Do I need to report crypto even if I made a loss?

You must report crypto losses to HMRC to register them for future offset against gains — even if you have no tax to pay. Losses must be claimed within 4 years of the end of the tax year in which they occurred. Registered losses can be carried forward indefinitely to reduce future crypto gains.

Is swapping one crypto for another a taxable event?

Yes. HMRC treats every crypto-to-crypto swap as a disposal of the first asset and an acquisition of the second at market value. So swapping Bitcoin for Ethereum triggers a CGT calculation on the Bitcoin disposal, using the market value of the Ethereum received as the proceeds.

What is Section 104 pooling for crypto?

Section 104 pooling means HMRC treats all your holdings of the same cryptocurrency as a single pool with an average cost basis. When you sell, you use the average cost of all your purchases (adjusted for additions and disposals) rather than specific lot identification. This is separate from the 30-day rule which takes priority.

₿ Crypto Tax 2026/27

UK Crypto Tax Calculator

Calculate Capital Gains Tax on Bitcoin, Ethereum and other crypto assets using HMRC's 2026/27 rules — including the £3,000 allowance and 18%/24% rates.

Your details

Income tax band

Tax year

Other capital gains this year (£)

Include any property or share gains already made this year

Crypto transactions

📊 2026/27 Crypto CGT Rates

Annual CGT allowance£3,000

Basic rate taxpayers18%

Higher rate taxpayers24%

Report & pay deadline31 Jan 2028

→ Also try our property CGT calculator

⚠️ Key HMRC rules

Swapping crypto-to-crypto is a taxable disposal
Spending crypto on goods/services is a disposal
30-day rule: buying back within 30 days uses new price
Section 104 pooling: use average cost basis
Losses must be reported to HMRC to carry forward
Mining, staking, and airdrops may be Income Tax, not CGT

📋 What counts as a disposal?

✅ Selling crypto for GBP or other fiat
✅ Swapping one crypto for another
✅ Using crypto to buy goods or services
✅ Gifting crypto (except to spouse)
❌ Transferring between your own wallets
❌ Gifting to spouse or civil partner
❌ Buying crypto with fiat

How HMRC taxes cryptocurrency in the UK

HMRC does not consider cryptocurrency to be currency or money. Instead, it treats crypto assets as a form of property subject to Capital Gains Tax when disposed of. This applies regardless of which cryptocurrency you hold — Bitcoin, Ethereum, and all other tokens are treated the same way.

You pay CGT on your gain — the difference between what you received when you sold or disposed of the crypto and what you originally paid for it (including transaction fees). The gain is added to your other income to determine whether you pay the 18% or 24% rate.

HMRC's three matching rules

HMRC uses a specific set of matching rules to calculate cost when you hold multiple lots of the same cryptocurrency. These rules apply in strict order:

Priority	Rule	How it works
1st	Same-day rule	Disposals are matched against acquisitions on the same day first
2nd	30-day rule	Then matched against acquisitions within the following 30 days (prevents bed & breakfasting)
3rd	Section 104 pool	Remaining disposals matched against the average cost of your entire pool of that asset

Crypto income vs crypto gains

Not all crypto receipts are subject to CGT. Some crypto income is taxed as Income Tax instead:

Income Tax applies to: mining rewards (if done at a commercial scale), staking rewards, airdrops received in exchange for a service, and crypto received as employment income or from DeFi lending.

CGT applies to: selling crypto for fiat, swapping crypto-to-crypto, using crypto to pay for goods/services, gifting crypto to anyone other than a spouse.

The distinction matters significantly for tax planning — Income Tax rates (up to 45%) are considerably higher than CGT rates (18-24%).

NFTs and DeFi

NFTs (non-fungible tokens) are treated the same as other crypto assets for CGT purposes. Each NFT is a separate asset, so buying and selling NFTs generates individual CGT calculations rather than pooled averaging.

DeFi activities (liquidity provision, yield farming, wrapping tokens) are complex — HMRC treats each swap or receipt as a potentially taxable event. The tax treatment depends on whether you retain beneficial ownership throughout, which varies by protocol. Specialist advice is recommended for significant DeFi activity.

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Frequently asked questions

Do I pay tax on crypto in the UK?

Yes. HMRC treats cryptocurrency as a capital asset subject to Capital Gains Tax on disposal. This includes selling for fiat, swapping crypto-to-crypto, spending crypto, and gifting it. The annual CGT allowance is £3,000 for 2026/27.

What is the crypto tax rate in the UK 2026/27?

18% for basic rate taxpayers and 24% for higher/additional rate taxpayers, following the October 2024 Autumn Statement which aligned crypto CGT rates with residential property rates. The £3,000 annual allowance applies before any tax is due.

Is swapping Bitcoin for Ethereum taxable?

Yes. HMRC treats every crypto-to-crypto swap as a disposal of the first asset at its current market value. You calculate your gain or loss based on the market value of the crypto received, compared to your original cost of the crypto disposed of.

Do I need to report crypto losses?

Yes — you must actively report losses to HMRC to register them for future offset against gains. Report them via Self Assessment even if you have no tax to pay. Losses must be claimed within 4 years and can be carried forward indefinitely once registered.

What is the 30-day rule for crypto?

If you sell a crypto asset and buy the same asset back within 30 days, HMRC matches your sale against the new purchase price rather than your original average cost. This prevents the strategy of crystallising a loss while maintaining your position — known as bed and breakfasting.

Are staking rewards taxed as income or capital gains?

Staking rewards are generally treated as Income Tax, not CGT, at the point of receipt — taxed on their value when received. When you later dispose of the staked tokens, CGT applies on any gain above the value at which they were received and taxed as income.

Disclaimer: This calculator provides estimates based on HMRC's published 2026/27 CGT rules for crypto assets. It does not account for the 30-day rule, same-day rule, or complex DeFi/staking scenarios. For significant crypto holdings or complex transaction histories, consult a specialist crypto tax accountant. HMRC guidance on cryptoassets: gov.uk/government/publications/tax-on-cryptoassets.