As we approach the end of the 2025/26 tax year, crypto investors in the UK should be reviewing their portfolios and considering tax-saving opportunities. With the Capital Gains Tax allowance at just £3,000 and CGT rates at 18-24%, proactive planning can make a significant difference to your tax bill.
In this guide, we'll walk through practical strategies you can use before 5th April 2026 to optimise your crypto tax position.
Key tax facts for 2025/26
Before diving into strategies, here's what you need to know about the current tax year. The tax year runs from 6 April 2025 to 5 April 2026. The CGT allowance is £3,000. Basic rate taxpayers pay 18% CGT, while higher rate taxpayers pay 24%. The higher rate threshold is £50,270. The filing deadline is 31 January 2027.
Unlike the previous tax year (2024/25), there is no split-year complication for CGT rates in 2025/26. The 18% and 24% rates apply to all disposals throughout the year.
How the reduced CGT allowance affects crypto investors
The CGT allowance has dropped significantly over recent years. In 2022/23 it was £12,300. In 2023/24 it dropped to £6,000. For 2024/25 and 2025/26, it's just £3,000.
In 2022/23, you could realise over £12,000 in crypto profits tax-free. Now, only £3,000 is exempt. For active traders who previously stayed comfortably within the allowance, this means many more people now have a tax liability to manage.
Smart tax strategies before 5 April 2026
With the deadline approaching, here are actions to consider before the tax year ends.
1. Use your £3,000 CGT allowance – before you lose it
Each tax year, you can realise up to £3,000 in capital gains completely tax-free. This allowance doesn't roll over – if you don't use it, you lose it.
Practical tip: If you're sitting on unrealised gains, consider selling enough crypto to use your full £3,000 allowance. You can immediately repurchase the same assets if you wish (though be aware of the 30-day "bed and breakfast" rule).
2. Offset gains with losses
If you have crypto that's fallen in value, you can sell it to realise a capital loss. These losses can be offset against your gains to reduce your tax bill.
- Current-year losses must be used first – they're automatically deducted from your gains.
- Losses from previous years can be carried forward indefinitely.
- Losses must be reported to HMRC within 4 years to be carried forward.
3. Watch out for the bed and breakfast rule
If you sell crypto to crystallise a gain or loss, you cannot repurchase the same asset within 30 days without affecting your tax calculation. If you buy back within 30 days, the disposal is matched with the repurchase rather than your original cost basis.
4. Transfer crypto to your spouse
Transfers between spouses and civil partners are not taxable events. Gift crypto to your spouse, who can then sell it using their own £3,000 CGT allowance. This effectively doubles your household's tax-free gains to £6,000 per year.
5. Plan disposals around your income tax bracket
Your CGT rate depends on your income tax band. Basic rate taxpayers (up to £50,270) pay 18%, while higher rate taxpayers (over £50,270) pay 24%. If you're close to the threshold, the timing of your crypto sales matters.
6. Consider your overall portfolio position
Before the tax year ends, review your entire crypto portfolio. Could you crystallise some gains tax-free? Are there losses worth realising? Have you reported all historic losses to HMRC?
How Recap helps you plan before year-end
Understanding your tax position before 5th April is crucial. Recap's dashboard gives you real-time insights into your portfolio - track realised gains, view unrealised gains and losses, model scenarios, stay compliant, and collaborate with your accountant.
Key dates for 2025/26
6 April 2025 - Start of tax year. 5 April 2026 - End of tax year (last day for year-end planning). 5 October 2026 - Self Assessment registration deadline. 31 October 2026 - Paper return deadline. 31 January 2027 - Online return and payment deadline.
Final thoughts: plan now, save tax later
The UK tax landscape for crypto continues to tighten. With the CGT allowance at just £3,000 and rates at 18-24%, tax planning is more important than ever.
The good news is that with proper planning – using your allowances, strategically timing sales, offsetting losses, and coordinating with your spouse – you can legitimately reduce your tax bill.
Don't wait until after 5th April when it's too late. Review your portfolio now and make the most of the tax-saving opportunities available before the 2025/26 tax year ends.
