus Class 4 NIC (6% between £12,570 and £50,270, 2% above), versus a maximum 24% CGT. We assess the badges of trade on your actual facts. |
| Staking, mining and airdrops | Each category has its own income-tax and CGT two-step. Unsolicited airdrops enter CGT at acquisition value; airdrops received in return for something are income. Forks split the base cost between old and new tokens; they are not free income. |
| Business and company crypto | Companies have no CGT annual exempt amount. Disposals fall within Corporation Tax (main rate 25% above £250,000, small profits rate 19% up to £50,000). Token accounting measurement is fact-specific; we advise on the principle and route complex cases. |
Composite accounts based on patterns across our client base. Names, amounts and specific details anonymised. The compliance situations described are real.
“I had run a Koinly report and assumed the figure was correct. When we reviewed the history, Koinly had used FIFO for a large ETH disposal in a year I had been buying frequently. The corrected s104 calculation reduced my CGT liability by a material amount. I had been about to overpay.”
“I received an HMRC nudge letter about cryptoasset income. I did not ignore it. We made an unprompted voluntary disclosure covering four tax years, declared the gains and the income from staking, and settled the position. The letter had a specific deadline and the firm helped us respond well within it.”
“We had been treating every DeFi protocol interaction as outside scope because we thought only cash-outs were taxable. By the time we engaged a specialist, there were several years of unreported disposal events. The position was more complex than expected, but it was manageable because we acted before CARF data reaches HMRC.”
Tell us about your situation. We will explain what you need and what the position looks like, in plain English, with no obligation.
Articles and guides on CGT and disposals, HMRC disclosure, staking and mining income, DeFi, NFTs, trader status and businesses holding crypto. Written for people managing their own tax position, not for accountants.