Cryptocurrency has surged in popularity worldwide, and tax authorities are paying close attention to crypto activity. For UK investors, understanding the tax implications of crypto income and capital gains is essential to stay compliant with HMRC.
In this article, we'll guide you through calculating your crypto taxes, including what you need to pay, and highlight key dates and deadlines for filing your return. You'll find the current UK income tax and capital gains tax (CGT) rates for the 2025/26 tax year, along with guidance for filing your 2024/25 return (deadline 31st January 2026).
UK crypto tax rates
In the UK, crypto activity can be subject to capital gains tax and income tax, which are taxed at different rates depending on your total annual earnings.
Generally, capital gains tax applies when you make a profit (or loss) from disposing of a crypto asset, such as selling, trading, gifting, or using it for purchases. These gains are taxed at a rate of either 18% or 24%.
When earning crypto, for example through mining, staking or lending rewards, you'll likely need to pay income tax at a rate of up to 45%.
For a comprehensive overview of how crypto is taxed, refer to our UK crypto tax guide.
UK capital gains tax rates for crypto 2025/26
HMRC is clear that capital gains tax applies to crypto whenever you dispose of an asset. A disposal can include:
- Selling crypto for fiat (cashing out)
- Exchanging one crypto asset for another (for example trading Bitcoin for Ethereum)
- Gifting crypto (with some exceptions)
- Purchasing goods or services using crypto
- DeFi-type activity like staking, lending, liquidity pools or collateralised loans, where beneficial ownership of the tokens is transferred
Capital gains tax allowance
You only pay capital gains tax on gains that exceed the annual tax-free allowance. For the 2025/26 and 2024/25 tax years, this allowance is £3,000.
| Tax Year | CGT Allowance |
|---|---|
| 2025/26 | £3,000 |
| 2024/25 | £3,000 |
| 2023/24 | £6,000 |
| 2022/23 | £12,300 |
If your total capital gains (from crypto and other assets) exceed £3,000, you'll need to pay tax on the amount above this threshold.
Capital gains tax rates
The CGT rate you pay depends on your total taxable income for the year:
| Your Income Level | CGT Rate |
|---|---|
| Basic rate taxpayer (income up to £50,270) | 18% |
| Higher/additional rate taxpayer (income over £50,270) | 24% |
These rates apply to all disposals from 30th October 2024 onwards, following changes announced in the 2024 Autumn Budget.
Example: If you have employment income of £40,000 and capital gains of £13,000 in the 2025/26 tax year, your capital gains tax would be calculated as:
- £0 tax on the first £3,000 (annual allowance)
- 18% on the remaining £10,000 = £1,800 CGT due
If your income was £60,000 (higher rate), you'd pay 24% on the £10,000 = £2,400 CGT due.
How to reduce capital gains tax
While you can't avoid paying tax on genuine gains, there are legitimate strategies to reduce your CGT liability:
- Use your annual allowance – Keep net capital gains below £3,000 by timing disposals carefully
- Offset losses – Capital losses can be deducted from gains in the same tax year
- Spouse transfers – Transferring crypto to a spouse or civil partner is a no-gain, no-loss disposal, allowing you to utilise their CGT allowance
For more strategies, see our guide: Can you avoid paying tax on crypto in the UK?
UK income tax rates for crypto 2025/26
Income tax applies when you receive crypto as earnings. This includes:
- Mining rewards (if not trading)
- Staking rewards
- Airdrops
- Payment for goods or services
- Employment paid in crypto
The rate of income tax depends on your overall income level. The UK follows a progressive tax system:
| Tax Band | Income Range | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 to £50,270 | 20% |
| Higher rate | £50,271 to £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
*Note: The Personal Allowance reduces by £1 for every £2 of income above £100,000.*
These thresholds have been frozen until April 2028.
Scottish income tax rates
If you're a Scottish taxpayer, slightly different income tax bands apply. The starter, basic, intermediate, higher and top rates differ from the rest of the UK. Check the Scottish Government website for current rates.
UK tax deadlines
2025/26 tax year (current)
The 2025/26 tax year runs from 6th April 2025 to 5th April 2026. Key dates:
| Date | Deadline |
|---|---|
| 6th April 2025 | Start of 2025/26 tax year |
| 5th April 2026 | End of 2025/26 tax year |
| 5th October 2026 | Self Assessment registration deadline |
| 31st October 2026 | Paper tax return deadline |
| 31st January 2027 | Online tax return and payment deadline |
2024/25 tax year (filing now)
The 2024/25 tax year ran from 6th April 2024 to 5th April 2025. If you made taxable gains or income during this period, you need to file by 31st January 2026.
Important: The 2024/25 tax year is a "split year" for capital gains tax. The government changed CGT rates mid-year in the Autumn Budget:
| Period | Basic Rate | Higher Rate |
|---|---|---|
| 6 April 2024 – 29 October 2024 | 10% | 20% |
| 30 October 2024 – 5 April 2025 | 18% | 24% |
This means you may need to calculate gains separately for each period. For a detailed explanation, see our guide: A Guide to the 2024/25 Split Tax Year.
How to calculate crypto taxes in the UK
Before you can work out how much crypto tax you owe, you'll need to calculate your net capital gain and net income from crypto.
Calculating your crypto capital gains
Your CGT liability is based on the difference between the acquisition cost (cost basis) and the disposal proceeds. Follow these steps:
- Identify the cost basis – The original purchase price of the crypto asset, including any transaction fees. Make sure to apply HMRC's matching rules (same-day rule, bed and breakfast rule, Section 104 pooling).
- Determine the disposal proceeds – The amount you received from selling, trading, or otherwise disposing of the crypto.
- Calculate the gain or loss – Subtract the cost basis from the disposal proceeds. All calculations must be in pounds sterling.
- Apply the correct CGT rate – Use 18% (basic rate) or 24% (higher rate) based on your income level.
- Deduct your annual allowance – The first £3,000 of gains is tax-free.
Calculating your crypto income
For each income event (mining rewards, staking, etc.), identify the sterling value at the time the crypto was received. Add up all receipts, then deduct any allowable expenses to arrive at your net crypto income for the tax year.
Use our free crypto tax calculator to quickly estimate the capital gains on a single disposal, or get started with our crypto tax software to calculate your income and capital gains across your entire portfolio.
How to file your crypto taxes to HMRC
Once you've calculated your capital gains and income, you can report to HMRC. There are several options:
Self Assessment Tax Return
The most common method for reporting crypto taxes. You can file online or by post.
- Capital gains – Report on the SA100 and Capital Gains Summary (SA108)
- Crypto income – Report as Miscellaneous Income in box 17 of the SA100
Capital Gains Tax real-time service
If you only need to report capital gains (not income), you can use HMRC's Capital Gains Tax service to report and pay immediately through your Government Gateway account.
Use an accountant
If you're unsure about your tax position, consider hiring a crypto-specialist accountant. They can file your Self Assessment on your behalf and provide peace of mind.
Make crypto tax easy with Recap
The hardest part of filing crypto taxes is keeping track of all your transactions and calculating gains correctly. Recap makes this simple.
Connect your exchanges and wallets, and our tax calculator will:
- Identify all taxable transactions
- Apply HMRC's matching rules automatically
- Calculate your capital gains and income
- Generate a tax report ready for Self Assessment
Get started for free and preview your capital gains in minutes.
