Crypto Taxation in United Kingdom

How does HMRC classify cryptocurrency for tax purposes?

HMRC does not regard cryptoassets as currency or money. Under the Cryptoassets Manual (CRYPTO10100), exchange tokens such as Bitcoin and Ether are treated as chargeable assets for Capital Gains Tax (CGT) purposes -- the same legal framework that applies to shares, land, and other property [HMRC-CRYPTO]. This classification means that every disposal of a cryptoasset is a CGT event computed under the Taxation of Chargeable Gains Act 1992 (TCGA 1992). There is no bespoke crypto-tax legislation in the UK; the existing CGT and income-tax code applies by analogy, a position HMRC has maintained since its first Cryptoassets Taskforce report in 2018 and carried through the current manual, last updated November 2025 [HMRC-CRYPTO].

See also: United Kingdom country overview for the broader UK tax landscape.

What events are taxable disposals of cryptocurrency?

A disposal occurs when an individual sells crypto for fiat currency (pounds, dollars, euros, etc.), exchanges one cryptoasset for another, uses crypto to pay for goods or services, or gifts crypto to any person other than a spouse or civil partner [HMRC-CGT-CHECK]. Each of those events fixes a GBP market value at the disposal date; the gain or loss equals proceeds minus allowable base cost. A gift to a non-spouse is treated as a disposal at open-market value under TCGA 1992 s.17; a gift between spouses or civil partners is no-gain-no-loss under s.58 and does not trigger CGT. Wallet-to-wallet transfers between wallets belonging to the same beneficial owner are not disposals. The purchase of cryptocurrency with fiat is an acquisition, not a disposal, and produces no immediate CGT [HMRC-CGT-CHECK].

Mining, staking, and qualifying airdrop receipts are income events at the point of receipt -- not CGT disposals. They are taxed at marginal income-tax rates (20%, 40%, or 45% depending on total income) and the sterling value on the day of receipt becomes the base cost for any subsequent CGT-bearing disposal [HMRC-STAKING, HMRC-MINING].

UK pooling rules: same-day, 30-day bed-and-breakfasting, and Section 104

The UK CGT pooling regime under TCGA 1992 ss.104-106A is the most distinctive feature of UK crypto taxation. When part of a holding is disposed of, the disposal is matched to acquisitions in a mandatory three-step priority order:

1. Same-day rule (TCGA 1992 s.105): acquisitions and disposals of the same cryptoasset on the same calendar day are matched first. Matched tokens do not enter the pool [HMRC-POOLING].
2. 30-day rule (TCGA 1992 s.106A): any remaining disposals are next matched against acquisitions of the same cryptoasset made within the 30 days following the disposal date. This prevents the artificial crystallisation of a loss followed by immediate re-acquisition (bed-and-breakfasting) [HMRC-POOLING].
3. Section 104 pool: all unmatched tokens of the same cryptoasset are treated as a single pooled asset with one aggregate base cost. The weighted-average cost per token is updated each time an acquisition or disposal is applied to the pool.

One pool exists per cryptoasset type regardless of how many wallets or exchanges hold the tokens. Pool calculations are impractical to perform manually across high-volume trading histories; HMRC accepts calculations produced by recognised crypto-tax software (Koinly, Recap, CryptoTaxCalculator) provided the underlying transaction data is reconciled [HMRC-POOLING].

CGT rates and allowances -- 2024/25 and 2025/26

The Autumn Budget 2024 raised CGT rates on non-residential assets with effect from 30 October 2024, amending TCGA 1992 ss.1H and 1I via Finance Act 2025 [HMRC-RATES]. The 2024/25 tax year is a split year: disposals before 30 October 2024 are charged at the old rates; disposals on or after that date at the new rates.

The annual exempt amount (AEA) -- the amount of net chargeable gains sheltered from CGT -- was permanently reduced to GBP 3,000 for individuals from 6 April 2024 onwards [HMRC-RATES]. The basic-rate band threshold for income tax is GBP 37,700 in 2025/26; unused income-tax basic-rate band absorbs crypto gains at 18% before the 24% rate applies to gains above that band [HMRC-RATES].

How are staking, mining, and airdrops taxed?

HMRC's Cryptoassets Manual sets out distinct income-tax treatment for each receipt type [HMRC-STAKING, HMRC-MINING, HMRC-AIRDROPS]:

• Staking rewards: the GBP fair-market value on the day of receipt is miscellaneous income (or trading income if the activity constitutes a trade on HMRC's criteria of degree of activity, organisation, risk, and commerciality). The receipt-day value becomes the base cost for subsequent CGT on disposal [HMRC-STAKING].
• Mining rewards: same trade-vs-miscellaneous-income analysis as staking. If occasional and small-scale, receipts are miscellaneous income reported on SA101. If regular, organised, and commercial, profits are self-employment income on SA103 subject to income tax and Class 4 National Insurance Contributions [HMRC-MINING].
• Airdrops: tokens received without performing any service and not in connection with a trade are outside the scope of income tax at receipt; however, the base cost is GBP nil, so the full sale proceeds become a chargeable gain on disposal. Where an airdrop is received in return for a service or as part of a trading activity, the receipt-day value is miscellaneous or trading income [HMRC-AIRDROPS].

In all three cases the two-tax structure applies: income tax at the point of receipt, then CGT on the growth (or decline) between the receipt-day value and the eventual disposal proceeds.

Reporting, deadlines, and the Cryptoasset Reporting Framework

Crypto CGT is reported on the SA108 Capital Gains Summary supplementary pages of the UK Self Assessment return. A return is required where total disposal proceeds in a tax year exceed GBP 50,000, or where net gains exceed the GBP 3,000 AEA [HMRC-CGT-CHECK, HMRC-RATES]. From the 2024/25 tax year (returns filed by 31 January 2026) a dedicated cryptoasset section within SA108 separates crypto disposals from other chargeable gains. Income from staking, mining, or qualifying airdrops flows through SA101 Additional Information or SA103 Self-Employment pages.

For the split tax year 2024/25, the return requires separate identification of gains arising before and after 30 October 2024 to apply the correct rate [HMRC-RATES].

The Cryptoasset Reporting Framework (CARF), effective 1 January 2026, requires UK-resident crypto asset service providers to collect customer KYC data and report transaction information to HMRC annually, mirroring the Common Reporting Standard for traditional financial accounts. HMRC's ongoing nudge-letter campaign -- identifying crypto holders via exchange data -- previews the compliance environment under CARF. Individuals with undisclosed crypto income or gains can use HMRC's voluntary disclosure service to regularise their position before HMRC opens a formal enquiry [HMRC-DISCLOSE].

Consult a qualified UK tax practitioner registered with HMRC or a recognised professional body before acting on the information summarised here. Find a UK crypto-specialist tax professional in the TaxPros Rated directory.