Crypto tax in the United Kingdom
Rules verified in September 2026.
Short term
18–24%
Long term
18–24%
Threshold
None (rate depends on income)
Annual allowance
Annual exemption £3,000 (fixed since 2024/25)
Cost method
Section 104 pool (average cost) + same-day and 30-day rules
Legislation
TCGA 1992; HMRC Cryptoassets Manual
In short
HMRC treats crypto as capital assets. Since the October 2024 Autumn Budget: 18% on the part of the gain within the basic rate band (taxable income up to £37,700) and 24% above it. Annual exemption of £3,000 (Annual Exempt Amount, fixed since 2024/25). No holding-period distinction. Cost is computed through the Section 104 pool (average cost) with the same-day and 30-day rules, not FIFO.
Key points
- 18% on the part of the gain within the basic rate band (taxable income up to £37,700)
- 24% above the basic rate band (was 20% until Oct 2024)
- Annual exemption of £3,000 (fixed since 2024/25)
- Cost through the Section 104 pool (average cost) + same-day and 30-day rules (not FIFO)
- File via Self Assessment
- CARF: exchanges collect your data from 1 Jan 2026 and report to HMRC from 2027
Frequently asked questions
How much tax do you pay on crypto in the United Kingdom?
18–24%. HMRC treats crypto as capital assets. Since the October 2024 Autumn Budget: 18% on the part of the gain within the basic rate band (taxable income up to £37,700) and 24% above it. Annual exemption of £3,000 (Annual Exempt Amount, fixed since 2024/25). No holding-period distinction. Cost is computed through the Section 104 pool (average cost) with the same-day and 30-day rules, not FIFO.
Is there an annual allowance on crypto gains in the United Kingdom?
Yes: annual exemption £3,000 (fixed since 2024/25).
Which method is used to match buys and sells?
It depends on the country: FIFO (the first unit bought is the first sold) in Portugal, Spain, Germany or Belgium; weighted average cost in France, Luxembourg or Brazil; LIFO in Italy; the Section 104 pool in the UK. ChainFolioAI applies the chosen country's method to your history (in some countries with a simplification, stated on this page) and exports the result.
Calculate on your own history
The rate is only half the problem. To file, you need to match each disposal to the right acquisition under the country's method (FIFO, average cost, LIFO…), convert to your currency at the date of each transaction, and separate short-term from long-term. ChainFolioAI does this from your transactions — connect wallets read-only or import a CSV from your exchange — and exports to PDF or Excel.
Other countries
⚠️ General information, not tax advice. Rules change and your situation may have specifics (residency, professional activity, staking, mining). Confirm with an accountant or your tax authority before filing. ChainFolioAI is not an exchange or a crypto-asset service provider and does not report your data to any tax authority: reporting duties (DAC8, CARF) fall on exchanges. The reports you export are yours alone.