UK Crypto Tax 2025/26: Step-by-Step Self-Assessment Guide

UK Crypto Tax

More and more UK investors now have to include crypto in their Self Assessment tax returns. HMRC is tightening its focus on UK crypto tax, with a new crypto section on the capital gains pages and growing use of data from exchanges to check returns.

If you are unsure where to start, this step-by-step guide will help you prepare your data, calculate your figures and file your return correctly.

Step 1 – Confirm Whether You Need to Report UK Crypto Tax

You may need to complete Self Assessment for UK crypto tax if:

• Your total gains from crypto and other assets exceed the £3,000 CGT allowance in 2025/26;
• Your total disposal proceeds are large (for example from selling big positions) even if the net gain is small;
• You receive crypto income (staking, mining, airdrops, salary, freelancing) that is not taxed via PAYE;
• HMRC has sent you a tax return notice or information request;
• You have previously under-reported or not reported crypto and want to make a voluntary disclosure.

If in doubt, it is safer to declare than ignore your crypto.

Step 2 – Gather All Your Crypto Data

Accurate UK crypto tax reporting starts with complete and clean data. Collect:

• CSV exports or tax reports from every centralised exchange you have used;
• Wallet transaction histories for on-chain activity;
• Records from DeFi platforms, NFT marketplaces and yield platforms;
• Evidence of fiat deposits and withdrawals to/from your bank accounts.

Where possible, keep copies of original CSVs and any API-based reports for your records. HMRC can ask for evidence going back several years.

Because manual spreadsheets can be error-prone, most investors now use a crypto tax tool to consolidate data across exchanges and wallets before sending it to their accountant.

Step 3 – Categorise Your Crypto Transactions

For UK crypto tax purposes, group your transactions into:

1. Acquisitions – where you acquire tokens (purchases, some airdrops, gifts from others).
2. Disposals – where you sell, swap, spend or gift tokens.
3. Income events – staking rewards, mining, referral bonuses, salary/fees in crypto.

Transfers between your own wallets and exchanges usually are not disposals, but they must be matched correctly to avoid double-counting.

Step 4 – Calculate Capital Gains and Losses (UK Crypto Tax Rules)

UK CGT uses share-matching rules:

1. Same-day rule
2. 30-day (“bed and breakfast”) rule
3. Section 104 pooled holding

These rules apply to crypto just like shares and other assets.

For each disposal you need to calculate:

• Allowable cost (from the section 104 pool or matching rules)
• Proceeds (in GBP)
• Gain or loss

At the end of the tax year you:

• Add up all gains
• Add up all losses
• Offset losses against gains
• Deduct the £3,000 annual CGT allowance
• Apply the correct CGT rate (18% / 24% for most non-residential gains).

If you have unused losses, you can carry them forward indefinitely, provided they are reported to HMRC.

Step 5 – Work Out Crypto Income

Next, calculate your crypto income for the year:

• For each reward, record the GBP value at the time of receipt;
• Group by type (staking, mining, airdrops, salary etc.);
• Deduct any allowable expenses (for example, a portion of electricity for some mining activities) where appropriate.

These totals are then included in the income section of your Self Assessment return and taxed at your marginal income tax rate.

Step 6 – Complete the HMRC Self Assessment Crypto Sections

For the 2024/25 tax year onwards, Self Assessment includes a dedicated crypto area within the capital gains pages.

You will typically need to enter:

• Total disposal proceeds for crypto;
• Total allowable costs;
• Net gains and losses;
• Losses brought forward and used;
• Any additional information needed to explain complex situations.

Where you are making a negligible value claim, or correcting past years, supporting notes are essential.

Because UK crypto tax rules can be nuanced, many taxpayers choose to have a specialist prepare or review their return before submission.

Step 7 – Keep Your Records for HMRC

HMRC can ask to see your calculations and supporting documents years after the event. Keep:

• Exchange and wallet CSVs;
• Bank statements;
• Working papers or crypto tax software reports;
• Copies of filed tax returns and computation summaries.

Good documentation makes any future HMRC question or enquiry much less stressful.

Need Help with Your UK Crypto Tax Return?

If this feels overwhelming, you are not alone. Many investors now prefer to work with a specialist UK crypto tax accountant rather than navigating HMRC rules alone.

MyCryptoTax can:

• Reconcile your data across exchanges, wallets and DeFi;
• Compute UK crypto tax figures in line with HMRC rules;
• Prepare and file your Self Assessment return;
• Deal with HMRC on your behalf where needed;
• Provide ongoing planning for future years.

Visit: MyCryptoTax

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DISCLAIMER

© My Accountancy Team 2026 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.