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Key UK Crypto Tax Changes in 2025/26: What Investors & Traders Need to Know
UK Crypto Tax Changes 2025/26
As specialist crypto tax accountants and advisors, we’ve seen how quickly the tax landscape can change for UK investors. With new rules coming into effect for the 2025/26 tax year, it’s essential that anyone holding or trading digital assets understands how these changes will affect their HMRC reporting and overall tax liability.
In this blog, we’ll walk you through the key updates and what they mean for crypto investors and traders in the UK.
1. Reduced Capital Gains Tax (CGT) Allowance
One of the biggest changes is the reduction of the CGT annual exempt amount.
- In 2023/24, the allowance was £6,000.
- In 2024/25, it dropped to £3,000.
- From 2025/26 onwards, this reduced amount remains in place.
This means that even relatively modest disposals of cryptoassets could trigger a tax liability. For example, selling Bitcoin or swapping into stablecoins above £3,000 in gains will now be taxable.
Tax Advisor’s Tip:
Plan your disposals carefully. Consider spreading gains across tax years, using spousal transfers, or crystallising losses to stay within the allowance.
2. New Crypto Reporting Sections on Self Assessment
HMRC has confirmed that from 2025/26, Self Assessment returns will include dedicated sections for cryptoassets.
Previously, crypto gains were reported under general capital gains. Now, HMRC wants clearer, more specific disclosure. This means:
- You will need to itemise your crypto transactions more accurately.
- HMRC will have a clearer picture of your holdings, disposals, and income (from staking, mining, or airdrops).
Tax Advisor’s Tip:
Don’t leave this until the last minute. Tools like Koinly can help consolidate your transaction history, but professional reconciliation is often needed to fix gaps and errors before submission.
3. HMRC Data-Sharing & Crypto Exchange Reporting
From 1 January 2026, under the OECD’s Crypto-Asset Reporting Framework (CARF), UK-based crypto platforms will be required to collect and share customer transaction data with HMRC.
This includes:
- Personal information (identity verification).
- Transaction history across wallets and exchanges.
- Transfers between self-custody wallets and exchanges.
Tax Advisor’s Tip:
Assume that HMRC will soon have full visibility of your activity. Voluntary, accurate reporting now is far safer than waiting to be contacted by HMRC later.
4. Income vs. Capital Gains – Crypto Still a Grey Area
While HMRC has provided some guidance, many areas remain complex:
- Staking rewards, airdrops, and mining are often treated as income at the time of receipt.
- Disposals (including swapping one crypto for another, or spending crypto) are treated as capital gains.
Getting the classification wrong can lead to underpayment, penalties, and stress if investigated.
Tax Advisor’s Tip:
Always keep detailed records of what type of transaction took place. A crypto tax accountant can review whether your activity falls under income tax or capital gains tax.
5. Tax Planning Opportunities Still Exist
Even with stricter rules, there are still ways to manage your liability:
- Use both spouses’ allowances by transferring assets tax-free.
- Time disposals across two tax years.
- Crystallise losses before year-end to offset gains.
- Make pension contributions to reduce taxable income.
- Consider residency implications if relocating abroad before major disposals.
Final Thoughts
The 2025/26 tax year marks a turning point for crypto investors in the UK. With lower allowances, new reporting requirements, and tighter HMRC oversight, it’s more important than ever to stay compliant and plan ahead.
At MyCryptoTax, we’ve partnered with Koinly since 2016 to provide clients with both the technology and the expertise they need. From software licences and API data uploads, to reconciliation, remediation, tax planning, and HMRC investigation support — we’re here to make sure your crypto tax affairs are handled properly.
Ready to prepare for the 2025/26 changes? Contact us today for a free consultation with a dedicated crypto tax accountant.
Visit: MyCryptoTax
FAQ’s
Will HMRC know about my crypto transactions?
Yes. From 2026, under the Crypto-Asset Reporting Framework (CARF), UK-based exchanges and wallet providers will be required to share user and transaction data with HMRC. Even before then, HMRC already uses data-sharing agreements and enquiries with major platforms.
Can I offset my crypto losses against gains?
Yes. Losses from selling or disposing of crypto can be used to offset gains, reducing your overall tax bill. However, you must keep accurate records and formally report those losses to HMRC for them to be allowable.
DISCLAIMER
© My Accountancy Team 2025 All Rights Reserved – The above articles are provided for guidance only and may not cover your personal circumstances so you should not rely on them. It is important that you seek appropriate professional advice which takes into account your personal circumstances where you can provide the full facts of the case and all documents related to your case. My Accountancy Team Ltd t/a mycryptotax.co.uk, cannot be held responsible for the consequences of any action or the consequences of deciding not to act.
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