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The case of the United Kingdom

What are the tax obligations regarding cryptoassets?

In the UK, HM Revenue and Customs (HMRC) does not consider cryptoassets to be currency or money. Instead, they are treated as assets, and transactions may be subject to Capital Gains Tax or Income Tax.

There are two main tax categories for individuals:

1. Capital Gains Tax: You may need to pay Capital Gains Tax when you sell cryptoassets for fiat currency, exchange one cryptoasset for another, or use cryptoassets to pay for goods or services. You only pay tax on gains that exceed your annual tax-free allowance.
   
   
2. Income Tax: You may need to pay Income Tax and National Insurance contributions on cryptoassets received as income, such as from mining or employment.
   
   

When do I need to declare my cryptoassets?

The UK tax year runs from 6 April to 5 April of the following year. You must report any taxable gains or income on your Self Assessment tax return.

The deadlines for submitting your Self Assessment tax return are:

Paper tax returns: 31 October following the end of the tax year
Online tax returns: 31 January following the end of the tax year

For the 2024/2025 tax year, the online filing and payment deadline is 31 January 2026.

What is the tax rate on crypto capital gains?

The rate of Capital Gains Tax you pay depends on your total taxable income:

Basic rate taxpayers: 10% on gains
Higher and additional rate taxpayers: 20% on gains

You are only taxed on your overall gains above the annual exempt allowance for the tax year, which is £3,000 for the 2024/2025 tax year.

I lost money this year: do I still have to declare my cryptoassets?

If you make a loss on your cryptoassets, you can declare these losses to HMRC to offset them against other capital gains you make in the same tax year or carry them forward to future tax years. Declaring your losses can help reduce your overall tax liability.

You remain responsible for the correct filing of your tax return. The information contained in this article and in your annual statement does not constitute tax advice. Any tax consequences resulting from the use of your tax history and this article are your own. You are responsible for consulting your own tax adviser, which is encouraged when preparing your tax return.