{"id":443427,"date":"2022-03-24T13:13:30","date_gmt":"2022-03-24T13:13:30","guid":{"rendered":"https:\/\/www.finder.com\/uk\/?p=443427"},"modified":"2025-01-09T02:33:31","modified_gmt":"2025-01-09T02:33:31","slug":"crypto-tax-uk-rules","status":"publish","type":"post","link":"https:\/\/www.finder.com\/uk\/crypto-banking\/crypto-tax-uk-rules","title":{"rendered":"Crypto tax rules in the UK explained"},"content":{"rendered":"

If you’ve made big gains on your crypto, the taxman may want a slice. In this guide, we’ve set out the latest rules in plain language, and answered common questions such as “Can you put crypto in an ISA?” (spoiler alert: sadly, no).<\/p>

How much tax do you pay on crypto in the UK?<\/h3>

As with other income or “capital gains<\/a>” \u2013 profits from selling an asset for more than you paid for it \u2013 you’ll have to pay tax on your crypto if you go over your tax-free annual allowance. The tax you’ll pay depends on several factors, including the type of crypto gain or income, and other gains you’ve made in the same tax year. For example, if you made a total of more than \u00a33,000 in capital gains \u2013 including profits from selling crypto \u2013 in the tax year 2026\/2027, you’ll need to pay tax.<\/p>

Below is a summary of the rules for England, Wales and Northern Ireland \u2013 Scotland has different bands for income tax but the same bands for capital gains tax. These apply to the 2026\/2027 tax year.<\/p>
Trigger for tax<\/th>Type of tax<\/th>Allowance 2026\/2027<\/th>Tax tiers<\/th>Summary of rules<\/th><\/tr><\/thead>
You sell\/exchange\/give away crypto or use it to pay for a service<\/td>Capital gains<\/td>\u00a33,000<\/td>10% for basic taxpayers; 24% for higher-rate taxpayers<\/td>Capital gains tax due if total capital gains exceed annual allowance in the tax year. The capital gain is the difference between selling and buying price (some exceptions)<\/td><\/tr>
You get paid in the form of crypto<\/td>Income<\/td>\u00a312,570<\/td>Normal income tax rates apply \u2013 20%, 40% or 45% (not Scotland)<\/td>Normal income tax and national insurance rules apply for income<\/td><\/tr>
<\/td>National insurance<\/td>\u00a312,570<\/td>9% or 2% depending on earnings<\/td>You’ll owe class 1 national insurance. The income is added to any other income to work out your tax rate<\/td><\/tr>
You get over \u00a31,000 income from crypto mining and staking<\/td>Income<\/td>\u00a312,570<\/td>Normal income tax rates apply \u2013 20%, 40% or 45%<\/td>You’ll need to register as self-employed and complete a tax return. The income is added to any other income to work out your tax rate<\/td><\/tr>
<\/td>National insurance<\/td>\u00a36,725<\/td>9% or 2% depending on earnings<\/td>You’ll owe class 2 and class 4 national insurance on income received as a self-employed person<\/td><\/tr><\/tbody><\/table>

Working out the tax due on your crypto can be complex and that’s where crypto tax software<\/a> comes in. Crypto tax software integrates with the exchange you use to buy and sell your cryptocurrency. It automatically grabs the details of your transactions and records them for your tax records. Software can also help with preparing your tax forms at the end of the tax year.<\/p>

\n
\n

\n \n \n \n \n <\/svg>\n <\/span>\n Crypto in your tax return: 2024 changes<\/span>\n <\/h4>\n
\n

In 2023, the government announced changes to self assessment tax return forms starting in the tax year 2024-25. Under the changes, amounts of cryptoassets must be identified separately from fiat money. The Treasury estimates this will bring in an extra \u00a310 million a year.<\/p>

James Carn, associate director in the private client tax team at wealth and accountancy services firm Evelyn Partners, said “Taxpayers should be mindful that there may be an additional degree of scrutiny from HMRC where transactions in cryptoassets are reported on their tax returns. The measures should only affect taxpayers with reportable capital gains or capital losses that they wish to claim. There are no fundamental changes in terms of gains being reportable or taxable.”<\/p>\n <\/div>\n <\/div>\n<\/div>\n

Crypto capital gains tax rules<\/h3>

Capital gains tax can be due on cryptoassets when you sell them for more than the purchase price and your total gains for that tax year \u2013 including from other sources such as selling shares \u2013 are above your tax-free allowance. We explain below what triggers the need to pay capital gains tax and how to calculate the gain.<\/p>

What triggers capital gains tax?<\/h4>

You may need to pay capital gains tax if:<\/p>