A comprehensive summary of HMRC’s published Cryptoassets Manual: CGT on disposals, income tax on staking and mining, Section 104 pooling, situs rules, CARF, DeFi, NFTs and how to report on SA108 — with five years of official rates and direct GOV.UK links.
All figures from HMRC’s published guidance. Verify at GOV.UK.
This guide summarises HMRC’s Cryptoassets Manual on GOV.UK. Every section links to the relevant HMRC source. It is not tax guidance — always verify your position and speak with a qualified tax professional.
According to HMRC’s Cryptoassets Manual on GOV.UK, cryptoassets are treated as property — not currency. Almost every interaction creates a UK tax event. HMRC has maintained this position since 2018 and has significantly increased enforcement through CARF and CRS data since 2024.
According to HMRC’s Cryptoassets Manual, cryptoassets are treated as property for CGT purposes — not as money or foreign currency. This applies to: exchange tokens (Bitcoin, Ether), utility tokens, security tokens, NFTs, stablecoins, and tokens from staking, mining and airdrops.
HMRC’s manual states a disposal occurs when you: sell crypto for fiat; swap one crypto for another; spend crypto on goods/services; or gift crypto (other than to a spouse or civil partner). A crypto-to-crypto swap triggers CGT even if no fiat currency is involved. Source: GOV.UK.
Moving crypto between your own wallets or exchanges is not a disposal if you retain beneficial ownership. There is no CGT event when transferring between addresses you control. Source: HMRC CRYPTO22100.
Per HMRC’s published CGT rates, from 30 October 2024 the rates are 18% (basic rate) and 24% (higher/additional rate) on cryptoassets. CGT is payable on the gain: disposal proceeds minus allowable acquisition cost (calculated via HMRC’s pooling rules), transaction fees, and professional costs directly related to the disposal.
Illustrative only using HMRC’s published rates applied to hypothetical figures. Not tax guidance.
| Transaction | HMRC treatment | CGT event? |
|---|---|---|
| Selling for GBP/USD/EUR | Disposal at proceeds | Yes |
| Swapping crypto for crypto | Disposal of first asset at sterling value of second | Yes |
| Spending on goods/services | Disposal at market value at point of spending | Yes |
| Gift to spouse/civil partner | No gain/no loss transfer | No |
| Gift to anyone else | Disposal at market value | Yes |
| Staking/mining rewards | Income Tax at receipt; CGT on future disposal | On disposal |
According to HMRC’s Cryptoassets Manual, each type of crypto is treated as a single Section 104 pool with an average cost per unit across all acquisitions. Three rules apply in sequence — the same share-matching rules as UK equities:
Acquisitions on the same day as a disposal are matched to that disposal first, before the 30-day rule or pool is considered.
Acquisitions of the same crypto within 30 days after a disposal are matched to that disposal using the new acquisition cost. This prevents selling to crystallise a loss and immediately rebuying to reset the pool cost.
Any remaining disposal is matched against the pool. Allowable cost = (total pool cost ÷ pool tokens) × tokens disposed. Pool cost and token count are then updated.
Illustrative only. Not tax guidance — apply same-day and 30-day rules before pool matching.
According to HMRC’s Cryptoassets Manual, certain crypto receipts are subject to Income Tax at the individual’s marginal rate (20%, 40% or 45%). The value at receipt also establishes the acquisition cost for future CGT on disposal.
| Receipt type | HMRC treatment | Acquisition cost for CGT |
|---|---|---|
| Staking rewards | Miscellaneous Income Tax | Sterling value at receipt |
| Mining (occasional) | Miscellaneous Income Tax | Sterling value at receipt |
| Mining (commercial trade) | Income Tax + Class 4 NICs | Sterling value at receipt |
| Airdrop (for service) | Income Tax | Sterling value at receipt |
| Airdrop (no conditions) | May be capital — see HMRC manual | Nil or sterling value |
| Salary/bonus in crypto | Employment income + PAYE/NICs | Sterling value at receipt |
Source: HMRC Cryptoassets Manual
According to HMRC’s Cryptoassets Manual, DeFi activities can create taxable events. HMRC’s position is that the tax treatment depends on whether tokens are transferred or merely locked.
HMRC consulted in 2023 on a “no gain, no loss” framework for DeFi lending and staking. However, this is not yet law. Until legislation changes, the strict “beneficial ownership” test continues to apply. If you transfer beneficial ownership of tokens into a liquidity pool or lending protocol, HMRC treats this as a chargeable disposal for CGT purposes. Source: HMRC CRYPTO61620.
HMRC acknowledges DeFi is a rapidly developing area and guidance may not cover every scenario. Complex DeFi arrangements may require case-by-case specialist analysis. GOV.UK Cryptoassets Manual.
According to HMRC’s Cryptoassets Manual, the situs of a cryptoasset is determined by the tax residency of its beneficial owner — not the exchange jurisdiction, server location or cold storage country.
Source: HMRC Cryptoassets Manual
Qualifying new residents claiming the 4-year FIG regime may claim relief on gains on cryptoassets acquired before becoming UK resident, subject to all FIG conditions being met. See our Non-Dom & FIG guide and HMRC’s FIG guidance on GOV.UK.
From 2026, HMRC’s guidance confirms that UK crypto service providers must report user transaction data to HMRC under the Crypto-Asset Reporting Framework (CARF) — an OECD standard adopted by 40+ countries. HMRC receives this data before you file your Self Assessment.
Per HMRC’s Digital Disclosure Service guidance, undeclared gains should be corrected via the DDS before HMRC contacts you. For offshore-related crypto, the WDF is the required route. Unprompted voluntary disclosure substantially reduces penalties. HMRC has issued multiple waves of crypto nudge letters since 2021.
Apply HMRC’s same-day, 30-day and Section 104 pool rules to every disposal. Convert all amounts to sterling at the spot rate or HMRC’s monthly average rate.
List staking rewards, mining rewards, service airdrops and crypto salary with sterling values at date of receipt.
Report total proceeds, total allowable costs and net gains on SA108 (or the equivalent online section). HMRC does not require a transaction-by-transaction breakdown in the return, but records must be retained. See HMRC’s SA108 notes.
Crypto income is reported in the miscellaneous income section (SA100) or on SA103 if trading income.
Online return and payment for 2025/26 due 31 January 2027. Register for SA by 5 October 2026. £100 automatic penalty for late filing even if no tax is owed. GOV.UK: SA deadlines.
Even if your net gains are below the £3,000 annual exempt amount, you must file a Self Assessment (SA108) if your total disposal proceeds exceed £50,000 in a tax year. HMRC requires disclosure of all disposals above this limit regardless of whether tax is payable. Source: GOV.UK: Who must send a tax return.
This calculator uses HMRC’s published rates: £3,000 annual exempt amount and 18% (basic) / 24% (higher/additional) CGT rates for 2025/26 and 2026/27. It is illustrative only and does not constitute tax guidance.
HMRC has issued multiple waves of crypto nudge letters since 2021, triggered by UK exchange data and, from 2026, CARF data from global exchanges. A nudge letter means HMRC has data suggesting a discrepancy — it does not mean a formal enquiry has opened.
Per HMRC’s DDS guidance, undeclared gains should be corrected via the DDS (or WDF for offshore-related crypto) before HMRC opens a formal enquiry. HMRC’s enquiry time limit for deliberate offshore non-disclosure is 20 years. See GOV.UK: offshore penalties.
Calculating crypto tax correctly — with multiple exchanges, DeFi activity and pooling adjustments — is complex. Our free matching service connects you with verified UK crypto tax specialists within 24 hours.
| Tax Year | Annual Exempt Amount | Basic rate | Higher/add. rate | Notes |
|---|---|---|---|---|
| 2022/23 | £12,300 | 10% | 20% | Pre-Budget 2024 rates |
| 2023/24 | £6,000 | 10% | 20% | AEA halved |
| 2024/25 (to 29 Oct 2024) | £3,000 | 10% | 20% | Pre-Autumn Budget 2024 |
| 2024/25 (from 30 Oct 2024) | £3,000 | 18% | 24% | Autumn Budget 2024 increase |
| 2025/26 | £3,000 | 18% | 24% | Confirmed |
| 2026/27 | £3,000 | 18% | 24% | Confirmed |
Source: GOV.UK — CGT rates
| Tax Year | Online filing & payment deadline | SA registration deadline |
|---|---|---|
| 2022/23 | 31 January 2024 | 5 October 2023 |
| 2023/24 | 31 January 2025 | 5 October 2024 |
| 2024/25 | 31 January 2026 | 5 October 2025 |
| 2025/26 | 31 January 2027 | 5 October 2026 |
| 2026/27 | 31 January 2028 | 5 October 2027 |
This page summarises HMRC’s published guidance — not personal guidance. Crypto tax calculations require accurate transaction records, correct pooling and proper classification of income vs capital. Free matching with verified UK crypto tax specialists within 24 hours.
Based on HMRC’s published Cryptoassets Manual. Not tax guidance — verify with a qualified professional.
SRT, situs rules for overseas assets, FIG regime and how residency affects your crypto tax position.
Expat guide →How the FIG regime may cover crypto gains for qualifying new residents in their first four years.
Non-dom guide →What crypto nudge letters mean and HMRC’s required disclosure routes — DDS and WDF.
Nudge letter guide →DAC7 platform reporting, trading allowance and Self Assessment for digital income earners.
Side hustle guide →All cross-border and special situations topics in one place.
View hub →Free matching with verified UK crypto tax specialists — within 24 hours, no obligation.
Find a specialist →This page summarises HMRC’s published rules — not personal guidance. Free matching with verified UK crypto tax specialists for guidance on your specific situation.
Speak to a specialist →Information only — not tax or financial guidance. This page summarises HMRC’s published Cryptoassets Manual. Nothing constitutes personal tax guidance. Always verify on GOV.UK and consult a qualified tax professional before acting.
