How Crypto Tax Works in the UK

Cryptocurrency transactions in the UK are subject to capital gains tax (CGT) or income tax, depending on the nature of the transaction.

Capital Gains Explained

When you sell or dispose of cryptocurrency for more than you paid, you may have a capital gain. CGT is charged on the profit, after deducting the annual CGT allowance (£12,300 for 2023/24).

Crypto Income Explained

Income from crypto activities, such as staking rewards, mining, or airdrops, is treated as miscellaneous income and taxed at your marginal rate.

Allowances & Losses

You can offset losses against gains. The personal allowance (£12,570) applies to income tax. CGT has its own allowance.

For detailed advice, consult a tax professional.