Correction, September 7, 2026: We corrected an outdated £12,000 disposal-reporting threshold and a property-specific 60-day deadline that had been applied to crypto. We also removed blanket DeFi income treatment and unsupported planning claims. This overview concerns individuals holding crypto as investments; business and employment income can require different treatment.
Disposals, rates and the allowance
Selling crypto, exchanging it for another token and spending it can create a disposal for Capital Gains Tax. Moving assets between wallets you own is different from changing beneficial ownership. Calculate in pounds sterling rather than waiting until money reaches a bank account. HMRC’s crypto disposal guidance.
For 2026/27, the individual annual exempt amount is £3,000 across relevant gains, not £3,000 per token or exchange. Allowable losses and reliefs can affect the calculation. Capital Gains Tax allowances.
For gains covered by the standard rates, the amount fitting within the unused basic-rate band is charged at 18%; the portion above it is charged at 24%. A basic-rate income taxpayer does not automatically pay 18% on every pound of a large gain. Current CGT rates and worked examples.
Match acquisitions before using a pooled cost
For fungible tokens, HMRC generally uses a separate Section 104 pool for each type. Same-day acquisitions and acquisitions within the following 30 days take precedence over the pool. Do not apply a pooled average before checking those matching rules. HMRC’s pooling guidance.
Here is a simplified calculation with no same-day or following-30-day acquisitions and no fees:
| Step | Tokens in pool | Total pooled cost |
|---|---|---|
| Buy 1 BTC for a total £20,000 | 1 BTC | £20,000 |
| Later buy 1 BTC for a total £40,000 | 2 BTC | £60,000 |
| Sell 0.5 BTC for total proceeds of £25,000 | 1.5 BTC | £45,000 remaining |
The cost allocated to the disposal is 0.5 / 2 × £60,000 = £15,000. The gain before losses, reliefs and the allowance is therefore £25,000 − £15,000 = £10,000. Keep total transaction cost distinct from price per coin; mixing them produces a wrong pool.
Reporting is separate from owing tax
If total taxable gains exceed the allowance, reporting and payment are required. If gains are below the allowance but you are registered for Self Assessment, the disposal-proceeds reporting threshold is more than £50,000 for 2023/24 onwards. The old four-times-the-allowance rule does not give a current £12,000 threshold. HMRC’s reporting test.
Crypto gains can be reported through Self Assessment or the applicable real-time CGT service. The 60-day UK-property rule should not be copied into crypto instructions. Check the current deadlines for the route and tax year you use. Reporting and paying CGT.
Staking and DeFi need transaction-specific analysis
Do not assume every return called yield is taxable in the same way. HMRC considers the economic nature of a DeFi return when distinguishing income from capital. Whether a transfer changes beneficial ownership can also affect disposal treatment. Preserve the protocol terms as well as transaction hashes. HMRC on the nature of DeFi returns.
A practical record set
Keep the date, token quantities, GBP valuations, acquisition costs, fees, wallet movements and exchange exports together. Record how you obtained each valuation and keep the underlying transactions when software produces a tax report. A dashboard’s current balance cannot reconstruct years of acquisition costs.
For terminology, use our crypto glossary. A UK tax adviser can assess unusual transactions, residency and business activity. This is general information, not personal tax advice. Linked official guidance was checked on September 7, 2026.
