How Crypto Is Taxed in the UK: The Complete 2026 Overview

The short answer: crypto is taxed two ways in the UK

HMRC taxes cryptocurrency in two distinct ways depending on how the event arises. Disposals (selling, swapping one token for another, spending crypto on goods or services, or gifting crypto to anyone other than a spouse or civil partner) are Capital Gains Tax events. Earned tokens (mining rewards, staking receipts, airdrops given in return for something, and salary paid in crypto) are income tax events on receipt. Most individual holders are investors under HMRC's analysis, so CGT is the primary tax, but both tracks apply simultaneously and interact: the value you pay income tax on at receipt becomes your CGT base cost for the later disposal. HMRC's overview of cryptoasset taxation is the authoritative starting point.

Every taxable crypto event, at a glance

The table below maps each event type to the tax it triggers. Each row links to the deep-dive that covers the mechanics; this page is the map, not the manual.

Capital Gains Tax: the rate you actually pay, and the £3,000 allowance

CGT on cryptoassets is charged at 18% on the portion of your gain that falls within your remaining basic-rate income tax band, and 24% on any gain above that boundary. Higher and additional-rate taxpayers pay 24% on the whole gain. The basic-rate band ceiling for 2026/27 is £37,700 of taxable income. Whether the 18% rate applies at all depends on how much of that band your employment or other income has already used.

The CGT annual exempt amount is £3,000, frozen for 2026/27. Gains up to that figure in the tax year are tax-free; gains above it are chargeable at the rates above. Because every crypto-to-crypto swap counts as a separate disposal, active holders often exhaust the £3,000 allowance on a handful of transactions before they ever sell to fiat.

For a worked estimate of your position, use the crypto CGT estimator (scenario tool, pool-simplified, same-day and 30-day matching out of scope: state your situation and we will assess the complexity). For planning options, including using a spouse's allowance and timing disposals across tax years, see CGT planning for crypto.

When crypto is income instead: mining, staking, airdrops, salary in tokens

Mining rewards are taxable as miscellaneous income (or trading income if the activity is organised enough to amount to a trade) at their sterling value on the date received. That value also becomes the CGT base cost for the later disposal. The £1,000 trading and miscellaneous income allowance can shelter small mining receipts from income tax, but it does not remove CGT on the later sale. See the full mechanics in crypto mining tax and the £1,000 allowance.

Staking rewards follow the same receipt-then-CGT two-step: income tax on the value received, then CGT on the gain when you eventually dispose of the tokens. The classification of the receipt depends on the degree of activity and organisation. Full mechanics in staking rewards tax: the two-step.

Airdrops are income only if received in return for something (a service, or an expectation of action). Genuinely unsolicited airdrops for nothing are not income; they enter CGT at their acquisition value on receipt. Use the staking and mining guide above for the income classification analysis.

Salary paid in crypto tokens is taxable as earnings if the tokens are readily convertible assets, with PAYE and National Insurance applied by the employer at the point of payment. The full PAYE and NIC mechanics are covered in paying staff in crypto: PAYE and NIC.

The events people miss: swaps, spending, gifting, DeFi deposits

Crypto-to-crypto swaps are disposals at the sterling market value of the token you gave up at the moment of the swap. Swapping ETH for SOL is as much a disposal as selling to pounds. The mechanics, including how to value the disposal and calculate the gain, are in crypto-to-crypto swaps are disposals.

Spending crypto on goods or services is a disposal at the sterling value of what you received. Buying a laptop with Bitcoin creates a CGT event on that day.

Gifting crypto to anyone other than a spouse or civil partner is a disposal at market value on the date of the gift. Transfers between spouses or civil partners are no-gain/no-loss; the receiving spouse inherits your base cost, which can be a legitimate planning lever for using both annual exempt amounts and basic-rate bands.

DeFi deposits and liquidity pool entries: under HMRC's current analysis, many DeFi deposits are themselves disposals where beneficial ownership of the tokens transfers to the protocol. This is the most under-reported event class in DIY returns. The position is framed as HMRC's current view, not settled law, because the legislative fix consulted on in 2023 has not been enacted. Full analysis in DeFi lending and liquidity pool disposals.

What you have to file, and by when

Crypto gains and income are reported through Self Assessment. If 2026/27 is the first year you had reportable crypto activity, you must register by 5 October 2027. The SA108 capital gains pages now include dedicated cryptoasset entries.

Reporting is required even when no tax is due: where your total disposal proceeds in the year exceed the reporting threshold, you must include those disposals in your return. The threshold figure is set by HMRC and changes; check the reporting page for the current figure rather than relying on memory. If you are unsure whether you have crossed it, the safest course is to report.

For the timing detail on payment deadlines and the interaction between CGT and income tax self-assessment, see the dedicated guide to when you pay tax on crypto.

HMRC can increasingly see your activity: the CARF countdown

From 1 January 2026, UK cryptoasset platforms are required to collect user and transaction data under the Cryptoasset Reporting Framework (CARF). The first report to HMRC covering the 2026 calendar year is due between 1 January 2027 and 31 May 2027, with annual reporting by 31 May each year thereafter.

This is not speculative: the collection obligation is live now. The era of "HMRC cannot see my exchange activity" is formally over. HMRC does not yet hold full historic data from CARF (the first data will cover calendar year 2026), but it already acquires exchange data through other routes and has been running a crypto-specific nudge-letter programme for several years. The full CARF mechanics and what the data covers are in CARF crypto reporting 2026 explained.

If you have undisclosed gains or income from prior years, a voluntary disclosure before HMRC contacts you carries the lowest possible penalties. HMRC's dedicated cryptoasset disclosure service covers between 4 years (reasonable care), 6 years (careless) and 20 years (deliberate) of past activity. If you have received a nudge letter, see HMRC crypto nudge letter: what to do.

Sources: collecting cryptoasset user and transaction data and reporting cryptoasset user and transaction data.

Where to go next

This page is the map. Each spoke below covers the mechanics in full.

By tax event

• Crypto-to-crypto swaps are disposals · swap valuation, the cost-basis trap
• Same-day and 30-day matching: worked example · the ordering rules that override the s104 pool
• Staking rewards tax: the two-step · income on receipt, CGT on disposal
• Crypto mining tax and the £1,000 allowance · miscellaneous income, the allowance limit
• DeFi lending and liquidity pool disposals · HMRC's current view, not settled law
• NFT tax: income vs CGT · creator vs investor distinction
• Lost crypto, exchange collapse and negligible value claims · what is and is not a relievable loss

By compliance need

• CARF crypto reporting 2026 explained · the data HMRC will receive and when
• HMRC crypto nudge letter: what to do · how to respond and what to disclose
• HMRC disclosure service for crypto · voluntary unprompted disclosure, penalty reduction
• Crypto Self Assessment · filing your return with crypto entries correctly

By situation

• Crypto investors · CGT planning, loss recovery, disposal timing
• Day traders and active traders · high-frequency disposal records, the investor-vs-trader question
• DeFi and staking holders · protocol-by-protocol complexity, HMRC's unsettled positions
• Miners · income classification, the £1,000 allowance, equipment costs
• Businesses holding crypto · Corporation Tax, no CGT annual exempt amount

Tools

• Crypto CGT estimator · scenario tool for basic disposal estimates
• Investor vs trader status checker · indicative badges-of-trade assessment
• Crypto disclosure estimator · indicative years and penalty band for a voluntary disclosure
• Staking and mining income estimator · indicative income-tax exposure on earned tokens

Research

• UK Crypto Tax Compliance Index · UK ownership levels, the CARF reporting timeline, and current CGT and disclosure parameters

For a position specific to your portfolio, speak to the firm directly. Use the contact form to describe your situation and we will assess the complexity.