HMRC treats crypto as property, so you pay Capital Gains Tax when you sell, swap, or spend at a profit above the annual allowance. Here is how UK crypto tax works.
In the UK, HMRC treats crypto as property, not currency. You pay Capital Gains Tax when you sell, swap, or spend crypto at a profit above the annual exempt amount, which is 3,000 pounds for 2025/26. Gains are taxed at 18 percent or 24 percent depending on your income band. Crypto income, such as staking or mining, is taxed separately as income.
This is general information, not tax advice. Rules and rates change, and your situation is specific to you. Check HMRC's cryptoassets guidance or a qualified accountant before filing.
Tax is due on a disposal, which is any time you part with crypto. That includes:
Simply buying and holding crypto is not taxable. The tax event happens when you dispose of it.
After the 3,000 pound annual exempt amount, gains are taxed at 18 percent if you are a basic-rate taxpayer and 24 percent if you are a higher or additional-rate taxpayer. You only pay on the gain, not the whole amount you sell.
Some crypto is taxed as income rather than as a capital gain:
From January 2026, UK exchanges must collect and report your crypto data to HMRC under the Crypto-Asset Reporting Framework, with the first reports due in 2027. In short, assume HMRC can see your trades and report accurately.
See which exchanges work for UK residents and which payment rails are cheapest.
Buy crypto in the UKYes, when you dispose of it at a profit above the 3,000 pound annual allowance. Buying and holding is not taxed; selling, swapping, or spending is.