How UK crypto tax works (capital gains, 2026/27)
In the UK, most crypto is taxed as a capital asset, not as currency. You usually pay Capital Gains Tax (CGT) when you dispose of a coin — not when you buy it or simply hold it. This guide walks through the whole picture for the 2026/27 tax year.
When a “disposal” happens
A disposal is any time you part with a crypto asset. HMRC treats far more than just cashing out as a disposal — several common actions are taxable events even when no sterling changes hands.
- Selling crypto for fiat (GBP, USD, EUR).
- Swapping one crypto for another — a crypto-to-crypto trade is a disposal of the coin you give up.
- Spending crypto on goods or services.
- Gifting crypto to anyone other than your spouse or civil partner.
How the gain is calculated
Your gain is the disposal proceeds (the GBP value you received, or the market value of the coin received in a swap) minus your allowable cost. Allowable cost is the pooled cost of the coins you disposed of plus incidental costs like exchange and gas fees (TCGA 1992 s.38).
Coins of the same type are not tracked as individual lots. They are combined into a Section 104 pool with a single running average cost — though same-day and 30-day acquisitions are matched first. Those matching rules are the part most people get wrong.
The allowance and the rates
For 2026/27 the Annual Exempt Amount is £3,000 — the total net gain you can make across all assets before any CGT is due. Gains above the allowance are taxed at 18% to the extent they fall within your basic-rate band, and 24% above it.
CGT stacks on top of your income. For 2026/27 the basic-rate band is £37,700 of taxable income (broadly, total income up to £50,270 once the £12,570 personal allowance is counted). Your taxable income uses up the band first, then your gains — after the £3,000 allowance — fill whatever is left; a gain that crosses the top of the band is split, part at 18% and part at 24%.
Reporting on your Self Assessment
You report crypto disposals on the SA108 capital gains pages of your Self Assessment return. You must report if your total proceeds for the year exceed £50,000 or your gains exceed the Annual Exempt Amount — even if no tax is due after the allowance.
The deadline is 31 January following the end of the tax year (31 October for a paper return). Maneta fills boxes 14–22 of the SA108 for you and keeps the working behind every figure.