Crypto Tax Changes for the 2025/26 UK Tax Year: What You Need to Know

🔍 Key Changes for 2025/26

📉 Reduced Capital Gains Tax (CGT) Allowance

The CGT annual exemption has been reduced to £3,000 for the 2025/26 tax year, down from £6,000 in 2023/24 and £12,300 in 2022/23. This means more crypto investors will now fall within the taxable bracket.

📈 Increased CGT Rates

For disposals made on or after 30 October 2024, CGT rates have increased:

  • Basic rate taxpayers: from 10% to 18%
  • Higher and additional rate taxpayers: from 20% to 24%

These rates apply to crypto asset disposals, aligning them with other asset classes.

📒 Mandatory Separate Reporting of Crypto Transactions

Starting 6 April 2025, HMRC requires all crypto transactions to be reported separately in the Self Assessment tax return. This includes:

  • Buying and selling crypto
  • Exchanging one cryptocurrency for another
  • Using crypto to purchase goods or services
  • Gifting crypto (excluding to a spouse or civil partner)

This change aims to increase transparency and ensure accurate tax reporting.

📬 HMRC’s Enhanced Compliance Measures

HMRC has intensified its compliance efforts, including sending “nudge” letters to taxpayers suspected of underreporting crypto gains. Additionally, from 2026, HMRC will automatically receive data from crypto exchanges under the Crypto-Asset Reporting Framework, further tightening oversight.

💡 What This Means for You

  • Increased Tax Liability: With lower allowances and higher rates, your tax obligations on crypto gains may be higher.
  • Enhanced Reporting Requirements: Accurate and detailed record-keeping of all crypto transactions is now more critical than ever.
  • Greater HMRC Scrutiny: Expect increased monitoring and potential inquiries from HMRC regarding your crypto activities.

✅ Action Steps

  1. Maintain Detailed Records: Keep comprehensive records of all crypto transactions, including dates, amounts, and counterparties.
  2. Utilize Tax Software: Consider using crypto tax software like Koinly to simplify tracking and reporting.
  3. Consult a Tax Professional: Seek advice from a tax advisor experienced in crypto assets to ensure compliance and optimize your tax position.

Stay informed, stay compliant, and make smart decisions for the 2025/26 tax year.

Looking for help filing your crypto taxes? Here’s a comparison of the best crypto tax tools for UK investors.

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