How to compute UK Crypto Tax for United Kingdom, tax year 2025: rates, thresholds, and step-by-step rules with primary-source citations.
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Scope the year and gather every transaction
Confirm UK tax residence and the tax year(s) in scope (6 April to 5 April). Pull full transaction logs from every exchange, wallet, and DeFi protocol, and convert each amount to GBP at its transaction-date rate.
Watch for: All cryptoasset values must be recorded in GBP at the transaction date. Scotland uses separate income tax bands but the same CGT rules.
Classify each event: capital disposal vs income
Tag every event. Disposals: selling for fiat, crypto-to-crypto swaps, spending crypto on goods or services, and gifts to anyone other than a spouse or civil partner. Income: mining, staking rewards, airdrops received for a service or action, salary paid in crypto, and DeFi yield. Not disposals: transfers between your own wallets, and gifts to a spouse or civil partner (no gain, no loss, transferee inherits the cost basis).
Watch for: Cryptoassets are CGT assets by default for individuals, and a crypto-to-crypto swap is itself a disposal.
HMRC Cryptoassets Manual CRYPTO22100
Every figure is drawn from this Tax Guide and cited to its source.
Basic rate taxpayer
18%TCGA 1992
Higher/additional rate
24%TCGA 1992
AEA
£3,000TCGA 1992
Required method
S104 pooling (weighted average)TCGA 1992 s.104
FIFO
NOT permittedHMRC CRYPTO22200
Specific identification
NOT permitted for cryptoHMRC CRYPTO22200
1st: Same-day
Match same-day acquisitionsTCGA s.105(1)
2nd: 30-day rule
Match acquisitions within 30 days AFTER disposalTCGA s.106A
3rd: S104 pool
Average cost from poolTCGA s.104
Mining (hobbyist)
Miscellaneous income at FMVITTOIA s.687
Covers three UK tax years: 2024-25, 2025-26, and 2026-27, including the mid-year CGT rate change on 30 October 2024 and the introduction of the Crypto Asset Reporting Framework (CARF) from April 2026.
Reviewed against the cited tax authorities by James Power on 2026-06-03. Items flagged for further clarification are tracked separately and excluded here. This block is generated from verified
skill_facts— edit the facts, not the prose.
Quick Reference
| Field | Value |
|---|---|
| Country | United Kingdom (England, Wales, Northern Ireland; Scotland has different income tax rates) |
| Tax | Capital Gains Tax (CGT) and Income Tax on cryptoassets |
| Currency | GBP (all values must be converted to GBP at the transaction date) |
| Tax year | 6 April – 5 April |
| Primary authority | HMRC Cryptoassets Manual (CRYPTO10000+); Taxation of Chargeable Gains Act 1992 (TCGA 1992); Income Tax Act 2007 (ITA 2007); Income Tax (Trading and Other Income) Act 2005 (ITTOIA 2005); Finance Act 2024 (rate change at 30 Oct 2024) |
| Tax authority | HM Revenue & Customs (HMRC) |
| Filing portal | HMRC Self Assessment Online / Government Gateway |
| Cost basis method | Section 104 pooling (TCGA 1992 S104), subject to same-day and 30-day matching rules |
| Anti-avoidance | 30-day bed-and-breakfasting rule (TCGA 1992 S106A) |
| Reporting form | SA108 (Capital Gains Summary) supplementary to SA100 — dedicated cryptoasset tick box from 2024-25 |
| Exchange reporting | CARF first reporting in 2027 covering 2026 calendar year transactions; DAC8-equivalent UK rules align |
| Validated by | Verified by James Power on 2026-06-03 |
| Skill version | 2.0 |
Three-Year Snapshot
| Item | 2024-25 | 2025-26 | 2026-27 |
|---|---|---|---|
| CGT rate (basic-rate) | 10% pre-30 Oct 2024 / 18% from 30 Oct 2024 | 18% | 18% |
| CGT rate (higher/additional) | 20% pre-30 Oct 2024 / 24% from 30 Oct 2024 | 24% | 24% |
| Annual Exempt Amount (individuals) | £3,000 | £3,000 | £3,000 |
| Annual Exempt Amount (trustees) | £1,500 | £1,500 | £1,500 |
| SA108 crypto tick box | Yes (new from 2024-25) | Yes | Yes |
| CARF reporting | Not yet | Data collection prep | Data collection begins (calendar 2026); first reports filed 2027 |
| Personal Allowance | £12,570 | £12,570 | £12,570 (subject to confirmation) |
HMRC Cryptoasset Classification
| Asset Type | HMRC Classification | CGT Treatment | Income Tax Treatment |
|---|---|---|---|
| Exchange tokens (BTC, ETH, LTC) | Tokens used as means of payment | Subject to CGT on disposal | Mining/staking/airdrops = income |
| Utility tokens | Tokens providing access to a service | Subject to CGT on disposal | Trading profits = income if traded |
| Security tokens | Tokens providing rights like shares/debt | Subject to CGT on disposal | May also attract income tax on returns |
| Stablecoins (USDT, USDC) | Exchange tokens pegged to fiat | Subject to CGT on disposal (gain usually negligible) | N/A |
| NFTs | Non-fungible tokens | Subject to CGT on disposal | Creator sales = trading income |
Conservative Defaults
| Ambiguity | Default |
|---|---|
| Unknown cost basis | Zero cost basis (maximises gain) — STOP if material |
| Unknown whether trading or investment | Treat as investment (CGT) unless clear badges of trade |
| Unknown token classification | Treat as exchange token (subject to CGT) |
| Unknown FMV at receipt | Use CoinGecko/CoinMarketCap daily close in GBP |
| Unknown whether income or capital DeFi return | Income (higher rate treatment) |
| Airdrop with no clear service performed | Income at FMV on receipt |
| Disposal date straddles 30 Oct 2024 | Use contract date of disposal to allocate to pre- or post-30 Oct rate |
HMRC treats cryptoassets as CGT assets by default for individuals. This classification applies across all three tax years covered (2024-25, 2025-26, 2026-27).
Crypto received as income (employment, mining, staking rewards, airdrops with conditions) is taxed as miscellaneous income or trading income — income tax + NIC.
Income Tax Applicability Table
| Activity | Tax Treatment | Authority |
|---|---|---|
| Mining (hobbyist) | Miscellaneous income at FMV when received | ITTOIA 2005 S687; CRYPTO21200 |
| Mining (commercial/business) | Trading income; expenses deductible; Class 2/4 NIC | ITTOIA 2005 Part 2; CRYPTO21200 |
| Staking rewards | Miscellaneous income at FMV when received | CRYPTO21200 |
| Airdrops (for service/action) | Miscellaneous income at FMV when received | CRYPTO21250 |
| Airdrops (unsolicited, no action) | Not income on receipt; CGT on disposal from zero cost | CRYPTO21250 |
| Employer pays salary in crypto | Employment income at FMV; PAYE/NIC applies | CRYPTO21100 |
| DeFi yield (income returns) | Miscellaneous income or trading income | CRYPTO61200 |
Income Tax Rates
| Band | Taxable Income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 – £50,270 | 20% |
| Higher rate | £50,271 – £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
Bands and Personal Allowance are frozen through 2027-28 under the previous Government's policy; 2026-27 figures subject to confirmation in Autumn Budget 2025. Scotland operates separate income tax bands.
This is the central rate reference for crypto disposals. Use it to determine which rate applies based on the date of disposal.
CGT Rates for Cryptoassets — 3-Year View
| Tax Year | Period | Basic-rate (gains in basic band) | Higher / Additional / Trustees | Annual Exempt Amount |
|---|---|---|---|---|
| 2024-25 | 6 Apr 2024 – 29 Oct 2024 | 10% | 20% | £3,000 |
| 2024-25 | 30 Oct 2024 – 5 Apr 2025 | 18% | 24% | (shared £3,000) |
| 2025-26 | 6 Apr 2025 – 5 Apr 2026 | 18% | 24% | £3,000 |
| 2026-27 | 6 Apr 2026 – 5 Apr 2027 | 18% | 24% | £3,000 |
Authority: Finance Act 2024 (Autumn 2024) increased the main rates from 10%/20% to 18%/24% with effect from 30 October 2024. The 2024-25 tax year is therefore split: disposals on or before 29 October 2024 use the old rates; disposals on or after 30 October 2024 use the new rates. From 2025-26 onwards the full year uses 18%/24%.
The Annual Exempt Amount of £3,000 is a single annual allowance per individual — it is not split across the two halves of 2024-25. Apply it once against total chargeable gains for the year.
(Unchanged across all three years.)
HMRC requires a specific matching order for cryptoasset disposals (CRYPTO22200):
Matching Order
| Priority | Rule | Reference |
|---|---|---|
| 1st | Same-day rule — match against tokens of the same type acquired on the same day | TCGA 1992 S105(1) |
| 2nd | 30-day rule (bed-and-breakfasting) — match against tokens of the same type acquired within 30 days AFTER the disposal | TCGA 1992 S106A |
| 3rd | S104 pool — match against the average cost of the S104 pool of that token type | TCGA 1992 S104 |
The S104 pool is a running weighted-average cost pool for each token type. Each time you acquire tokens, the pool quantity and pool cost increase. Each time you dispose of tokens (not matched by same-day or 30-day rules), the cost of disposal is the proportionate share of the pool cost.
Permitted Method table
| Permitted Method | Status |
|---|---|
| S104 pooling (weighted average) | MANDATORY for most disposals |
| FIFO | NOT permitted |
| LIFO | NOT permitted |
| Specific identification | NOT permitted for crypto |
(Substantively unchanged across the three years. Watch for outcomes of the ongoing DeFi consultation.)
DeFi Lending table
| DeFi Activity | Tax Treatment | Key Question |
|---|---|---|
| Lending tokens to a protocol | Disposal if beneficial ownership transfers; not a disposal if beneficial ownership retained | Does the borrower/platform have free use of the tokens? |
| Receiving LP tokens in return | Exchange of tokens = disposal of deposited tokens, acquisition of LP tokens at FMV | CRYPTO61620 |
| Interest/yield received | Miscellaneous income at FMV on receipt (NOT interest — crypto is not money) | CRYPTO61200 |
| Withdrawal from protocol | Disposal of LP tokens, reacquisition of underlying | FMV at withdrawal |
| Impermanent loss | Crystallised on withdrawal — reflected in gain/loss on LP token disposal | No separate relief |
DeFi consultation status: A 2022/2023 HMRC consultation proposed an elective regime to disregard DeFi lending/staking disposals for CGT until economic disposal. No legislation enacted by 2025-26; status to be re-checked for 2026-27.
Staking table
| Aspect | Treatment |
|---|---|
| Proof-of-stake validation rewards | Miscellaneous income at FMV when received (CRYPTO21200) |
| Cost basis of staking reward | FMV at receipt date (becomes acquisition cost for CGT) |
| Subsequent sale of staking reward | CGT on gain from FMV cost basis (rate per Section 3 table) |
| Staking-as-a-service provider | Trading income; business expenses deductible |
Mining table
| Aspect | Treatment |
|---|---|
| Hobby mining | Miscellaneous income at FMV when mined (CRYPTO21200) |
| Business mining | Trading income; expenses deductible (electricity, hardware depreciation, rent) |
| Cost basis of mined tokens | FMV at date mined |
| Subsequent sale of mined tokens | CGT on gain from FMV cost basis |
Airdrops table
| Scenario | Treatment |
|---|---|
| Airdrop received in return for a service or action | Miscellaneous income at FMV on receipt |
| Unsolicited airdrop (no action required) | NOT income on receipt; zero cost basis; full gain taxable as CGT on disposal |
| Airdrop with negligible value | Record at zero; CGT on disposal |
Hard Forks table
| Scenario | Treatment |
|---|---|
| New tokens from fork (e.g. BTC → BCH) | NOT a disposal of original tokens; new tokens received at zero cost (no acquisition cost) |
| Sale of forked tokens | Full proceeds = gain (zero cost basis) |
| Apportioning original cost | HMRC does not require cost apportionment for hard forks — new token cost = £0 |
(Unchanged across the three years; rate changes per Section 3 apply.)
NFT Treatment table
| Event | Tax Treatment |
|---|---|
| Purchase of NFT (collector) | Acquisition — record cost basis including gas fees |
| Sale of NFT (collector) | CGT on disposal (proceeds minus pool cost of NFT) at applicable rate |
| Creation and primary sale of NFT (artist) | Trading income if business; miscellaneous income if one-off |
| Royalty income from secondary sales | Miscellaneous income at FMV on receipt |
| NFT-for-NFT swap | Disposal of both NFTs; each at FMV |
| NFT becomes worthless | Negligible value claim possible (TCGA 1992 S24(2)) — triggers loss |
| VAT on NFT | Potentially subject to VAT at 20% if seller is VAT-registered (digitally supplied service) |
Self Assessment Forms table
| Form | Purpose |
|---|---|
| SA100 | Main Self Assessment tax return |
| SA108 | Capital Gains Summary supplementary page — with cryptoasset tick box from 2024-25 |
Key Deadlines table
| Tax Year | End of Year | Paper SA100 | Online SA100 / Payment |
|---|---|---|---|
| 2024-25 | 5 Apr 2025 | 31 Oct 2025 | 31 Jan 2026 |
| 2025-26 | 5 Apr 2026 | 31 Oct 2026 | 31 Jan 2027 |
| 2026-27 | 5 Apr 2027 | 31 Oct 2027 | 31 Jan 2028 |
The major change for 2026-27 and beyond.
The UK is implementing the OECD Crypto Asset Reporting Framework (CARF), the international equivalent of the EU's DAC8 regime. Key timeline and effects:
CARF Milestone table
| Milestone | Date | Effect |
|---|---|---|
| Reporting Crypto-Asset Service Providers (RCASPs) data collection begins | 1 January 2026 | UK exchanges, custodians, brokers, and certain DeFi front-ends must collect KYC + transaction data on UK-resident users |
| First reportable period | Calendar year 2026 | All in-scope transactions during 2026 are reportable |
| First report filed with HMRC | 2027 (deadline expected May 2027) | RCASPs send user-level data to HMRC |
| HMRC information exchange with other CARF jurisdictions | From 2027 onwards | Bilateral exchange under CARF MCAA |
Practical implications for taxpayers (from April 2026):
DAC8 (EU-equivalent) status for UK: The UK is implementing CARF-aligned rules rather than DAC8 directly (post-Brexit). The direction and data set are equivalent; precise UK reporting thresholds and de minimis rules are being finalised in HMRC technical guidance — TBC for full 2026-27 production cycle. Watch for the final HMRC Cryptoasset Service Provider Reporting Regulations.
Exchange Reporting Position table
| Tax Year | Mandatory third-party reporting? |
|---|---|
| 2024-25 | No mandatory CARF reporting yet; HMRC information powers only |
| 2025-26 | No mandatory CARF reporting yet; preparation period |
| 2026-27 | Yes — CARF data collection from 1 Jan 2026, first reports to HMRC in 2027 |
Record-Keeping table
| Requirement | Detail |
|---|---|
| Retention period | At least 5 years after the 31 January filing deadline (effectively ~6 years from end of tax year) |
| Records to maintain | Full transaction logs from all exchanges, wallet addresses, S104 pool calculations, staking/mining logs, DeFi protocol records |
| Format | CSV exports preferred; screenshots acceptable as backup; on-chain records (block explorer links) recommended |
(Unchanged across the three years.)
Capital Losses table
| Rule | Detail | Authority |
|---|---|---|
| In-year offset | Allowable losses MUST be set against gains of the same tax year first | TCGA 1992 S2 |
| Carry-forward | Unused losses can be carried forward indefinitely | TCGA 1992 S2(2) |
| Carry-forward limitation | Carried-forward losses can only reduce gains to the annual exempt amount (£3,000) | TCGA 1992 S3 |
| Carry-back | NOT permitted (except on death) | — |
| Reporting deadline | Losses MUST be reported to HMRC within 4 years of the end of the tax year in which they arose | TCGA 1992 S16(2A) |
| Negligible value claim | For tokens that become worthless — treated as disposal and reacquisition at negligible value, crystallising a loss | TCGA 1992 S24(2) |
If you do not report a capital loss within 4 years of the end of the tax year in which it arose, the loss is permanently lost.
Loss Claim Window table
| Loss arising in | Must be reported by |
|---|---|
| 2024-25 | 5 Apr 2029 |
| 2025-26 | 5 Apr 2030 |
| 2026-27 | 5 Apr 2031 |
Facts: UK higher-rate taxpayer. S104 pool: 1 BTC at £20,000 cost. Disposes of the 1 BTC for £45,000 proceeds, £75 disposal fees. Other gains for the year: nil. We compute the CGT under four scenarios: pre- and post-30 Oct 2024 within 2024-25, then 2025-26, then 2026-27.
Common computation up to taxable gain:
Proceeds : £45,000
Less disposal fees : £75
Net proceeds : £44,925
Less S104 pool cost : £20,000
Gain : £24,925
Less annual exempt amt : £3,000
Taxable gain : £21,925
Scenario A — Disposal on 15 October 2024 (2024-25, pre-30 Oct rates):
Rate (higher-rate) : 20%
CGT : £21,925 × 20% = £4,385.00
Scenario B — Disposal on 1 December 2024 (2024-25, post-30 Oct rates):
Rate (higher-rate) : 24%
CGT : £21,925 × 24% = £5,262.00
Extra tax vs Scenario A : £877.00 (a ~20% increase in CGT for the same gain)
Scenario C — Disposal on 1 December 2025 (2025-26):
Rate (higher-rate) : 24%
CGT : £21,925 × 24% = £5,262.00
(Same as Scenario B — the rate is now 24% for the whole year)
Scenario D — Disposal on 1 December 2026 (2026-27):
Rate (higher-rate) : 24%
CGT : £21,925 × 24% = £5,262.00
(Rates unchanged from 2025-26; CARF reporting now applies to the exchange)
Key takeaway: Within 2024-25 the date of disposal matters — a 6-week shift from pre-30 Oct to post-30 Oct increased the tax bill on the same economic transaction by £877 (4 percentage points on £21,925). From 2025-26 onwards the rate is stable at 18%/24%.
Facts: UK higher-rate taxpayer with two BTC disposals in 2024-25:
Computation:
Gross gains : £25,000
Less AEA (£3,000) allocated pro-rata to each window
Pre-30 Oct share : £3,000 × (£10,000 / £25,000) = £1,200
Post-30 Oct share : £3,000 × (£15,000 / £25,000) = £1,800
Pre-30 Oct taxable gain : £10,000 − £1,200 = £8,800 × 20% = £1,760
Post-30 Oct taxable gain : £15,000 − £1,800 = £13,200 × 24% = £3,168
Total CGT for 2024-25 : £4,928
Allocate the AEA in proportion to gains in each window (HMRC's approach in the Finance Act 2024 transitional rules — confirm against final HMRC guidance for borderline cases).
Facts: UK basic-rate taxpayer. Bought 2 BTC at £20,000 each in January 2024. Sold 1 BTC at £45,000 in August 2025. Exchange fees: £50 acquisition, £75 disposal.
S104 pool:
2 BTC at £20,000 each = £40,000 + £50 fees = £40,050
Pool cost per BTC = £20,025
Disposal of 1 BTC:
Net proceeds : £45,000 − £75 = £44,925
S104 cost : £20,025
Gain : £24,900
Less AEA : £3,000
Taxable gain : £21,900
CGT @ 18% : £3,942
Facts: UK tax resident. S104 pool: 5 ETH, total cost £10,000 (£2,000 per ETH). Sells 5 ETH at £1,500 each (£7,500) on 1 November 2025. Rebuys 5 ETH at £1,600 each (£8,000) on 20 November 2025.
With 30-day rule (mandatory):
Disposal matched to reacquisition
Proceeds : £7,500
Matched cost : £8,000
Loss : (£500)
Deferred loss : £2,000 stays in the (now-replenished) S104 pool
Facts: UK higher-rate taxpayer. Received 0.5 ETH staking rewards during 2026-27; FMV at each receipt totalled £1,800. Sold 0.5 ETH in March 2027 at £2,200. Exchange is a CARF-reporting RCASP — HMRC will receive matching data in 2028.
Income tax on staking:
£1,800 × 40% = £720
CGT on disposal:
Proceeds : £2,200
Cost basis : £1,800
Gain : £400 (within £3,000 AEA — no CGT)
Total tax : £720
Disclosure : Tick the cryptoasset box on SA108; expect CARF data match in 2028.
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Review status
Accountant-reviewed
Reviewed by a named licensed practitioner against the stated sources, as general reference material.
Accountant-reviewed
Reviewed by James Power · 3 June 2026
A named accountant reviewed this complete Guide version within the stated scope. It is not a guarantee.
View review record →Other United Kingdom computations in the OpenAccountants Tax Library.
Value income events at GBP FMV on receipt
Measure mining, staking, airdrops-for-a-service, DeFi yield, and crypto salary at their GBP fair market value on the receipt date, and tax at the taxpayer's marginal income tax band. Hobby mining/staking/airdrops are miscellaneous income; commercial mining and staking-as-a-service are trading income (with Class 2/4 NIC). Unsolicited airdrops with no action are not income on receipt (zero cost basis). Record the receipt FMV as the acquisition cost for a later CGT disposal.
Watch for: Never treat mining/staking/airdrop receipts as capital gains, and do not double-count: the receipt FMV taxed as income becomes the CGT cost basis.
HMRC Cryptoassets Manual CRYPTO21100 / CRYPTO21200 / CRYPTO21250; ITTOIA 2005 s.687
Resolve DeFi lending and liquidity nuances
For each DeFi position, apply the beneficial-ownership test: lending tokens is a disposal if beneficial ownership passes, and not a disposal if it is retained. Receiving LP tokens is an exchange (disposal of the deposited tokens, acquisition of LP tokens at FMV), and withdrawal reverses it. Treat yield as miscellaneous income at FMV on receipt, never as interest.
Watch for: Crypto is not money, so DeFi returns are miscellaneous income, not interest. Impermanent loss crystallises only on withdrawal via the LP token gain or loss.
HMRC Cryptoassets Manual CRYPTO61000 / CRYPTO61200 / CRYPTO61620
Build cost basis with S104 pooling and the matching order
For each token type, apply the mandatory matching order in priority: first same-day acquisitions, then acquisitions within 30 days after the disposal (bed-and-breakfasting), then the S104 pool at weighted-average cost. Maintain a separate running pool per token type.
Watch for: FIFO, LIFO, and specific identification are not permitted for crypto. Same-day and 30-day matching are applied before the pool.
TCGA 1992 s.105(1), s.106A, s.104; HMRC Cryptoassets Manual CRYPTO22200
Compute the gain or loss on each disposal
For each disposal, take GBP proceeds at the disposal date, less the allowable cost (from same-day, 30-day, or pool), less incidental costs of disposal (exchange and gas fees). Include acquisition gas in cost basis, and note that gas paid in a token is itself a disposal at market value.
Watch for: Each unique NFT is its own asset (no pooling between different NFTs). Sum gains and losses across all disposals for the year.
HMRC Cryptoassets Manual CRYPTO22280
Apply capital losses in the correct order
Set allowable losses of the year against gains of the same year first, then use losses brought forward only to bring gains down to the annual exempt amount. Report losses to HMRC within four years of the end of the tax year in which they arose. Consider a negligible value claim for worthless tokens.
Watch for: Losses cannot be carried back (except on death), and an unreported loss is permanently lost after the four-year window.
TCGA 1992 s.2, s.3, s.16(2A), s.24(2)
Deduct the AEA and apply the CGT rate
Deduct the annual exempt amount once against total chargeable gains for the individual. Apply the CGT rate by the taxpayer's band and the disposal date: 18% (basic band) / 24% (higher and additional) on or after 30 October 2024, and 10% / 20% for disposals on or before 29 October 2024. For a 2024-25 year straddling the split, allocate the AEA pro-rata to gains in each window by contract date of disposal.
Watch for: The AEA is a single annual allowance, not split across the two 2024-25 rate windows. Use the contract date of disposal, not the settlement date, to pick the rate.
TCGA 1992 s.104; Finance Act 2024 (main rates 18% / 24% from 30 October 2024)
Report on Self Assessment
Report crypto disposals on SA108 (Capital Gains Summary) with SA100, and select the dedicated cryptoasset tick box (from 2024-25). File and pay by the 31 January online deadline. For 2026-27 onward, advise the client on CARF: exchange data collection begins 1 January 2026 with first HMRC reports in 2027, so keep KYC name, address, and NI number consistent across exchanges.
Watch for: The 60-day UK residential-property CGT return does not apply to crypto, but standard Self Assessment deadlines and the cryptoasset tick box do.
SA108 (Capital Gains Summary); OECD CARF (UK RCASP reporting from 1 January 2026)
Deliver the working paper and offer a review
Assemble the S104 pool schedules, per-disposal computations, income schedule, loss tracker, and SA108 figures into a working paper labelled as an estimate for professional review. Then call share_with_openaccountants to save it to the user's OpenAccountants review queue and offer James Power a review before filing.
Watch for: Present all figures as a working paper, not a filed return, and never present them as definitive.
What James checks before signing off
Ready to work through your own numbers? Add this Guide to your AI and it takes it from here, then routes the finished paper for a Partner to review.
Add to your AIStaking rewards
Miscellaneous income at FMVHMRC CRYPTO21200
Airdrop (service performed)
Miscellaneous income at FMVHMRC CRYPTO21250
Airdrop (unsolicited)
Not income; CGT on disposal from zero costHMRC CRYPTO21250
Quick Reference
| Field | Value | |---|---| | Country | United Kingdom (England, Wales, Northern Ireland; Scotland has different income tax rates) | | Tax | Capital Gains Tax (CGT) and Income Tax on cryptoassets | | Currency | GBP (all values must be converted to GBP at the transaction date) | | Tax year | 6 April – 5 April | | Primary authority | HMRC Cryptoassets Manual (CRYPTO10000+); Taxation of Chargeable Gains Act 1992 (TCGA 1992); Income Tax Act 2007 (ITA 2007); Income Tax (Trading and Other Income) Act 2005 (ITTOIA 2005); Finance Act 2024 (rate change at 30 Oct 2024) | | Tax authority | HM Revenue & Customs (HMRC) | | Filing portal | HMRC Self Assessment Online / Government Gateway | | Cost basis method | Section 104 pooling (TCGA 1992 S104), subject to same-day and 30-day matching rules | | Anti-avoidance | 30-day bed-and-breakfasting rule (TCGA 1992 S106A) | | Reporting form | SA108 (Capital Gains Summary) supplementary to SA100 — dedicated cryptoasset tick box from 2024-25 | | Exchange reporting | CARF first reporting in **2027** covering **2026 calendar year** transactions; DAC8-equivalent UK rules align | | Validated by | Verified by James Power on 2026-06-03 | | Skill version | 2.0 |
Three-Year Snapshot
| Item | 2024-25 | 2025-26 | 2026-27 | |---|---|---|---| | CGT rate (basic-rate) | 10% pre-30 Oct 2024 / **18%** from 30 Oct 2024 | 18% | 18% | | CGT rate (higher/additional) | 20% pre-30 Oct 2024 / **24%** from 30 Oct 2024 | 24% | 24% | | Annual Exempt Amount (individuals) | £3,000 | £3,000 | £3,000 | | Annual Exempt Amount (trustees) | £1,500 | £1,500 | £1,500 | | SA108 crypto tick box | Yes (new from 2024-25) | Yes | Yes | | CARF reporting | Not yet | Data collection prep | **Data collection begins (calendar 2026); first reports filed 2027** | | Personal Allowance | £12,570 | £12,570 | £12,570 (subject to confirmation) |
HMRC Cryptoasset Classification
| Asset Type | HMRC Classification | CGT Treatment | Income Tax Treatment | |---|---|---|---| | Exchange tokens (BTC, ETH, LTC) | Tokens used as means of payment | Subject to CGT on disposal | Mining/staking/airdrops = income | | Utility tokens | Tokens providing access to a service | Subject to CGT on disposal | Trading profits = income if traded | | Security tokens | Tokens providing rights like shares/debt | Subject to CGT on disposal | May also attract income tax on returns | | Stablecoins (USDT, USDC) | Exchange tokens pegged to fiat | Subject to CGT on disposal (gain usually negligible) | N/A | | NFTs | Non-fungible tokens | Subject to CGT on disposal | Creator sales = trading income |
Conservative Defaults
| Ambiguity | Default | |---|---| | Unknown cost basis | Zero cost basis (maximises gain) — STOP if material | | Unknown whether trading or investment | Treat as investment (CGT) unless clear badges of trade | | Unknown token classification | Treat as exchange token (subject to CGT) | | Unknown FMV at receipt | Use CoinGecko/CoinMarketCap daily close in GBP | | Unknown whether income or capital DeFi return | Income (higher rate treatment) | | Airdrop with no clear service performed | Income at FMV on receipt | | Disposal date straddles 30 Oct 2024 | Use **contract date of disposal** to allocate to pre- or post-30 Oct rate |
Disposal definition
HMRC treats cryptoassets as property, not currency. Each disposal triggers a CGT computation. A "disposal" includes: Selling tokens for fiat; Exchanging tokens for a different type of token (crypto-to-crypto swap); Using tokens to pay for goods or services; Giving away tokens (except to spouse/civil partner)CRYPTO22100
NOT a disposal
Transferring between own wallets; Using a mixer/tumbler where same token type returned; Gifting to spouse/civil partner (no gain, no loss — transferee inherits cost basis)
Income Tax Applicability Table
| Activity | Tax Treatment | Authority | |---|---|---| | Mining (hobbyist) | Miscellaneous income at FMV when received | ITTOIA 2005 S687; CRYPTO21200 | | Mining (commercial/business) | Trading income; expenses deductible; Class 2/4 NIC | ITTOIA 2005 Part 2; CRYPTO21200 | | Staking rewards | Miscellaneous income at FMV when received | CRYPTO21200 | | Airdrops (for service/action) | Miscellaneous income at FMV when received | CRYPTO21250 | | Airdrops (unsolicited, no action) | Not income on receipt; CGT on disposal from zero cost | CRYPTO21250 | | Employer pays salary in crypto | Employment income at FMV; PAYE/NIC applies | CRYPTO21100 | | DeFi yield (income returns) | Miscellaneous income or trading income | CRYPTO61200 |
Income Tax Rates
| Band | Taxable Income | Rate | |---|---|---| | Personal Allowance | Up to £12,570 | 0% | | Basic rate | £12,571 – £50,270 | 20% | | Higher rate | £50,271 – £125,140 | 40% | | Additional rate | Over £125,140 | 45% |
CGT Rates for Cryptoassets — 3-Year View
| Tax Year | Period | Basic-rate (gains in basic band) | Higher / Additional / Trustees | Annual Exempt Amount | |---|---|---|---|---| | **2024-25** | 6 Apr 2024 – **29 Oct 2024** | **10%** | **20%** | £3,000 | | **2024-25** | **30 Oct 2024** – 5 Apr 2025 | **18%** | **24%** | (shared £3,000) | | **2025-26** | 6 Apr 2025 – 5 Apr 2026 | **18%** | **24%** | £3,000 | | **2026-27** | 6 Apr 2026 – 5 Apr 2027 | **18%** | **24%** | £3,000 |
CGT Computation formula
Disposal proceeds (GBP at date of disposal) LESS: Allowable cost (from S104 pool, same-day rule, or 30-day rule) LESS: Incidental costs of disposal (exchange fees, gas fees) = Gain or (Loss) Total gains for the year LESS: Allowable losses of the year LESS: Losses brought forward (only to reduce gains to annual exempt amount) LESS: Annual exempt amount (£3,000) = Taxable gains For 2024-25 only: allocate taxable gains between pre- and post-30 Oct disposals in proportion to gross gains in each window, then apply the applicable rate. Tax = Taxable gains × applicable rate(s) per table above
Cryptoasset tick box
HMRC introduced a dedicated "crypto asset" tick box on SA108 from the 2024-25 tax year. Where any portion of the year's disposals are cryptoassets, the box must be ticked, and crypto disposals must be separately identified in the supporting computations. This obligation continues in 2025-26 and 2026-27.
Matching Order
| Priority | Rule | Reference | |---|---|---| | 1st | **Same-day rule** — match against tokens of the same type acquired on the same day | TCGA 1992 S105(1) | | 2nd | **30-day rule (bed-and-breakfasting)** — match against tokens of the same type acquired within 30 days AFTER the disposal | TCGA 1992 S106A | | 3rd | **S104 pool** — match against the average cost of the S104 pool of that token type | TCGA 1992 S104 |
Pool cost formula
Pool cost per token = Total pool cost ÷ Total pool quantity Cost of disposal = Tokens disposed × Pool cost per token
Permitted Method table
| Permitted Method | Status | |---|---| | S104 pooling (weighted average) | MANDATORY for most disposals | | FIFO | NOT permitted | | LIFO | NOT permitted | | Specific identification | NOT permitted for crypto |
Included in cost basis
Purchase price in GBP (converted at exchange rate on acquisition date); Exchange fees and commissions on acquisition; Gas/network fees on acquisition (CRYPTO22280); Note: token fees paid as gas are themselves a disposal at market valueCRYPTO22280
DeFi Lending table
| DeFi Activity | Tax Treatment | Key Question | |---|---|---| | Lending tokens to a protocol | **Disposal** if beneficial ownership transfers; **not a disposal** if beneficial ownership retained | Does the borrower/platform have free use of the tokens? | | Receiving LP tokens in return | Exchange of tokens = disposal of deposited tokens, acquisition of LP tokens at FMV | CRYPTO61620 | | Interest/yield received | Miscellaneous income at FMV on receipt (NOT interest — crypto is not money) | CRYPTO61200 | | Withdrawal from protocol | Disposal of LP tokens, reacquisition of underlying | FMV at withdrawal | | Impermanent loss | Crystallised on withdrawal — reflected in gain/loss on LP token disposal | No separate relief |
Staking table
| Aspect | Treatment | |---|---| | Proof-of-stake validation rewards | Miscellaneous income at FMV when received (CRYPTO21200) | | Cost basis of staking reward | FMV at receipt date (becomes acquisition cost for CGT) | | Subsequent sale of staking reward | CGT on gain from FMV cost basis (rate per Section 3 table) | | Staking-as-a-service provider | Trading income; business expenses deductible |
Mining table
| Aspect | Treatment | |---|---| | Hobby mining | Miscellaneous income at FMV when mined (CRYPTO21200) | | Business mining | Trading income; expenses deductible (electricity, hardware depreciation, rent) | | Cost basis of mined tokens | FMV at date mined | | Subsequent sale of mined tokens | CGT on gain from FMV cost basis |
Airdrops table
| Scenario | Treatment | |---|---| | Airdrop received in return for a service or action | Miscellaneous income at FMV on receipt | | Unsolicited airdrop (no action required) | NOT income on receipt; zero cost basis; full gain taxable as CGT on disposal | | Airdrop with negligible value | Record at zero; CGT on disposal |
Hard Forks table
| Scenario | Treatment | |---|---| | New tokens from fork (e.g. BTC → BCH) | NOT a disposal of original tokens; new tokens received at zero cost (no acquisition cost) | | Sale of forked tokens | Full proceeds = gain (zero cost basis) | | Apportioning original cost | HMRC does not require cost apportionment for hard forks — new token cost = £0 |
NFT Treatment table
| Event | Tax Treatment | |---|---| | Purchase of NFT (collector) | Acquisition — record cost basis including gas fees | | Sale of NFT (collector) | CGT on disposal (proceeds minus pool cost of NFT) at applicable rate | | Creation and primary sale of NFT (artist) | Trading income if business; miscellaneous income if one-off | | Royalty income from secondary sales | Miscellaneous income at FMV on receipt | | NFT-for-NFT swap | Disposal of both NFTs; each at FMV | | NFT becomes worthless | Negligible value claim possible (TCGA 1992 S24(2)) — triggers loss | | VAT on NFT | Potentially subject to VAT at 20% if seller is VAT-registered (digitally supplied service) |
NFT pooling treatment
HMRC treats NFTs the same as any other cryptoasset for CGT purposes (CRYPTO22100). Each unique NFT is its own asset — no pooling between different NFTs.CRYPTO22100
Self Assessment Forms table
| Form | Purpose | |---|---| | SA100 | Main Self Assessment tax return | | SA108 | Capital Gains Summary supplementary page — with cryptoasset tick box from 2024-25 |
SA108 filing triggers
You must file SA108 if any of the following apply (all three years): Total disposal proceeds from all assets exceed £50,000; Chargeable gains before losses exceed £3,000 (the annual exempt amount); You wish to claim an allowable capital loss; Losses brought forward are being used; You are reporting any cryptoasset disposal (tick the dedicated cryptoasset box from 2024-25 onwards)
Key Deadlines table
| Tax Year | End of Year | Paper SA100 | Online SA100 / Payment | |---|---|---|---| | 2024-25 | 5 Apr 2025 | 31 Oct 2025 | 31 Jan 2026 | | 2025-26 | 5 Apr 2026 | 31 Oct 2026 | 31 Jan 2027 | | 2026-27 | 5 Apr 2027 | 31 Oct 2027 | 31 Jan 2028 |
Payments on account
Payments on account: 31 January and 31 July each year.
CARF Milestone table
| Milestone | Date | Effect | |---|---|---| | Reporting Crypto-Asset Service Providers (RCASPs) data collection begins | **1 January 2026** | UK exchanges, custodians, brokers, and certain DeFi front-ends must collect KYC + transaction data on UK-resident users | | First reportable period | **Calendar year 2026** | All in-scope transactions during 2026 are reportable | | First report filed with HMRC | **2027** (deadline expected May 2027) | RCASPs send user-level data to HMRC | | HMRC information exchange with other CARF jurisdictions | From **2027** onwards | Bilateral exchange under CARF MCAA |
Exchange Reporting Position table
| Tax Year | Mandatory third-party reporting? | |---|---| | 2024-25 | No mandatory CARF reporting yet; HMRC information powers only | | 2025-26 | No mandatory CARF reporting yet; preparation period | | 2026-27 | **Yes — CARF data collection from 1 Jan 2026, first reports to HMRC in 2027** |
Record-Keeping table
| Requirement | Detail | |---|---| | Retention period | At least 5 years after the 31 January filing deadline (effectively ~6 years from end of tax year) | | Records to maintain | Full transaction logs from all exchanges, wallet addresses, S104 pool calculations, staking/mining logs, DeFi protocol records | | Format | CSV exports preferred; screenshots acceptable as backup; on-chain records (block explorer links) recommended |
Capital Losses table
| Rule | Detail | Authority | |---|---|---| | In-year offset | Allowable losses MUST be set against gains of the same tax year first | TCGA 1992 S2 | | Carry-forward | Unused losses can be carried forward indefinitely | TCGA 1992 S2(2) | | Carry-forward limitation | Carried-forward losses can only reduce gains to the annual exempt amount (£3,000) | TCGA 1992 S3 | | Carry-back | NOT permitted (except on death) | — | | Reporting deadline | Losses MUST be reported to HMRC within **4 years** of the end of the tax year in which they arose | TCGA 1992 S16(2A) | | Negligible value claim | For tokens that become worthless — treated as disposal and reacquisition at negligible value, crystallising a loss | TCGA 1992 S24(2) |
Trading and misc income losses
Trading losses from crypto mining/staking business may be offset against other income under ITA 2007 S64; Miscellaneous income losses can only offset miscellaneous income of the same typeITA 2007 S64
Loss Claim Window table
| Loss arising in | Must be reported by | |---|---| | 2024-25 | 5 Apr 2029 | | 2025-26 | 5 Apr 2030 | | 2026-27 | 5 Apr 2031 |
30-day rule
Unchanged across all three years. If a taxpayer disposes of tokens and reacquires tokens of the same type within 30 days after the disposal, the disposal is matched to the reacquisition (not the S104 pool).TCGA 1992 S106A
Same-day rule
If tokens are both acquired and disposed of on the same day, the disposal is matched to the same-day acquisition first.TCGA 1992 S105
GAAR
The GAAR (Finance Act 2013 Part 5) may apply to artificial crypto tax avoidance arrangements.Finance Act 2013 Part 5
Date manipulation scrutiny
For 2024-25, HMRC will scrutinise late-October 2024 disposal dates given the rate increase from 30 Oct 2024. The contract date of disposal (not settlement date) governs which rate applies. Backdating risks penalty exposure and potential GAAR application.
Rendered from the canonical facts model · facts last reviewed Jun 3, 2026. General reference only — confirm with a qualified professional before acting.
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