UK Crypto Tax Calculator 2026/27: Bitcoin, Ethereum, DeFi, NFT

Q How does HMRC tax cryptocurrency in 2026/27?

Two tracks. Disposals of crypto held as an investment: Capital Gains Tax at 18% on gains within your unused basic-rate band or 24% above it, after the £3,000 annual exempt amount. Those rates have applied to most assets since 30 October 2024 (10% and 20% before). Crypto received as income (staking, mining, airdrops given in return for something, DeFi returns of a revenue nature, pay in crypto) is charged to Income Tax, usually as miscellaneous income, or as trading income if it is part of a trade. HMRC says that only in exceptional circumstances would an individual buy and sell tokens with the frequency, organisation and sophistication of a financial trade (CRYPTO20250), so most individuals are on the Capital Gains Tax track.

Q What is the £3,000 Annual Exempt Amount?

The first £3,000 of your net capital gains in a tax year is tax-free. It covers gains from all assets together, not each asset separately. It was £12,300 in 2022/23, £6,000 in 2023/24 and has been £3,000 since 2024/25. Each person has their own, so a couple who genuinely own crypto jointly can use two. Unused allowance cannot be carried forward. Spreading disposals across tax years lets you use more than one year's allowance against the gains.

Q How does the Section 104 pool work for crypto?

Fungible tokens of the same type are pooled under section 104 TCGA 1992 (CRYPTO22200), so the allowable cost of a disposal is a proportion of the pool's total cost, not the price of particular units. Example: buy 1 BTC for £30,000, then 1 BTC for £50,000. The pool is 2 BTC costing £80,000. Sell 1 BTC for £60,000: allowable cost £40,000, gain £20,000. Each type of token has its own pool. Two rules come first: tokens bought on the same day as a disposal are matched first, then tokens bought in the following 30 days. Under the 30-day rule the disposal is matched with the cost of the tokens you bought back, which stops you crystallising a loss and immediately rebuying.

Q Are staking rewards taxable?

Usually yes. HMRC treats staking rewards as income when you receive them, at their sterling value then, either as miscellaneous income or, if the activity is a trade, as trading receipts (CRYPTO21200). When you later dispose of the tokens, any rise in value since receipt is a capital gain, with the value taxed as income forming the allowable cost. Example for someone with a £60,000 salary: rewards worth £20,000 when received add £8,000 of Income Tax; selling them later for £25,000 gives a gain of £5,000, which after the £3,000 annual exempt amount costs £480 of Capital Gains Tax, more if the exempt amount is already used on other gains (England, Wales and Northern Ireland bands).

Q What about airdrops?

HMRC (CRYPTO21250): airdropped tokens given in return for, or in expectation of, a service are subject to Income Tax, as miscellaneous income or as receipts of an existing trade. Income Tax may not apply if you receive them without doing anything in return and not as part of a trade or business involving tokens or mining. Either way, disposing of airdropped tokens may give rise to a chargeable gain. Keep a record of what you did to receive each airdrop and its value when it arrived.

Q How are NFTs taxed?

The same Capital Gains Tax rules and rates apply to disposals of NFTs held as investments. Pooling under section 104 applies only to assets of a nature to be dealt in without identifying the particular asset (CRYPTO22200), so a unique NFT has its own cost and gain. Someone who creates and sells NFTs as a business is likely to be trading, with Income Tax and Class 4 National Insurance on the profits. NFTs received for work are taxed as employment or trading income at their value when received.

Q What about DeFi lending and yield farming?

It turns on the terms. HMRC's DeFi guidance (CRYPTO61000 onwards) says you must first establish whether beneficial ownership of the tokens passes to the borrower or platform; where it does, making the loan or adding liquidity is a disposal for Capital Gains Tax (CRYPTO61620). Returns are taxed as income or capital depending on their nature and how the arrangement is structured (CRYPTO61214). Record every deposit, withdrawal and return with its sterling value at the time.

Q What if I lose access to my crypto or get scammed?

Lost private keys: losing the key is not a disposal, because the tokens still exist; if you can show there is no prospect of recovering access, a negligible value claim can be made, treating the tokens as disposed of and reacquired so a loss can be crystallised (CRYPTO22400, CRYPTO22500, section 24 TCGA 1992). Theft: HMRC does not treat theft as a disposal, because you still own the asset and have a right to recover it, so a victim of theft cannot claim a capital loss (CRYPTO22450). Paid but never received tokens: you may not be able to claim a loss. Tokens received that later become worthless: a negligible value claim may be possible, but not if they were worthless when acquired. Allowable capital losses are set against gains of the same year and unused losses carry forward against future gains; they cannot be set against income.

Q Do I need to report crypto on Self Assessment?

Report gains if your taxable gains are above the £3,000 annual exempt amount, or, if you are registered for Self Assessment, if the total amount you sold assets for was more than £50,000 (GOV.UK). You can report gains through Self Assessment, in the cryptoasset section available from 2024/25 returns, or through the Capital Gains Tax real time service. Income from crypto, such as staking, also goes on your tax return; the £1,000 trading allowance can cover small amounts of trading or miscellaneous income from services where it applies. For earlier years with unpaid tax, HMRC runs a Cryptoasset Disclosure Service.

Q How does HMRC find out about my crypto?

From 2026 UK-based cryptoasset service providers, such as exchanges and brokers, must collect user and transaction data under the Cryptoasset Reporting Framework (CARF), and their first reports to HMRC are due between 1 January and 31 May 2027 (GOV.UK). HMRC can also use its information powers to obtain records from exchanges, and it exchanges data with other tax authorities. Assume your activity will be visible and keep complete records.

Q Can I move crypto to my spouse to use their AEA?

Transfers between spouses or civil partners who are living together are treated as giving neither a gain nor a loss (section 58 TCGA 1992), so the recipient takes over your cost. When they later sell, their own £3,000 exempt amount and any unused basic-rate band apply to their gain. The transfer must be a genuine change of beneficial ownership: move the tokens to a wallet or account the spouse controls, let them decide on the sale and let the proceeds go to them, and keep a record of the transfer.

Q What records should I keep?

HMRC's guidance (Check if you need to pay tax when you sell cryptoassets) says that for each pool of tokens you must keep separate records of each transaction, including: the type of tokens, the date you disposed of them, the number of tokens disposed of and the number you have left, their value in pound sterling, bank statements, and the pooled costs before and after each disposal. Wallet addresses are also worth keeping. If you file your return on time, keep records for at least 22 months after the end of the tax year (GOV.UK, Keeping your pay and tax records), and longer if you are self-employed or HMRC opens a check. Keep records even where you think there is no gain.