TaxOnCryptoCrypto Tax UK Guide 2026: HMRC Rules, CGT Rates & CARF
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HMRC treats crypto as property, so selling, swapping, spending or gifting it can trigger Capital Gains Tax. For 2026/27 you pay 18% within the basic-rate band and 24% above it on gains over the £3,000 annual exempt amount, with costs worked out by section 104 pooling and the same-day and 30-day rules. Crypto from mining, staking or work is income. UK platforms have reported to HMRC under CARF since 1 January 2026.
If you hold, trade, or earn cryptocurrency in the United Kingdom, HMRC expects you to report it. The rules tightened significantly in 2024 and continue to evolve in 2026 — including new automatic reporting requirements from UK exchanges. Here is what every UK crypto holder needs to know.
HMRC treats crypto as property, not currency
This is the single most important fact. To HMRC, your Bitcoin or Ethereum is a chargeable asset, similar to shares. That means disposing of crypto — selling it, swapping it for another coin, spending it, or gifting it (with limited exceptions) — is a taxable event that may trigger Capital Gains Tax (CGT).
The 2026 CGT rates (post-October 2024 change)
HMRC changed crypto CGT rates significantly on 30 October 2024, and they remain in effect for 2026:
- 18% for basic-rate taxpayers (income up to £50,270)
- 24% for higher and additional-rate taxpayers (income above £50,270)
If your gain straddles the basic-rate band, part is taxed at 18% and the rest at 24% — based on how much of the basic-rate band your income has not already used up.
The £3,000 annual allowance
You only pay CGT on gains above £3,000 per tax year (down from £6,000 in 2023/24 and £12,300 before that). If your total taxable gains for the year are under £3,000, you owe no CGT — though you may still need to report them.
What counts as a disposal
Disposals you may not realise are taxable include:
- Selling crypto for GBP (or any fiat)
- Swapping one crypto for another (BTC → ETH is a disposal)
- Using crypto to pay for goods or services
- Gifting crypto (with some exceptions for spouses/civil partners)
Crypto as income (not CGT)
Sometimes crypto is treated as ordinary income, not a capital gain. This includes:
- Mining — whether as a hobby or trade depends on scale
- Staking rewards — generally miscellaneous or trading income at fair market value when received
- Airdrops — income if received for any action; not income if truly unsolicited (rules are nuanced)
- Crypto received as payment for work — employment or self-employment income
Income is taxed at your normal income tax band: 0% to £12,570, then 20%, 40%, 45%.
Section 104 pooling (cost basis)
The UK uses a unique cost-basis method called Section 104 pooling. All of your holdings of the same asset (e.g. all your Bitcoin) form one pool, with a single average cost. When you sell, you use that pooled cost. There are also “same-day” and “30-day” rules that override the pool in certain scenarios — HMRC's official guidance covers the details, but in practice, dedicated UK crypto tax software handles this for you.
Reporting and deadlines
- Tax year: 6 April to 5 April
- Online return deadline: 31 January following the tax year end
- Paper return deadline: 31 October
- Report crypto gains on the capital gains pages of your Self Assessment return (SA108). HMRC's “Report Capital Gains Tax on UK property” service is only for property, not crypto.
CARF: automatic reporting from January 2026
The UK joined the international Crypto-Asset Reporting Framework (CARF). From 1 January 2026, UK-based crypto exchanges and service providers automatically report user transactions to HMRC. In practice, this means HMRC will increasingly know about your crypto activity whether you report it or not — making accurate self-reporting more important than ever.
Frequently asked questions
Do I need to report crypto gains under £3,000?
Sometimes. You must report if your total proceeds from disposals were more than £50,000, even when the gain is under the allowance. Report losses too, so you can use them later.
When is the deadline to report UK crypto tax?
For the 2026/27 tax year, which ends on 5 April 2027, the online Self Assessment deadline is 31 January 2028 and the paper deadline is 31 October 2027.
What is the 30-day rule for crypto?
If you sell tokens and buy the same type back within 30 days, HMRC matches the sale with the new purchase instead of your pool's average cost. It stops people selling for a quick loss and buying straight back.
Are staking rewards taxed as income in the UK?
Generally yes, at their sterling value when you receive them, unless the activity amounts to a trade. Selling the tokens later is a separate disposal for Capital Gains Tax.
Bottom line
Most UK crypto investors pay 18% or 24% CGT on gains above £3,000 per year. Crypto earned through work, mining, staking, or airdrops is generally income at your marginal rate. With CARF reporting starting in 2026, the era of crypto being invisible to HMRC is over. Use the calculator below to estimate your position, then confirm with a chartered accountant or tax adviser before filing.
This guide is general information for the 2026 tax year, not tax, legal or financial advice. Tax rules change often, so confirm your situation with a qualified professional before you file. Spotted an error? Email taxoncrypto@gmail.com.