Crypto Tax UK 2026 — Complete HMRC Guide, Capital Gains, Income Tax, Reporting

⚡ Read this before you open your next trade

**UK crypto tax 2026** = HMRC treats crypto as **asset** (similar to shares). Two taxes apply: **Capital Gains Tax (CGT)** for trading and **Income Tax** for crypto received as income. **CGT 2026 rates**: 1) **Allowance**: £3,000/year tax-free (reduced from £6,000 in 2024). 2) **Basic rate** (income <£50,270): 10% CGT. 3) **Higher rate** (income £50,270+): 20% CGT. **Income Tax for crypto income** (mining, staking, salary): 0-45% based on income brackets. National Insurance (NI) may also apply for trading-as-business. **CGT taxable events**: 1) Sell crypto for GBP. 2) Trade crypto for crypto (BTC → ETH = disposal of BTC). 3) Spend crypto on goods/services. 4) Gift crypto (except to spouse — exempt). **Income Tax events**: 1) Mining rewards. 2) Staking rewards (HMRC view: income at receipt, then CGT on disposal). 3) Salary in crypto. 4) Airdrops in exchange for service (income). 5) Hard forks (debated, generally CGT). **Share pooling rules** (UK-specific): UK uses **Section 104 pooling**. All units of same crypto pooled together with average cost basis. Different from FIFO/LIFO. **Same-day rule**: If buy and sell same crypto same day = match those trades first. **30-day rule ("bed and breakfast")**: If sell crypto, then buy back same crypto within 30 days = matched against that purchase, NOT pool. Prevents tax loss harvesting via instant rebuy. **Calculating gain example**: 1) Buy 1 BTC at £20,000 (pool: £20,000 / 1 = £20,000 avg). 2) Buy 1 BTC at £40,000 (pool: £60,000 / 2 = £30,000 avg). 3) Sell 1 BTC at £50,000. Gain = £50,000 - £30,000 = £20,000. After £3k allowance = £17k taxable. Higher rate: 20% × £17k = £3,400 CGT. **DeFi taxation**: 1) Lending (Aave, Compound): interest = INCOME at receipt. 2) Yield farming: complex. Generally INCOME at receipt + CGT on token disposals. 3) LP tokens: HMRC view varies. Conservative: CGT on LP token receipt. 4) Wrapped tokens (WBTC ↔ BTC): HMRC views as DISPOSAL = CGT event. **Crypto tax software UK**: 1) **Koinly UK**: HMRC-compliant reports. £49-279/year. 2) **Recap**: UK-focused. £159-590/year. 3) **CoinTracker**: works for UK. £49-279/year. 4) **CryptoTaxCalculator**: formerly CryptoCom Tax. £49-249/year. **Reporting**: 1) **Self Assessment** (SA100). Capital Gains pages (SA108) for CGT. Income pages for crypto income. 2) **Filing deadline**: October 31 (paper) or January 31 (online) following tax year (April 6 - April 5). 3) **Pay tax**: due January 31. **Penalties for non-reporting**: 1) Late filing: £100 immediate + £10/day after 3 months. 2) Inaccuracy: 0-100% of tax owed. 3) Deliberate evasion: criminal prosecution. **Tax optimization UK**: 1) **Use £3k CGT allowance annually**: realize £3k gains tax-free each year. 2) **Spousal transfer**: gift crypto to spouse to use their allowance. 3) **Bed and ISA**: sell crypto, buy share ETF in ISA = no CGT (ISA tax-free). 4) **Loss harvesting** (subject to 30-day rule): realize losses, offset gains. Cannot rebuy same crypto for 30 days. 5) **EIS/SEIS investment**: if eligible, defer CGT via EIS reinvestment. 6) **Crypto SIPP**: limited UK options. Self-invested pension with crypto. **For UK-based traders**: combine [Vantage](https://vigco.co/la-com-inv/CE3HlGvG) for forex CFDs + crypto exchange (Kraken UK, Coinbase UK) for spot crypto. Keep accurate records. This 2026 guide covers: HMRC rules, calculations, software, optimization.

Kacper Mruk4 min readUpdated: April 17, 2026