Crypto tax calculator, 2026/27

How this is calculated

HMRC does not treat cryptoassets as currency or a special asset class for tax purposes; for most individuals, buying and later selling, swapping or spending cryptoassets is a disposal for capital gains tax purposes, taxed in exactly the same way as shares.

The gain is the disposal proceeds less the pooled acquisition cost of the tokens sold, calculated using share-matching rules: acquisitions on the same day are matched first, then acquisitions in the following 30 days, then the average cost of everything else held in a 'section 104 pool'. After the £3,000 annual exempt amount, the gain is taxed at 18.0% or 24.0% depending on your total income and gains for the year.

Swapping one cryptoasset for another (not just cashing out to sterling) is a disposal in HMRC's eyes and triggers a chargeable gain or loss at that point, which surprises many crypto investors who assume tax only arises when converting back to pounds.

When it's income tax instead of CGT

Mining rewards, staking rewards and some airdrops can be taxed as miscellaneous income or trading income on receipt, particularly where there is an element of service provided or the activity amounts to a trade, with the tokens' value at receipt then becoming the acquisition cost for any later capital gain.

Getting paid in cryptoassets by an employer is generally taxed as employment income through PAYE at the value when received, again separately from any later capital gain or loss on disposal.

Record-keeping

Because of the share-matching and pooling rules, accurate records of every acquisition and disposal, including date, quantity, value in sterling and fees, are essential; most crypto tax software exists specifically to reconstruct this from exchange data.

HMRC has increasingly used data from UK exchanges to identify undeclared gains, so keeping records up to date is far cheaper than reconstructing years of transaction history after a compliance check begins.

Do I pay tax just for holding crypto?

No, simply holding cryptoassets creates no tax charge. Tax is only triggered by a disposal event, such as selling for currency, swapping for another cryptoasset, spending it, or gifting it (other than to a spouse or civil partner).

Is swapping one crypto for another taxable?

Yes, HMRC treats a swap between two different cryptoassets as a disposal of the first asset and an acquisition of the second, so a gain or loss must be calculated at the time of the swap, even though no sterling changes hands.

How are losses treated?

Losses on cryptoasset disposals can be set against other capital gains in the same year or carried forward against future gains, provided they are reported to HMRC, usually via self assessment, generally within four years of the end of the relevant tax year.

Do I need to report crypto gains if they are below the annual exempt amount?

Not usually, if your total gains for the year are below £3,000 and you are not otherwise required to file a return, though HMRC may still ask about proceeds if the total disposal value is very large.