Crypto Capital Gains Tax UK: Rates and Allowance 2026/27

For most individual investors, crypto capital gains tax in the UK is the main tax to understand. HMRC does not treat cryptoassets as currency; for most people they are assets, and profits on disposals are subject to Capital Gains Tax (CGT). This guide sets out the 2026/27 rates and allowance, what counts as a disposal, how HMRC's pooling rules work, and when you need to report. We have included an illustrative worked example so you can see the calculation step by step.

What counts as a disposal of crypto?

CGT only arises when you dispose of an asset. HMRC's guidance and its Cryptoassets Manual list the following as disposals:

• selling tokens for money (for example, pounds sterling)
• exchanging tokens for a different type of token, including swaps into stablecoins
• using tokens to pay for goods or services
• giving tokens away to another person

Two common exceptions:

• Gifts to a spouse or civil partner are excluded from disposal treatment, and gifts to charity are generally exempt.
• Moving tokens between wallets you control is not a disposal, although network fees paid in crypto can raise their own questions.

Crypto-to-crypto swaps catch many people out: each swap is a disposal valued in pounds at the time. Rewards from staking, mining or lending are a different matter and may be taxable as income; see our guide to reporting crypto staking and DeFi income.

Crypto capital gains tax rates in the UK (2026/27)

For disposals on or after 30 October 2024, the rates for crypto and other assets (other than those with special rules) are:

Portion of gain	Rate from 30 October 2024	Rate before 30 October 2024
Within your unused basic rate band	18%	10%
Above the basic rate band	24%	20%

How the basic rate band affects your rate

Your rate depends on your income as well as your gains. GOV.UK sets out the process: work out your taxable income (after the Personal Allowance of £12,570), deduct the annual exempt amount from your total taxable gains, then add the remaining gains on top of your income. Any part that falls within the basic rate band (£37,700 for 2026/27) is taxed at 18%; anything above it is taxed at 24%. Higher and additional rate taxpayers pay 24% on all taxable gains.

How much crypto is tax-free in the UK?

The annual exempt amount for individuals is £3,000 for 2024/25, 2025/26 and 2026/27. It applies to your total net gains across all assets in the tax year, not to each token or each sale. It is a "use it or lose it" allowance: unused amounts cannot be carried forward.

The allowance is measured in gains, not in the value of crypto you sell.

How crypto gains are worked out: allowable costs and pooling

A gain is broadly the sterling value you receive on disposal, less the allowable cost of the tokens disposed of. Allowable costs include what you paid for the tokens and, according to GOV.UK, items such as transaction fees, advertising for a buyer or seller, drawing up a contract and making a valuation.

The Section 104 pool

Because identical tokens are interchangeable, HMRC requires each type of token to be held in its own "Section 104 pool" with a single pooled allowable cost. When you dispose of some tokens, you deduct a proportion of the pooled cost, based on the average cost.

The same-day rule

If you buy and sell the same type of token on the same day, the disposal is first matched with the acquisitions made that day, rather than with the pool.

The 30-day ("bed and breakfast") rule

If you dispose of tokens and buy tokens of the same type within the next 30 days, those new tokens are matched to the earlier disposal instead of going into the pool. HMRC applies the same-day rule first, then the 30-day rule, and then the Section 104 pool. This stops people selling and quickly buying back simply to crystallise a gain or loss at a chosen price.

Illustrative example

This example is entirely fictional and simplified. It ignores fees and assumes no other gains or losses in the year.

Sam, a UK resident, holds 2 units of a token in a Section 104 pool with a pooled cost of £40,000.

• 1 June 2026: Sam buys 1 more unit for £30,000. The pool is now 3 units costing £70,000.
• 15 August 2026: Sam sells 1.5 units for £60,000 (£40,000 per unit).
• 25 August 2026: Sam buys 0.5 units for £22,000, within 30 days of the sale.

Step 1, 30-day rule: 0.5 of the units sold are matched with the 0.5 units bought on 25 August. Proceeds £20,000, cost £22,000: a loss of £2,000.

Step 2, Section 104 pool: the remaining 1 unit comes from the pool. Cost is £70,000 × 1/3 = £23,333. Proceeds £40,000: a gain of £16,667.

Step 3, net gain: £16,667 − £2,000 = £14,667. Less the £3,000 annual exempt amount = £11,667 taxable.

Step 4, rates: Sam's taxable income after the Personal Allowance is £30,000, leaving £7,700 of the basic rate band. £7,700 × 18% = £1,386, and £3,967 × 24% = £952. Total CGT of about £2,338.

The pool now holds 2 units with a cost of £46,667. The 0.5 units bought on 25 August do not enter the pool because they were matched to the disposal.

If you use crypto tax software, check that it applies the UK matching rules and has the correct cost data. Our CGT estimator gives a quick indication, and our gains and losses calculation service handles the full computation.

How to reduce tax on crypto in the UK legitimately

People often search for how to avoid tax on crypto in the UK. Evading tax is illegal, but there are legitimate ways to make sure you pay no more than you need to, depending on your circumstances:

• Use your annual exempt amount each tax year, as unused allowance is lost.
• Claim all allowable costs, including transaction fees.
• Report your losses. Losses must be claimed to be used, and can reduce gains in the same year or later years. See crypto losses and tax in the UK.
• Consider spouse or civil partner transfers. Because these are not disposals, couples sometimes arrange holdings so both allowances and basic rate bands can be used. The tax position depends on genuine ownership and should be planned carefully.
• Think about timing. Because the rate depends on your income in the year, the tax year in which you make a disposal can matter. Bear in mind the 30-day rule if you plan to sell and buy back.

Reporting crypto gains to HMRC

GOV.UK says you need to report if your total gains for the tax year are above the annual exempt amount. Separately, if you are registered for Self Assessment, you need to report your gains if the total amount you sold assets for was more than £50,000 (from 2023/24 onwards), even if no tax is due.

There are two routes:

• Self Assessment. From the 2024/25 return onwards there is a dedicated cryptoasset section, and figures must be given in pounds sterling. The online filing and payment deadline is 31 January after the end of the tax year, so for 2026/27 (6 April 2026 to 5 April 2027) it is 31 January 2028. See our Self Assessment service.
• The real-time Capital Gains Tax service. GOV.UK lists this as an option for crypto gains if you are eligible, generally for people who do not otherwise need to file a Self Assessment return. Reports are due by 31 December after the end of the tax year.

HMRC also asks you to keep records for each transaction, including the type of token, date, number of units, value in pounds sterling, bank statements, and pooled costs before and after each disposal. With platforms now reporting under the Cryptoasset Reporting Framework, good records matter more than ever; see do crypto exchanges report to HMRC?

Frequently asked questions

What is the crypto capital gains tax rate in the UK?

For disposals on or after 30 October 2024, the rate is 18% on gains that fall within your unused basic rate band and 24% on gains above it. Before that date the rates were 10% and 20%. The rate applied depends on your taxable income in the same tax year, so two people with the same gain can pay different amounts.

How much crypto profit is tax-free in the UK?

The annual exempt amount is £3,000 for 2026/27, as it was for 2024/25 and 2025/26. It covers your total net gains on all assets in the tax year, not each disposal. You may still need to report if you are registered for Self Assessment and sold assets worth more than £50,000 in total.

Is swapping one crypto for another taxable?

Yes, exchanging one type of token for another is a disposal for Capital Gains Tax. You need to work out the sterling value at the time of the swap and compare it with the allowable cost of the tokens given up. This applies even if you never convert back to pounds.

Do I pay tax if I give crypto to my spouse?

Gifts to a spouse or civil partner are excluded from disposal treatment, so no Capital Gains Tax arises on the transfer itself. Your spouse or civil partner generally takes over the original cost for future disposals. Gifts to other people, including other family members, are disposals.

When do I need to report crypto gains?

Report if your gains exceed the annual exempt amount, or if you are registered for Self Assessment and sold assets for more than £50,000 in total. Use your Self Assessment return (31 January deadline online) or, if eligible, the real-time Capital Gains Tax service by 31 December after the tax year.

Getting crypto capital gains tax right

Crypto capital gains tax in the UK follows clear rules, but applying them to a real transaction history takes care, particularly with swaps, multiple platforms and DeFi activity. If you would like us to calculate your gains, review an existing report or prepare your return, please get in touch and we will talk through what you need.