by Asim Abbas
11 November 2026 
Crypto tax in the UK: what HMRC expects from you
Crypto tax in the UK: what HMRC expects from you
HMRC treats crypto as property, not currency. That means selling, swapping or spending it can trigger Capital Gains Tax, while staking and mining can be taxed as income.
- Selling, swapping or spending crypto is a disposal for CGT
- CGT is 18% or 24% after the £3,000 exemption
- Staking and mining are usually taxed as income
- Report if proceeds were over £50,000, even with no gain
From January 2026, UK crypto platforms have been collecting user details under new international reporting rules, so HMRC will have more information than ever.
This guide explains how crypto is taxed, how gains are worked out and what you need to report.
What counts as a disposal?
- Selling crypto for pounds or another currency
- Swapping one token for another, including stablecoins
- Spending crypto on goods or services
- Giving crypto away, except to a spouse or civil partner
Moving crypto between your own wallets isn’t a disposal.
How gains are calculated
HMRC requires matching rules for the cost of tokens you dispose of:
- Same day: matched with tokens bought that day
- 30 days: matched with tokens bought in the next 30 days
- Section 104 pool: otherwise, the average cost of all your holdings
You earn £35,000 and sell crypto for £30,000 that cost £18,000 from your pool. Your gain is £12,000. After the £3,000 exemption, £9,000 is taxable. It all falls within your remaining basic rate band, so CGT is 18%: £1,620.
Crypto tax calculator
CGT on disposals and tax on staking.
Staking, mining and airdrops
Staking rewards and mining income are usually taxed as income when you receive them, at their value in pounds. If it’s on a business scale, it’s trading income. When you later sell those tokens, the value taxed as income becomes their cost for CGT. Airdrops received for doing something are usually income too.
What and when to report
- Report on the SA108 if gains are over £3,000 or total proceeds over £50,000
- The SA108 has separate crypto boxes from 2024/25
- Report staking and mining income on your return
- Claim losses within four years to use against future gains
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Get a fixed-fee quoteCall 0161 531 4179New reporting rules
Under the Cryptoasset Reporting Framework, UK platforms have been collecting customer details since 1 January 2026 and will report them to HMRC. If you’ve not declared crypto gains in earlier years, it’s much better to come forward voluntarily. HMRC’s crypto guidance explains the rules. Our crypto tax returns service reconciles your wallets and exchanges and files for you, and our disclosure team can help with past years.
What should I do next?
Full transaction history.
Or use crypto tax software.
On your 2025/26 return.
We can help with a voluntary disclosure. See our service.
Frequently Asked Questions
Is swapping one crypto for another taxable?
Yes. Swapping tokens is a disposal for Capital Gains Tax, even if you never cash out to pounds.
What is the CGT allowance for crypto?
There’s no separate crypto allowance. The £3,000 annual exempt amount covers all your gains.
Do I pay tax on staking rewards?
Usually yes, as income when you receive them, valued in pounds at that time.
Can I claim crypto losses?
Yes, if you report them within four years. They reduce gains in the same year first, then future years.
Does HMRC know about my crypto?
Increasingly, yes. Exchanges share data with HMRC, and new reporting rules began in 2026.
Need help with this? Wingate Accountants offers fixed-fee online accountancy support across the UK. Call 0161 531 4179 or request a quote at wingateaccountants.co.uk.
About the Author
Stephen Reynold
I’m Stephen Reynold, an accountant at Wingate Accountants. I work with sole traders and small companies, turning tax rules into clear, practical next steps.
