Last updated: 14 October 2026
What are the tax rules for reporting crypto profits?
For most individuals, crypto profits are capital gains. You pay CGT when you sell crypto for pounds, swap one token for another, spend it on goods, or give it away (except to a spouse). Gains above the £3,000 annual exempt amount are taxed at 18% or 24% in 2026/27. You must report gains on your Self Assessment return if your total gains are over £3,000, or your disposal proceeds exceed £50,000. Only if you trade very frequently in an organised way might it count as trading income.
Taxable events
| Action | Taxable? |
| Selling crypto for pounds | Yes, CGT |
| Swapping crypto for crypto | Yes, CGT on the token given up |
| Spending crypto on goods | Yes, CGT |
| Gifting to someone (not spouse) | Yes, at market value |
| Moving between your own wallets | No |
| Buying crypto with pounds | No |
| Gifting to spouse | No gain, no loss |
Working out the gain
Crypto is pooled for each type of token. Your cost is the average of the pool. Two special rules apply:
- Same-day rule: tokens bought on the day of a sale are matched first
- 30-day rule: tokens bought in the next 30 days are matched next
Then the pool average applies.
Example
Kate buys 2 ETH for £3,000 in 2024 and 1 ETH for £2,500 in 2025. Her pool is 3 ETH costing £5,500. In 2026/27, she sells 1.5 ETH for £5,000. Her allowable cost is £2,750 (half the pool). Her gain is £2,250, which is within her £3,000 annual exempt amount, so no tax. Her proceeds are under £50,000, so she doesn’t need to report it unless she files for other reasons.
Losses
Losses on crypto can be set against other gains in the same year, then carried forward. You must report a loss within 4 years of the end of the tax year to use it. If tokens become worthless, a negligible value claim may create a loss.
Income from crypto
Some crypto receipts are income, not gains:
- Mining and staking rewards
- Airdrops received in return for something
- Crypto received as pay
These are taxed as income at their sterling value when received.
Reporting rules from 2026
Since 1 January 2026, UK crypto platforms report users’ transactions to HMRC under the Cryptoasset Reporting Framework. HMRC can compare these with tax returns. If you’ve under-reported in past years, use HMRC’s cryptoasset disclosure service.
Common mistakes
- Not counting crypto-to-crypto swaps
- Ignoring the 30-day rule
- Forgetting to report losses
- Using FIFO rather than pooling
Records to keep
Keep records of every transaction: date, type, number of tokens, sterling value and fees. Exchange records may not be available later.
Fees
Exchange and network fees paid when buying or selling can be deducted in working out the gain. Fees paid in crypto are themselves a small disposal, so they should be recorded too.
Frequently asked questions
Is crypto subject to IHT?
Yes, it’s part of your estate.
Do I pay tax on unrealised gains?
No.
Are NFTs taxed the same way?
Generally yes, as assets.
What if I’m non-resident?
UK CGT doesn’t usually apply.
Related: being paid in crypto, whether you need a tax return and HMRC questions about money overseas.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with crypto capital gains reporting. See our sole trader accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
