Crypto tax in the United Kingdom in 2026

7 min read · Published 6 October 2026 · Updated 7 October 2026

Profit from selling and swapping coins is subject to capital gains tax at 18% or 24% after £3,000 a year tax-free. Staking and mining are subject to income tax. Since 2026 exchanges pass client data to the tax authority.

Item	In 2026
Rate for individuals	18% within the basic income tax band, 24% above
Annual exempt amount	£3,000 of gains a year, ~$3,985
Holding period relief	none
Coin-to-coin swap	taxed as a disposal
Staking and mining	income tax at 20-45% on receipt
Return	by 31 January after the tax year, which runs from 6 April to 5 April
Data exchange	platforms collect data from 1 January 2026

Data checked 2026-10-07

The UK has no separate crypto tax. The tax authority treats bitcoin and other coins as property, so profit on a sale is subject to capital gains tax: 18% if your income falls within the basic income tax band and 24% on the part above it. These rates apply from 30 October 2024.

Tax applies not only to sales for pounds but also to swapping one coin for another, paying with crypto and giving coins to anyone other than a spouse. The first £3,000 of gains a year is tax-free, and losses reduce gains in the same year and carry forward to future years if claimed.

Who pays crypto tax in the UK

UK tax residence is determined by the statutory residence test: days in the country, a home, work and family ties decide. 183 days or more in a tax year always make you resident; with fewer days you can become resident through ties.

A resident pays capital gains tax on crypto wherever the coins are held: in the tax authority's view exchange tokens are located where their owner lives. So the UK regime for new residents, which exempts foreign income and gains for 4 years, generally does not cover crypto.

A non-resident usually pays no UK capital gains tax on crypto. But if you return to the UK within 5 years, gains on coins bought before leaving and sold abroad are taxed in the year of return.

How to calculate crypto income

Cost is calculated not per coin but on a pool of coins of the same type at average cost. There are two exceptions: coins bought on the same day as the sale and coins bought within 30 days after the sale are matched with the sale first. This rule stops you selling at a loss and immediately buying back for tax purposes.

Losses and the £3,000 exempt amount are deducted from the year's gains, and the rest is taxed at 18% or 24% depending on total income. Gains first fill any unused part of the basic income tax band, and what goes beyond it is taxed at 24%.

Disposals must be reported in the return if gains exceed the exempt amount or total proceeds for the year exceed £50,000, even if the tax is ultimately zero.

Situation	Calculation	Tax
Bought coins for $10,000, sold for $25,000, income within the basic band	($15,000 - $3,985 exempt) × 18%	~$1,985
Same with income above the basic band	($15,000 - $3,985) × 24%	~$2,645
Swapped bitcoin for ether with a $5,000 rise	a swap is a disposal: ($5,000 - $3,985) × 18%	~$185
Received $2,000 of staking rewards, 40% income tax rate	$2,000 × 40%	$800
$6,000 gain and $4,000 loss in one year	$2,000 is below the exempt amount	$0

Amounts in US dollars at the European Central Bank rate of 6 October 2026, about $1.33 per pound, tax rounded.

Crypto in the UK means a coin pool, the 30-day rule and a return by 31 January

Mistakes are mostly about cost basis and deadlines: profit is calculated per coin rather than on the pool at average cost, the 30-day rule for coins bought back after a sale is forgotten, coin-to-coin swaps are not reported and the return is skipped even though annual disposals exceeded £50,000. We gather trades from all exchanges and wallets, calculate gains under the tax authority's rules, use the annual exempt amount and losses and prepare the return.

The cost of support depends on the number of trades and exchanges; a manager will calculate it in the chat.

Get a support quote

Mining and staking

Mining and staking rewards received by an individual are subject to income tax at the market value of the coins on receipt: 20%, 40% or 45% depending on total income, with Scotland on its own scale. If mining is run as a business, business profit after expenses is taxed.

The reward becomes the cost of those coins. On a later sale the gain above it is subject to capital gains tax.

If salary is paid in crypto, the employer deducts income tax and contributions as for ordinary pay.

Cashing out crypto and moving it to a bank

Crypto can be sold for pounds through platforms registered with the Financial Conduct Authority and the money withdrawn to a UK account. The withdrawal itself is not taxed.

UK banks check transfers from exchanges and may ask for the trade history and proof of the source of funds. Some banks restrict transfers to exchanges, so the account for crypto activity is chosen in advance.

Tax is paid after the tax year together with the return: both are due by 31 January of the following year.

Crypto account data sharing

Since 1 January 2026 UK crypto platforms collect data on clients and their transactions under the OECD crypto-asset reporting standard and pass it to the UK tax authority, first in 2027.

Clients must give the platform their tax number, and a penalty applies for failing to provide information. The tax authority passes data on clients from other countries to their tax authorities.

If transactions were not declared in past years, it is safer to disclose them yourself through the tax authority's disclosure facility before an enquiry arrives.

Licences for crypto companies in the UK

Companies providing crypto services in the UK register with the Financial Conduct Authority under anti-money-laundering rules, and crypto promotions are subject to separate rules.

An international project without UK clients often finds a licence in Estonia or the British Virgin Islands more convenient, while a UK company is opened for related business.

A UK company's profit is subject to 25% corporation tax, or 19% on small profits. More on the company registration in the UK page.

Murblz sets up crypto companies and licences in these services: crypto licence in Estonia, BVI company with a virtual asset service provider licence, company registration in the UK.

This topic in other countries

Crypto tax in other countries:

Taxes, relocation and business in this country:

Where crypto is not taxed at all is covered in countries with no crypto tax.

FAQ

What is the crypto tax in the UK in 2026?

Capital gains tax at 18% within the basic income tax band and 24% above it, after £3,000 of tax-free gains a year.

Is a crypto-to-crypto swap taxed in the UK?

Yes, swapping one coin for another is a disposal, and the gain is subject to capital gains tax.

How is staking taxed in the UK?

As income at 20-45% on the market value of the coins on receipt. On sale, the gain above that value is subject to capital gains tax.

How much crypto can you sell tax-free in the UK?

Gains up to £3,000 a year, about $3,985, are tax-free. But if annual proceeds exceed £50,000, disposals are reported even with no tax due.

When is the crypto tax return due in the UK?

The tax year runs from 6 April to 5 April; the return is filed and tax paid by 31 January of the following year.

Will the UK tax authority know about my crypto?

Yes. Since 1 January 2026 UK exchanges collect client and transaction data and pass it to the tax authority from 2027.

Does a non-resident pay UK crypto tax?

Usually not. But if you return within 5 years, gains on coins bought before leaving are taxed in the year of return.

Does the UK regime for new residents exempt crypto?

Generally not: in the tax authority's view coins are located where the owner lives, so a resident's gains are treated as UK gains.

Don’t want to figure this out alone?

We handle the whole process end to end: we check your documents, match a program to your situation and give you honest timelines and costs. Ask your question in the chat: the free consultation starts right here. Legal representation before authorities and courts is handled by Murblz specialists together with locally licensed partners.

The Murblz consultant replies straight away in the chat on this page. Describe your situation and we will work it out together.

Free consultation

Or message us on Telegram →

FreeConfidentialInstant reply

Programs

Programs in the United Kingdom

Residence Talent visa

Crypto tax in the United Kingdom in 2026

Who pays crypto tax in the UK

How to calculate crypto income

Mining and staking

Cashing out crypto and moving it to a bank

Crypto account data sharing

Licences for crypto companies in the UK

This topic in other countries

FAQ

Don’t want to figure this out alone?

Programs in the United Kingdom

Read next

Buying an apartment in the UK as a foreigner in 2026

Crypto license: where to get one and what it costs

Estonian citizenship in 2026: how a foreigner gets it