Do I pay tax on cryptocurrency in the UK?
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In short: Usually yes. HMRC treats most crypto as an asset, so selling, swapping or spending it can trigger Capital Gains Tax on gains above the £3,000 annual exempt amount (2026/27). Crypto from mining, staking, airdrops or as payment is taxed as income instead.
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Reviewed by Kaiser Khan
HMRC does not treat cryptoassets as currency. For most people, buying and holding crypto is not taxable — but disposing of it is. A disposal includes selling for pounds, swapping one token for another, spending crypto on goods or services, or gifting it to anyone other than your spouse or civil partner. The gain (sale value minus what you paid, pooled under HMRC's share-matching rules) is subject to Capital Gains Tax.
The CGT annual exempt amount is £3,000 for 2026/27. Gains above that are taxed at 18% if you are a basic-rate taxpayer and 24% if you are a higher- or additional-rate taxpayer (the rates that have applied to non-property assets since 30 October 2024).
Crypto received as income — from mining, staking rewards, airdrops for a service, or being paid in crypto — is subject to Income Tax and possibly National Insurance based on its sterling value when received. You report crypto on a Self Assessment return; the £1,000 trading allowance and the capital-gains rules are separate, so keep dated records of every transaction.
Primary source: gov.uk/government/publications/tax-on-cryptoassets
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