NFT tax in the UK — Capital Gains Tax and Income Tax
Quick answer: Selling an NFT for a profit is usually a Capital Gains Tax disposal. Creating and selling NFTs regularly may count as trading income instead. Owning an NFT does not give you copyright in the artwork.
NFTs (non-fungible tokens) are usually treated as cryptoassets by HMRC. Tax depends on whether you are investing or creating and selling them as a business.
Buying and selling NFTs
If you buy an NFT as an investor and sell later, calculate the gain in pounds sterling. Swapping an NFT for crypto is a disposal of the NFT and acquisition of the crypto.
Creating NFTs for sale
If you mint and sell NFTs as a business or trade, profits may be subject to Income Tax and National Insurance rather than CGT alone. Keep records of costs and sales.
Frequently asked questions
Are NFT gifts taxable?+
Gifting an NFT to someone other than a spouse or civil partner can trigger CGT on any gain, similar to other crypto disposals.