Crypto Tax UK: Do I Have to Pay Tax?
Crypto tax in the UK can be confusing — especially if you’re unsure when tax actually applies. HMRC treats crypto as a type of property, not currency, which means you could owe Capital Gains Tax or Income Tax depending on how you use it.
This guide breaks it down in plain English.
When You Might Owe Crypto Tax
Here are the most common situations where tax might apply:
🔢 You might owe Capital Gains Tax if you:
- Sell crypto for GBP
- Swap one crypto for another (e.g. ETH for BTC)
- Spend crypto on goods or services
- Gift crypto to someone other than your spouse
You’ll only pay tax if your gains go over your tax-free allowance for the year (£3,000 in 2025).
🪙 You might owe Income Tax if you:
- Get paid in crypto in the UK
- Earn staking or mining rewards
- Receive airdrops (in some cases)
If it looks like income, HMRC will usually treat it like income.
What If I Haven’t Sold Anything?
If you’re just holding crypto — whether on an exchange or in a wallet — and haven’t sold, swapped, or spent it, you don’t owe tax yet. HMRC only taxes you when there is a disposal, meaning an action that creates a gain or triggers income.
So if you bought crypto and haven’t touched it since, you’re likely in the clear for now.
How Much Tax Will You Pay?
- Capital Gains Tax (CGT) is typically:
- 10% if you’re a basic rate taxpayer
- 20% if you’re in the higher or additional rate bracket
- Income Tax depends on your total annual income and follows regular UK bands:
- 20% (basic)
- 40% (higher)
- 45% (additional)
These rates apply to the GBP value of the gain or income at the time of the transaction.
Do I Need to File a Tax Return?
You must submit a Self Assessment tax return if:
- You made crypto gains above the £3,000 CGT allowance
- You earned crypto income (like staking rewards or payments)
- HMRC has sent you a notice to file
Even if you don’t owe anything, you still need to keep records in case HMRC asks for them.
What Records Do I Need to Keep?
HMRC expects crypto users to keep detailed records of all transactions:
- Dates of purchase and sale/disposal
- GBP value at the time of each event
- Type and quantity of crypto asset
- What the transaction was (buy, sell, swap, earn, spend)
- Associated wallet or exchange details
If you’re trading frequently or using multiple platforms, this can get tricky fast — which is why many people turn to crypto tax tools. These are designed to take the stress and uncertainty out of managing your crypto assets.
Tools That Can Help
Crypto tax tools are purpose-built to help you stay compliant with HMRC. They connect to your exchanges and wallets and help you:
- Track your portfolio
- Calculate capital gains and income
- Generate HMRC-compliant tax reports
Some of the most popular options for UK users include:
- Koinly
- CoinTracker
- Accointing
👉 See our crypto tax uk tool comparison to find the best one for your needs.
Final Thoughts
If you’ve made money from crypto in the UK, chances are HMRC wants to know about it. But understanding when you owe tax — and what kind — doesn’t have to be overwhelming.
- Holding crypto? No tax yet.
- Selling or swapping? Could be Capital Gains.
- Earning through staking or work? Could be Income.
Use a tool to help with tracking and reporting, and if you’re unsure, check our full guide to UK crypto tax or get in touch with questions.
This article is for informational purposes only and not financial advice. Always speak to a qualified tax professional for personal guidance.