UK Crypto Tax

Yes. If you sell, swap, or spend crypto, it may be subject to Capital Gains Tax. If you earn crypto (e.g. mining, staking, airdrops), this may fall under Income Tax. The specific tax treatment depends on your individual circumstances and the nature of your crypto activities.

Capital Gains Tax is usually 10% for basic rate taxpayers or 20% for higher and additional rate taxpayers. Income Tax follows standard UK bands: 20% (basic rate), 40% (higher rate), and 45% (additional rate). Your total income determines which rate applies to your crypto gains.

Yes. In 2024/25, the Capital Gains Tax annual exempt amount is £3,000. This means your first £3,000 of capital gains (from all sources, not just crypto) is tax-free. Gains above this threshold are taxable at your applicable rate.

UK exchanges may share customer data with HMRC under information sharing agreements. HMRC has also sent "nudge letters" to thousands of UK taxpayers suspected of undeclared crypto gains. International exchanges may share data through Common Reporting Standard (CRS) agreements.

You could face penalties and interest charges from HMRC. Penalties can range from 0-100% of the tax owed depending on the circumstances. Voluntary disclosure usually results in lower penalties than waiting for HMRC to contact you. In serious cases, criminal prosecution is possible.

Yes. Capital losses from crypto can be reported to HMRC and used to reduce your capital gains in the same tax year or carried forward to future years. You must report losses within 4 years of the end of the tax year in which they occurred to claim relief.

Yes. Swapping one cryptocurrency for another is considered a disposal for tax purposes and can trigger Capital Gains Tax. This includes trading Bitcoin for Ethereum, using crypto to buy NFTs, or any other crypto-to-crypto transaction. You must calculate the GBP value at the time of each trade.

Yes. NFTs are treated similarly to other crypto assets for UK tax purposes. Selling, swapping, or gifting NFTs can trigger Capital Gains Tax. If you create and sell NFTs as a business, this may be treated as trading income subject to Income Tax and National Insurance.