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 thing you own. You pay Capital Gains Tax when you sell or swap it for a profit. You pay Income Tax on staking rewards and on mining. Most people only need to fill in 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. You also need good records of every trade.
At a glance
- Cost:
- Free (self-file) to £150+ (accountant)
- Total time:
- 2–4 hours
- Steps:
- 6 steps
- Where to apply:
- gov.uk
Last reviewed November 2026 against official sources. Re-checked every 6 months · next review due May 2027.
The Steps
Follow these in order
Each card shows the phase, expected time, and any cost. Data checked against official UK sources(November 2026).
0 of 6 steps
- Before You Go 30 min
Know which events are taxable
You pay CGT on these. Selling crypto for cash. Swapping one crypto for another. Spending crypto on goods. Giving it as a gift, except to a spouse. You do not pay tax on these. Buying crypto with cash. Moving crypto between your own wallets. Holding it. You pay Income Tax on staking rewards. You also pay it on money from mining and on some airdrops. HMRC taxes these as income at your marginal rate.
Click to mark as done
- 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). You pay tax on gains above that. The rate is 18% (basic-rate) or 24% (higher-rate) for crypto since 30 October 2024. If your total gains are under £3,000 you usually do not need to report them. But you must report if the money from your sales is more than £50,000 in the tax year. In that case you must report anyway.
Click to mark as done
- Fill / Prepare 1–2 hours
Calculate gains with the matching rules
HMRC has a set order for matching. First, match same-day trades. Next, match buys in the next 30 days. This is the "bed and breakfast" rule. If you buy again within 30 days, it does NOT reset your cost basis. Then match the rest of your pool (Section 104). Crypto tax software (Koinly, Recrypto, CryptoTaxCalculator) does this work for you. It uses your exchange CSVs.
Click to mark as done
- Fill / Prepare 45 min
Handle DeFi, staking, and lost crypto
Staking rewards: you pay Income Tax on the value in pounds when you get them. DeFi lending and liquidity provision: HMRC treats what you earn as income. The deals under it may count as disposals. This is truly complex. Keep full records. Lost or stolen crypto: you may be able to make a negligible-value claim. NFTs: CGT applies on its own. You do not pool NFTs with other tokens.
Click to mark as done
- Submit & Pay 30 min
Report through Self Assessment
File the Capital Gains summary pages (SA108) with your Self Assessment return. Do this by 31 January after the tax year ends. Since 2024, HMRC asks crypto questions on the return itself. Is this your first time filing? Register for Self Assessment by 5 October. If you register late, you may have to pay penalties. From 2027, HMRC gets your data another way too. Under the Cryptoasset Reporting Framework, UK exchanges have had to collect your details since 1 January 2026, and their first report to HMRC is due by 31 May 2027. It covers your 2026 trades. So do not assume HMRC will not see them.
Click to mark as done
- Follow Up 15 min
Keep records
HMRC says you must keep crypto records for at least 1 year after the 31 January deadline for sending your return. It is safer to keep them for longer. HMRC can open enquiries into earlier years. Exchanges can shut down. Several have. Then you cannot get your history back. Export your CSVs now. Do not wait until HMRC asks. If records are missing, HMRC will estimate your gains. This usually works against you.
Click to mark as done
Be Careful
Don't make these mistakes
Thinking a crypto to crypto swap is not taxable. When you swap one crypto for another, it counts as a disposal of the first one. Every BTC-to-ETH swap is a separate chargeable disposal. Each one has its own gain or loss.
Thinking only cashing out counts as a disposal. You pay CGT on selling crypto for cash, swapping one crypto for another, spending crypto on goods, and giving it as a gift, except to a spouse. You do not pay tax on buying crypto with cash, moving crypto between your own wallets, or holding it.
Thinking buying back within 30 days resets your cost basis. HMRC has a set order for matching. First, match same-day trades. Next, match buys in the next 30 days. This is the bed and breakfast rule. If you buy again within 30 days, it does NOT reset your cost basis. Then match the rest of your pool (Section 104).
Thinking gains under £3,000 never need reporting. The Capital Gains Tax-free allowance is £3,000. If your total gains are under £3,000 you usually do not need to report them. But you must report if the money from your sales is more than £50,000 in the tax year. In that case you must report anyway.
Waiting until HMRC asks for your records, or ignoring a nudge letter. Export your CSVs now. Do not wait until HMRC asks. Exchanges can shut down, then you cannot get your history back. If records are missing, HMRC will estimate your gains. This usually works against you. Do not ignore a nudge letter. Reply to the letter, make a disclosure, or explain why no tax is due.
FAQ
Frequently Asked Questions
Do I pay tax just for holding crypto?
No. Holding crypto is not a taxable event. Moving it between your own wallets is not one either. Tax starts when you dispose of it. That means you sell it, swap it, spend it, or give it as a gift. Gifts to a spouse are an exception.
I only traded crypto-to-crypto and never cashed out. Is that taxable?
Yes. When you swap one crypto for another, it counts as a disposal of the first one. It is just like trading shares. This surprises many people. Every BTC-to-ETH swap is a separate chargeable disposal. Each one has its own gain or loss.
HMRC already sent me a "nudge" letter about crypto. What now?
Do not ignore it. Since 1 January 2026, UK cryptoasset service providers must report customer transaction data to HMRC under the Cryptoasset Reporting Framework. The first reports are due 31 May 2027 as set out in the rules. HMRC also has exchange data from information requests. HMRC opens formal enquiries on people who do not reply. Reply to the letter. You can make a disclosure, using the Digital Disclosure Service or through an agent. Or you can explain why no tax is due. If you tell HMRC yourself, you will almost always pay lower penalties than if HMRC catches you.
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