UK Crypto Tax Calculator
Calculate your UK cryptocurrency capital gains and income tax obligations
How crypto tax works (UK overview)
Cryptocurrency transactions in the UK are treated as property for tax purposes. This means that when you buy, sell, trade, or use cryptocurrency, you may need to pay Capital Gains Tax (CGT) or Income Tax depending on the circumstances.
Capital Gains Tax
Applies when you dispose of cryptocurrency for more than you paid for it. This includes:
- Selling crypto for fiat currency (GBP, USD, etc.)
- Trading one cryptocurrency for another
- Using crypto to buy goods or services
- Giving crypto as a gift
- Transferring crypto between wallets (in some cases)
CGT rates range from 10% to 28% depending on your total income.
Crypto Income
Treated as ordinary income and taxed at your marginal rate. This includes:
- Mining rewards and transaction fees
- Staking rewards and interest
- Airdrops and fork rewards
- Hard fork claims
- Income from crypto lending
Income tax rates range from 20% to 45%.
Allowances & Losses
You can reduce your tax bill through allowances and loss relief:
- CGT Allowance: £12,300 tax-free gains per year
- Loss Relief: Losses can offset future gains
- Bed & Breakfasting: 30-day rule for loss claims
- Annual Exempt Amount: £12,570 personal allowance
Keep detailed records to claim all available reliefs.
Common Mistakes
Avoid these frequent errors that can lead to penalties:
- Forgetting to report small transactions
- Not keeping adequate records
- Missing the 30-day rule for losses
- Incorrect cost basis calculations
- Failing to report foreign exchanges
HMRC can investigate up to 20 years back.
Record Keeping Essentials
Maintain comprehensive records for at least 5 years (or longer if needed). This includes:
- Transaction dates and amounts
- Exchange rates at the time of transaction
- Fees paid to exchanges or wallets
- Wallet addresses and transaction IDs
- Documentation of mining/staking activities
What you'll need to calculate your tax
US crypto tax: why UK users still need to understand it
Most UK residents follow HMRC rules for their cryptocurrency transactions. However, understanding US tax rules becomes relevant only in specific circumstances where you have US tax obligations.
When US tax knowledge matters for UK residents
You may need to consider US tax rules if you:
- Are a US citizen or green card holder living in the UK
- Use US-based exchanges (Coinbase, Kraken, Binance.US)
- Have US-source crypto income
- Participate in US-based DeFi protocols
- Hold US real property tokens (REITs)
In these cases, you may need to file US tax returns (Form 1040) and report crypto transactions using Form 8949 and Schedule D. The IRS treats crypto as property and has extraterritorial reach for US taxpayers.
Important Notice
This calculator provides estimates and it constitute all UK tax or legal advice.
All citizens are required to pay their tax. Crypto tax rules are complex and subject to change. Always consult a qualified tax professional or Chartered Tax Advisor (CTA) for your specific circumstances. HMRC can investigate tax returns up to 20 years back, and penalties for non-compliance can be severe.