UK Crypto Tax Guide 2026: Capital Gains, Income Tax, and Reporting

UK Cryptocurrency Tax Treatment in 2026

HMRC treats cryptocurrency as a capital asset for most individuals, meaning disposal events trigger Capital Gains Tax (CGT). However, certain activities — such as mining, staking rewards, and receiving tokens as income — are treated as income subject to Income Tax and National Insurance Contributions.

Taxable Events for Crypto

• Selling cryptocurrency for fiat (GBP or other currency)
• Exchanging one cryptocurrency for another
• Using cryptocurrency to purchase goods or services
• Gifting cryptocurrency (except to spouse/civil partner)
• Staking rewards and mining income
• Receiving tokens through DeFi lending or liquidity provision

Capital Gains Tax Rates

For 2026, CGT rates on crypto gains follow the standard rates: 10% for basic rate taxpayers and 20% for higher rate taxpayers. The annual exemption amount has been reduced, so more gains will be subject to tax than in previous years.

Calculating Gains

Use the share identification rules: same-day acquisitions are matched first, then acquisitions within 30 days (bed and breakfasting), then the section 104 pool for remaining tokens. This prevents artificial loss creation through rapid buying and selling.

Frequently Asked Questions

Do I need to report crypto on my Self Assessment?

Yes, if your total gains exceed the annual exemption, or if the proceeds from disposals exceed four times the exemption amount, you must report on your Self Assessment tax return.

Is transferring crypto between my own wallets taxable?

No, transfers between your own wallets are not taxable disposal events. However, you must maintain records showing the same beneficial ownership throughout.