How to Report Crypto Tax to HMRC (Capital Gains + Income)
HMRCHM Revenue & Customs — The UK tax authority. It collects income tax, issues National Insurance numbers, and runs Self Assessment.Click for official info ↗ taxes crypto like any other asset: Capital Gains Tax when you sell or swap at a profit, Income Tax on staking rewards and mining. Most people only need the CGT pages of a Self AssessmentUK Self Assessment tax return — The system for reporting income that is not taxed at source — self-employment, rent, foreign income — to HMRC by 31 January each year.Click for official info ↗ return — and good records of every trade.
The Steps
Follow these in order
Each card shows the phase, expected time, and any cost. Data checked against official UK sources(2025-Latest).
0 of 6 steps
- Before You Go 30 min
Know which events are taxable
Taxable (CGT): selling crypto for fiat, swapping one crypto for another, spending crypto on goods, gifting it (except to a spouse). NOT taxable: buying crypto with fiat, transferring between your own wallets, holding. Separately, Income Tax applies to staking rewards, mining proceeds, and some airdrops, taxed as miscellaneous income at your marginal rate.
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- Before You Go 15 min
Check against the £3,000 allowance
The Capital Gains Tax-free allowance is £3,000 (2024/25, down from £6,000). Gains above that are taxed at 10% (basic-rate) or 20% (higher-rate) for crypto. If your total gains are under £3,000 you generally do not need to report — unless proceeds from sales exceed £50,000 in the tax year, which triggers reporting anyway.
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- Fill / Prepare 1–2 hours
Calculate gains with the matching rules
HMRCHM Revenue & Customs — The UK tax authority. It collects income tax, issues National Insurance numbers, and runs Self Assessment.Click for official info ↗ mandates matching order: same-day trades first, then purchases within the following 30 days (the "bed and breakfast" rule — rebuying within 30 days does NOT reset your cost basis), then the rest of your pool (Section 104). Crypto tax software (Koinly, Recrypto, CryptoTaxCalculator) automates this from exchange CSVs.
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- Fill / Prepare 45 min
Handle DeFi, staking, and lost crypto
Staking rewards: Income Tax on the sterling value at receipt. DeFi lending/liquidity provision: HMRCHM Revenue & Customs — The UK tax authority. It collects income tax, issues National Insurance numbers, and runs Self Assessment.Click for official info ↗ treats returns as income and the underlying transactions may create disposals — this is genuinely complex, keep full records. Lost or stolen crypto: negligible-value claims may apply. NFTs: CGT separately, no pooling with other tokens.
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- Submit & Pay 30 min
Report through Self Assessment
File the Capital Gains summary pages (SA108) with your Self AssessmentUK Self Assessment tax return — The system for reporting income that is not taxed at source — self-employment, rent, foreign income — to HMRC by 31 January each year.Click for official info ↗ return by 31 January following the tax year. Since 2024, HMRCHM Revenue & Customs — The UK tax authority. It collects income tax, issues National Insurance numbers, and runs Self Assessment.Click for official info ↗ asks crypto questions on the return directly. First time filing? Register for Self AssessmentUK Self Assessment tax return — The system for reporting income that is not taxed at source — self-employment, rent, foreign income — to HMRC by 31 January each year.Click for official info ↗ by 5 October — late registration itself draws penalties.
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- Follow Up 15 min
Keep records for 5+ years
HMRCHM Revenue & Customs — The UK tax authority. It collects income tax, issues National Insurance numbers, and runs Self Assessment.Click for official info ↗ requires crypto records kept for at least 5 years after the 31 January submission deadline. Exchanges can shut down (several have) and history becomes unrecoverable — export your CSVs now, not when HMRCHM Revenue & Customs — The UK tax authority. It collects income tax, issues National Insurance numbers, and runs Self Assessment.Click for official info ↗ asks. Missing records means HMRCHM Revenue & Customs — The UK tax authority. It collects income tax, issues National Insurance numbers, and runs Self Assessment.Click for official info ↗ estimates your gains, usually against you.
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FAQ
Frequently Asked Questions
Do I pay tax just for holding crypto?
No. Holding and transferring between your own wallets are not taxable events. Tax arises when you dispose — sell, swap, spend, or gift (spouse gifts excepted).
I only traded crypto-to-crypto and never cashed out. Is that taxable?
Yes — swapping one crypto for another is a disposal of the first asset, just like trading shares. This surprises many people; every BTC-to-ETH swap is a separate chargeable disposal with its own gain or loss.
HMRC already sent me a "nudge" letter about crypto. What now?
Do not ignore it — HMRCHM Revenue & Customs — The UK tax authority. It collects income tax, issues National Insurance numbers, and runs Self Assessment.Click for official info ↗ has exchange data via information requests and opens formal enquiries on non-responders. Reply with either a disclosure (using the Digital Disclosure Service or via an agent) or an explanation of why no tax is due. Voluntary disclosure nearly always means lower penalties than being caught.
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