UK Crypto Tax Rates for 2026: CGT, Allowance and Examples

For ordinary UK investors, crypto disposals usually fall within Capital Gains Tax. This guide explains the £3,000 annual exempt amount, the 18% and 24% rates, loss ordering and the difference between the 2025/26 filing year and the current 2026/27 tax year.

Reviewed September 1, 2026. The tax year matters. A return being prepared during 2026 normally covers transactions from 6 April 2025 to 5 April 2026. The current 2026/27 tax year began on 6 April 2026. The standard individual CGT rates and annual exempt amount described below are the same for both years, but filing dates are different.

UK crypto CGT rates and allowance for 2025/26 and 2026/27

The figures come from HMRC's current CGT rates and allowances. The £3,000 annual exempt amount, or AEA, is not a transaction threshold and cannot be carried forward. It reduces net chargeable gains for the tax year after current-year allowable losses have been set against gains.

A qualifying new resident who claims the foreign income and gains regime or Overseas Workday Relief does not receive an AEA for that year. Trusts and companies also follow different rules, so this article is for an individual holding crypto as an investment.

How HMRC decides whether 18% or 24% applies

Crypto does not have one flat UK tax rate. First calculate taxable income, then add the taxable capital gain. The part that fits inside the unused basic-rate band is generally charged at 18%; the balance is charged at 24%. A taxpayer can therefore pay both rates on one year's gains.

1. Calculate every gain and allowable loss in pounds sterling at each disposal.
2. Net current-year allowable losses against gains.
3. Apply eligible brought-forward losses only as far as required under the loss rules.
4. Deduct the available annual exempt amount.
5. Add the remaining gain to taxable income to allocate it between 18% and 24%.

Income Tax and CGT are separate calculations. Staking income received today can be taxable as income and the later disposal of those same tokens can create a separate capital gain or loss.

Which crypto events create a capital disposal?

HMRC's cryptoasset disposal guidance includes more than cash sales. A disposal normally occurs when an investor:

• sells a token for pounds or another fiat currency;
• swaps Bitcoin for Ether, a stablecoin or another token;
• spends crypto on goods or services;
• gives crypto to another person, except for the usual spouse or civil-partner no-gain/no-loss treatment;
• changes beneficial ownership through a DeFi or wrapping arrangement, depending on the contract.

Buying with pounds is not a disposal. Moving the same tokens between wallets that you beneficially control is also not a disposal. Network fees still need evidence because their treatment depends on the transaction they relate to. A token-to-token swap requires a sterling market value even when no cash enters the bank account.

What counts as an allowable crypto cost?

The starting point is the sterling consideration paid for the asset. HMRC also recognises certain transaction, contract and valuation costs under section 38 TCGA 1992. Deposit or withdrawal charges are not automatically allowable merely because an exchange charged them.

• Usually relevant: acquisition price, qualifying blockchain transaction fees, disposal fees and necessary valuation or contract costs.
• Do not deduct twice: a cost already deducted for Income Tax cannot also reduce a capital gain.
• Token swaps: HMRC accepts a just and reasonable apportionment; its manual says a 50/50 split between the disposed and acquired assets can be reasonable.
• Mining equipment and electricity: these are not acquisition costs of mined tokens for CGT, although separate Income Tax rules may apply.

See HMRC's detailed allowable-expense table before treating every exchange charge as cost basis.

How capital losses reduce crypto gains

Allowable losses arising in the same tax year are normally deducted from gains before the AEA. Unused notified losses can be carried forward. Brought-forward losses are generally used only to reduce gains to the AEA, preserving any excess for later years. A loss must be reported within four years after the end of the tax year in which the disposal occurred.

A fall in market price is not a loss until there is a disposal or a valid negligible-value claim. Theft is not automatically a disposal in HMRC's view. Losses on transactions with connected people can also be restricted. The dedicated UK crypto losses guide covers these limitations.

Why UK cost basis is not FIFO

Fungible tokens of the same type are normally held in a section 104 pool. Each token type has its own pooled quantity and allowable cost. Before using the pool, disposals are matched with acquisitions of the same token on the same day and then acquisitions in the following 30 days. NFTs are separately identifiable and are not pooled.

This matching order means a generic FIFO export can produce a materially wrong UK result. Read the same-day, 30-day and section 104 guide before importing a foreign tax-lot report.

Two worked examples

Example 1: the gain stays inside the annual exempt amount

An investor has £4,200 of crypto gains and £1,500 of allowable capital losses in 2025/26. Net gains are £2,700, below the £3,000 AEA, so no CGT is due on those figures. A return may still be required for another reason, including high total disposal proceeds or a loss claim.

Example 2: one gain uses both rates

After losses and the AEA, an investor has a £10,000 taxable gain. If £7,700 fits in the unused basic-rate band, that part is charged at 18% (£1,386) and the remaining £2,300 at 24% (£552), producing £1,938 before any other adjustment. The unused income-tax band, not the name of the token, drives the split.

When a gain must be reported

The 2025/26 SA108 notes say to complete the Capital Gains Tax summary where, among other cases, chargeable assets disposed of were worth more than £50,000, gains before losses exceeded £3,000, or a loss, claim or election is being made. The new SA108 has dedicated cryptoasset boxes. The HMRC Self Assessment guide explains those boxes and deadlines.

Do not equate “no tax due” with “no records required”. Keep transaction dates, token quantities, sterling values, wallet ownership evidence, fees, pool movements and calculations.

UK crypto tax rate FAQ

Disclaimer: This article is for general informational purposes only and does not constitute tax advice. For individual tax advice, consult a licensed tax professional.