UK Crypto Tax Calculator
Calculate your Capital Gains Tax on Bitcoin, Ethereum and other crypto for the 2025/26 tax year. Uses HMRC's same-day, 30-day bed-and-breakfasting, and Section 104 pooling rules to match disposals accurately.
Total Gains
£2,465
Total Losses
£0
Net Gain
£2,465
AEA Used
£3,000
Taxable Gain
£0
Capital Gains Tax
£0
| Net Gain | £2,465.00 |
| Annual Exempt Amount | −£3,000.00 |
| Taxable Gain | £0.00 |
| Total CGT | £0.00 |
| Date | Token | Qty | Proceeds | Cost | Gain/Loss | Match Rule |
|---|---|---|---|---|---|---|
| 2025-11-20 | BTC | 0.25 | £9,980.00 | £7,515.00 | £2,465.00 | Section 104 |
| Token | Quantity | Total Cost | Avg Cost/Unit |
|---|---|---|---|
| BTC | 0.25 | £7,515.00 | £30,060.00 |
How Crypto Is Taxed in the UK
HMRC treats cryptocurrency as property, not currency. This means that most crypto transactions trigger Capital Gains Tax (CGT) rules. The key taxable events — called disposals — include selling crypto for GBP, swapping one token for another, spending crypto on goods or services, and gifting crypto (other than to a spouse or civil partner).
Simply buying crypto with GBP and holding it is not a taxable event. Transferring crypto between your own wallets is also not a disposal.
For the 2025/26 tax year, CGT on crypto is charged at 18% for gains within the basic rate band and 24% for gains in the higher and additional rate bands. Every individual has an Annual Exempt Amount (AEA) of £3,000 — gains up to this threshold are tax-free.
The rate you pay depends on your total taxable income. If your income plus gains stay within the basic rate band (£37,700 above your Personal Allowance), the 18% rate applies. Any portion above that is taxed at 24%.
How Token Matching Works
When you sell crypto, HMRC requires you to match the disposal against specific acquisitions in a strict priority order. This determines your allowable cost (and therefore your gain or loss).
1. Same-Day Rule
If you buy and sell the same token on the same day, the sell is matched against the same-day buy first. This prevents you from crystallising a gain or loss and immediately reacquiring at a similar price.
2. Bed-and-Breakfasting Rule (30-Day Rule)
If you sell a token and repurchase the same token within 30 days, the sale is matched against the repurchase. This stops the practice of selling to realise a loss and buying back shortly after. Only acquisitions after the disposal date are matched under this rule (FIFO within the 30-day window).
3. Section 104 Pool
Any remaining quantity not matched by the above rules is matched against the Section 104 pool — a running average of all your previous acquisitions of that token. The pool tracks total quantity and total cost. Each disposal reduces both in proportion, using the average cost per unit at the time of the disposal.
Crypto Income: Mining, Staking & Airdrops
Not all crypto tax is capital gains. If you receive crypto as income — through mining, staking rewards, airdrops, or as payment for goods and services — it is subject to Income Tax at your marginal rate.
The taxable amount is the GBP market value of the tokens at the time you receive them. This value also becomes the acquisition cost for future CGT purposes — so if you later sell the tokens at a higher price, you pay CGT only on the growth since receipt.
Mining and staking income may also be subject to National Insurance if it constitutes a trade. HMRC assesses each case individually based on factors like scale, frequency, and commercial intent.
Airdrops are taxable as income if you receive them in return for doing something (e.g. a marketing bounty). Unsolicited airdrops with no action required are generally not taxable on receipt, but a disposal of the airdropped tokens would still trigger CGT.
Frequently asked questions
Do I pay tax on crypto in the UK?
Yes. HMRC treats cryptocurrency as property, not currency. When you sell, swap, or spend crypto you trigger a disposal that may be subject to Capital Gains Tax. You also pay Income Tax on crypto received as earnings, mining rewards, staking income, or certain airdrops.
How much crypto can I sell tax-free?
For 2025/26 the Annual Exempt Amount (AEA) for Capital Gains Tax is £3,000. Gains up to this threshold are tax-free. The AEA is per person, per tax year, and cannot be carried forward.
What is the Section 104 pool?
The Section 104 pool is HMRC's method for tracking the average cost of tokens you hold. Each time you buy a token, the quantity and cost are added to the pool. When you sell, the allowable cost is calculated using the pool's average cost per unit. This is the default matching rule after same-day and 30-day (bed-and-breakfast) rules have been applied.
Do I pay tax when I swap one crypto for another?
Yes. Swapping one cryptocurrency for another — for example trading BTC for ETH — counts as a disposal of the first token at its market value. You may realise a gain or loss on the disposed token, which is subject to Capital Gains Tax.
What are the crypto CGT rates for 2025/26?
For 2025/26, crypto gains are taxed at 18% for basic rate taxpayers and 24% for higher and additional rate taxpayers. The rate depends on how much of your basic rate band (£37,700) is unused after your other income.
Can I offset crypto losses against gains?
Yes. Capital losses from crypto disposals can be offset against gains in the same tax year. If your losses exceed your gains, the excess can be carried forward to future years. You must report losses to HMRC within four years of the end of the tax year in which the loss occurred.
How are staking rewards taxed?
Staking rewards are generally treated as miscellaneous income and subject to Income Tax at your marginal rate. The taxable amount is the GBP value of the tokens at the time you receive them. When you later sell the staking rewards, you may also owe Capital Gains Tax on any increase in value since receipt.
Do I need to report crypto on my tax return?
You must report crypto disposals on your Self Assessment tax return if your total gains exceed the Annual Exempt Amount (£3,000 for 2025/26), or if your total disposal proceeds exceed four times the AEA (£12,000). You should also report allowable losses you want to claim.
Sources
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