How to sell crypto for pounds in the UK
Quick answer: Use an FCA-registered exchange where you hold or can deposit crypto, sell to GBP, then withdraw to your bank. Note the sale date, tokens sold, sterling received, and fees for HMRC. You may owe Capital Gains Tax on any profit above your £3,000 annual exempt amount.
Selling crypto for pounds is usually the reverse of buying: you trade tokens on an exchange, then withdraw sterling to your UK bank account. Each sale may trigger Capital Gains Tax, so record the date and sterling value.
Choose where to sell
The simplest route is the FCA-registered exchange where you bought the crypto. Check withdrawal fees, minimum amounts, and supported bank accounts. Verify the firm on the FCA register before transferring assets.
Place a sell order
Most apps offer ‘market’ sells (instant at current price) or ‘limit’ sells (at a price you set). Market orders are easier for beginners. The sterling amount shown is before fees — check the net amount you will receive.
Withdraw to your bank
Link a UK bank account in your name. Faster Payments often arrive within hours; first withdrawals may take longer while the exchange verifies you. Large amounts may trigger additional checks.
Tax when you sell
HMRC treats selling crypto for pounds as a Capital Gains Tax disposal. Calculate gain as sterling proceeds minus your pooled acquisition cost and allowable fees. Report through Self Assessment if gains exceed the annual exempt amount (£3,000 for 2025/26) or if you must file for other reasons. See our SA108 filing guide and CGT worked example.
If the exchange freezes withdrawals
Platform failures happen — Celsius and others left customers unable to access funds. This is why many people move long-term holdings to self-custody. FSCS does not cover crypto on exchanges.
Frequently asked questions
Do I pay tax if I sell at a loss?+
You may not owe CGT, but you should still record the loss. Losses can offset other gains in the same tax year or be carried forward.
Can I sell peer-to-peer for cash?+
Yes, but you still owe tax on any gain and face higher fraud risk. FCA-registered exchanges are safer for most people.