Capital Gains Tax on cryptoassets: rates and allowances
Quick answer: For 2025/26, the CGT annual exempt amount is £3,000. Basic-rate taxpayers generally pay 18% on crypto gains; higher and additional-rate taxpayers pay 24% on most chargeable assets including shares and crypto. Report through Self Assessment or the CGT real-time service.
Most individual investors pay Capital Gains Tax on crypto profits rather than Income Tax. The rate and reporting depend on your total gains, your income band, and whether you have used your annual exempt amount elsewhere.
Working out your gain
Your gain is normally the disposal proceeds minus allowable costs. Proceeds are the pound sterling value at disposal. Allowable costs include what you paid for the tokens (via pooling), transaction fees, and costs of valuing the asset for that transaction. Costs already deducted for Income Tax cannot be deducted again.
Establish allowable cost using the UK token-matching rules before calculating the gain.
Rates for 2025/26
For disposals on or after 30 October 2024, the CGT rate on most assets (including crypto) is 18% where total taxable income and gains fall within the basic-rate band, and 24% above that. Residential property has different rates — crypto follows the 'most assets' rates published by HMRC.
From sale proceeds to a taxable gain
Illustrative arithmetic · costs already matched
Illustration assumes no losses, an unused £3,000 allowance and enough basic-rate band for the whole taxable gain. Other gains, income and reliefs can change the result.
Read the diagram as text
- 01. £10,000. Proceeds less £5,000 cost and £50 allowable fees.
- 02. £4,950 gain. Less £3,000 of available annual allowance in this example.
- 03. £1,950 taxable. £351 CGT if all of this falls at the 18% rate.
Source: HMRC CGT rates and calculation
Using losses
If you dispose of tokens at a loss, you can offset that loss against other gains in the same tax year. Unused losses can be carried forward to future years, but you must report them to HMRC within the allowed time limits to preserve them.
Keep realised losses distinct from inaccessible holdings; the negligible-value guide explains the evidence and conditions.
Reporting deadlines
If you file Self Assessment, include crypto gains in your return due by 31 January following the tax year. Alternatively, use HMRC's 'report and pay Capital Gains Tax' service within 60 days of the disposal for UK residential property — for crypto, Self Assessment or the real-time CGT service are the usual routes for individuals.
Once costs and available allowances are established, use the CGT estimator to explore a simple disposal.
Frequently asked questions
What if I lost money overall this year? +
Report the losses on your tax return. You can carry them forward to offset future gains once registered with HMRC.
Does spending crypto on goods trigger CGT? +
Yes. Using tokens to pay for goods or services is a disposal. You calculate the gain based on the sterling value at the time of purchase.