How HMRC Taxes Crypto

HMRC classifies cryptocurrency as property, not currency or security. This means you pay Capital Gains Tax (CGT) on disposals and Income Tax on certain crypto activities.

Taxable Events

• Selling crypto for fiat currency (GBP)
• Swapping one crypto for another
• Using crypto to pay for goods or services
• Gifting crypto (except to spouse)

2026/27 Allowances & Rates

• CGT allowance - 3,000 (reduced from previous years)
• Basic rate - 10% on gains within basic rate band
• Higher rate - 20% on gains above basic rate band
• Airdrops - Taxed as income at market value

Crypto Tax Calculators

Several UK-specific tools can help: Koinly, Recap, and CoinTracking all support HMRC reporting standards.