UK crypto tax calculator: 2026/27

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

Q: How does HMRC tax cryptocurrency in 2026/27?

Two-track system. Disposals of crypto held as investment : Capital Gains Tax at 18% (basic-rate band) or 24% (higher-rate band), with £3,000 Annual Exempt Amount. Rates were 10% / 20% before 30 October 2024 - the Autumn Budget 2024 aligned crypto CGT with residential property rates. Crypto received as income (staking rewards, mining, airdrops you actively claimed, hard-fork received tokens, DeFi yield, work paid in crypto): taxed as miscellaneous or trading income at full Income Tax rates 20% / 40% / 45% plus NI if you're trading. HMRC's official position is in the Cryptoassets Manual (CRYPTO22000+). Most retail investors are CGT-track not trading-track - HMRC has been clear that even frequent buying/selling at retail volumes is investment, not trade, unless there's a sophisticated commercial structure.

Q: What about airdrops?

Two HMRC treatments. Active airdrop (you did something to earn it - registered an interest, completed a task, held a specific token, ran a particular protocol): treated as miscellaneous income at GBP value on receipt (Cryptoassets Manual CRYPTO21250). Same dual-tax structure as staking. Passive airdrop (received with no action - "you just held BTC in 2023 and got UNI tokens"): NOT income at receipt. Base cost is ZERO. When you later dispose, full disposal proceeds are CGT-taxable gain. Worked example: receive 100 PASSIVE airdropped tokens worth £10/each on day 1 (NOT income). Sell all 100 a year later at £15/each = £1,500. Gain = £1,500 - £0 cost = £1,500 (CGT). The "active vs passive" line is genuinely fuzzy - HMRC's interpretation has been criticised for inconsistency. Conservative position: treat any airdrop where you did anything more than just hold as active = income; treat truly mass-distributed airdrops to all wallets as passive = nil cost. Document your reasoning - HMRC may challenge years later.

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

Lost / forgotten private keys : HMRC may accept this as a "negligible value claim" under Section 24 TCGA 1992 if you can demonstrate the crypto is genuinely irrecoverable. Requires substantial evidence: documented attempts at recovery, wallet address verification, etc. If accepted, you can claim a capital loss equal to your acquisition cost. Theft / scam : similar negligible-value treatment. If the stolen crypto's whereabouts are unknown and unrecoverable, claim a capital loss. Exchange collapse (FTX, Celsius) : depends on whether and when creditors are paid out. HMRC's typical approach is "wait and see" - no loss claim until the final distribution is known. "Rug pull" tokens worth nothing : claim negligible value when the project is provably defunct (no team, no liquidity, abandoned for 12+ months). Capital losses can offset gains in the same year (Section 16 TCGA) and carry forward indefinitely against future gains (Section 2A TCGA). Cannot offset against income. Properly documented losses are a legitimate tax position - HMRC will accept reasonable claims with reasonable evidence.

Q: How does HMRC find out about my crypto?

Multiple visibility channels and growing rapidly. (1) UK exchanges (Coinbase, Binance UK, Kraken UK, eToro UK) - HMRC has issued data requests under Schedule 36 FA 2008 information powers since 2019. Major UK exchanges report account holder identities and transaction summaries. (2) Cryptoasset Reporting Framework (CARF) - OECD multilateral framework due to take effect from 2026/27 with first reporting in 2027. Exchanges in CARF jurisdictions (UK, EU, US, most G20) will share customer transaction data automatically. (3) Bank deposits - large GBP deposits from exchange accounts trigger automatic reporting and HMRC follow-up. (4) Self Assessment cross-checks - HMRC's "Connect" data-matching system flags discrepancies between declared income and lifestyle indicators. (5) Voluntary disclosure - HMRC's compliance push runs nudge letters every quarter to suspected non-compliant crypto holders. The era of "HMRC will never find out" is over. Conservative position: declare honestly, keep records, expect that everything will be visible to HMRC within a few years.

Capital Gains Tax on cryptocurrency in 2026/27: 18% basic-rate / 24% higher-rate (rates aligned with residential property since 30 October 2024, up from 10% / 20%), £3,000 Annual Exempt Amount, Section 104 pool average-cost basis, same-day and 30-day Bed-and-Breakfast matching rules. Staking, mining, airdrop and DeFi yield as income at receipt. 4 worked scenarios from casual holder to whale exit, NFT special rules, lost / scammed crypto write-off, CARF reporting framework arriving 2026/27.

2026/27 crypto tax rates at a glance

CGT basic-rate

18%

Within unused £50,270 basic-rate band (was 10% pre-Oct-2024)

CGT higher-rate

24%

Above £50,270 (was 20% pre-Oct-2024)

Annual Exempt Amount

£3,000

Frozen through April 2030 (was £12,300 in 2022/23)

4 worked crypto-tax scenarios

Scenario	Acquisition / Disposal	Gain	CGT	Staking IT	Total tax	Net
Casual holder, modest gain Under-£3k AEA gain, plus £200 staking income.	In £5,000 Out £8,000 Staking £200	£3,000	£0	£40	£40	£3,120
Mid-tier investor £35k gain, hits basic→higher CGT bands; staking pushed into higher-rate IT.	In £15,000 Out £50,000 Staking £1,500	£35,000	£7,454	£300	£7,754	£28,446
Bull-market exit, higher-rate £170k gain, all higher-rate CGT 24%; staking at 40% IT.	In £30,000 Out £200,000 Staking £5,000	£170,000	£40,080	£2,000	£42,080	£130,920
Whale exit £700k gain at higher CGT, staking at 40% IT, salary in PA-taper zone.	In £100,000 Out £800,000 Staking £25,000	£700,000	£167,280	£10,000	£177,280	£537,720

The two-track crypto tax system

Capital Gains track (most retail)

Disposal of held cryptoassets
£3,000 AEA covers small gains
18% basic / 24% higher rate
Section 104 pool average-cost basis
Same-day + 30-day matching overrides pool
Reported on SA108

Income track (rewards)

Staking rewards (validator + delegate)
Mining rewards (PoW)
Active airdrops
DeFi lending interest
Work paid in crypto
Income tax at marginal rate (20% / 40% / 45%) + plus then CGT track on later disposal

Section 104 pool - the average-cost basis

HMRC treats all units of the same cryptoasset as a pool with a SINGLE average cost basis (Cryptoassets Manual CRYPTO22250). When you sell some units, the cost basis used is the AVERAGE acquisition price across the pool, not FIFO or LIFO.

Worked pool example for BTC: bought 1 BTC for £30,000 in 2023. Bought 1 BTC for £50,000 in 2024. Pool: 2 BTC total cost £80,000, average £40,000 per BTC. Sell 1 BTC for £60,000 in 2026. Gain = £60,000 - £40,000 (average) = £20,000. Remaining pool: 1 BTC at £40,000 base cost (the AVERAGE carries forward to remaining units, NOT one specific tranche).

Two override rules that match BEFORE the pool: Same-day rule - if you buy and sell the same asset on the same day, those match each other first. 30-day "Bed and Breakfast" rule - if you sell then re-buy within 30 days, those transactions match each other (the re-bought units are treated as replacing the sold ones at the SOLD price). Both rules prevent quick-rebuy CGT-harvesting schemes that would otherwise crystallise paper losses while maintaining the position.

Reporting and CARF visibility

File capital gains on SA108, crypto income on SA100. Online deadline 31 January following the tax year. Real-Time CGT reporting via Property Account is NOT mandatory for crypto (only for UK residential property).

CARF (Cryptoasset Reporting Framework): OECD multilateral framework launches in stages from 2026/27. Exchanges in CARF jurisdictions (UK, EU, US, all G20) will share customer transaction data with HMRC automatically. First exchanges of data scheduled for 2027 covering 2026 transactions. CARF builds on the Common Reporting Standard (CRS) that already shares bank account data. Effective end of the "HMRC won't find out" era for crypto - all major centralised exchange activity will be visible to HMRC from 2027 onwards.

Frequently asked questions

How does HMRC tax cryptocurrency in 2026/27?

Two-track system. Disposals of crypto held as investment: Capital Gains Tax at 18% (basic-rate band) or 24% (higher-rate band), with £3,000 Annual Exempt Amount. Rates were 10% / 20% before 30 October 2024 - the Autumn Budget 2024 aligned crypto CGT with residential property rates. Crypto received as income (staking rewards, mining, airdrops you actively claimed, hard-fork received tokens, DeFi yield, work paid in crypto): taxed as miscellaneous or trading income at full Income Tax rates 20% / 40% / 45% plus NI if you're trading. HMRC's official position is in the Cryptoassets Manual (CRYPTO22000+). Most retail investors are CGT-track not trading-track - HMRC has been clear that even frequent buying/selling at retail volumes is investment, not trade, unless there's a sophisticated commercial structure.

What is the £3,000 Annual Exempt Amount?

The first £3,000 of total capital gains in any tax year is tax-free. Applies to gains from ALL asset types combined (crypto, shares, property, business assets) - not £3,000 per asset. Cut from £12,300 (2022/23) to £6,000 (2023/24) to £3,000 (2024/25 onwards), held at £3,000 through April 2030. Each individual gets their own £3,000 - so a couple holding crypto in joint accounts gets £6,000 combined AEA. If you don't use it in a tax year, it's lost (no carry-forward). The strategy: spread disposals across tax years to use multiple £3k AEAs. Sell £6,000 worth on 5 April + £6,000 on 6 April = total disposal spread across two tax years = £6,000 of AEA used vs £3,000 for a single-day sale of £12,000.

How does the Section 104 pool work for crypto?

HMRC treats all units of the same cryptoasset as a single "pool" with an average cost basis (Cryptoassets Manual CRYPTO22250). When you sell some of your holding, the cost basis used is the AVERAGE acquisition price across all units in the pool, not the specific units you sold. Worked example: bought 1 BTC at £30,000, then 1 BTC at £50,000. Pool: 2 BTC, total cost £80,000, average £40,000. Sell 1 BTC at £60,000. Gain = £60,000 - £40,000 average = £20,000. NOT £60,000 - £30,000 (FIFO) or £60,000 - £50,000 (LIFO). The pool method applies separately to EACH cryptoasset - one pool for BTC, one for ETH, etc. Two override rules: Same-day rule - if you buy and sell the same asset on the same day, those transactions are matched first (not via pool). 30-day "Bed and Breakfast" rule - if you sell then re-buy within 30 days, those match (not via pool). Designed to stop crystallise-then-immediately-rebuy CGT-harvesting schemes.

Are staking rewards taxable?

Yes - as INCOME at the time received, at the GBP value on the receipt date (Cryptoassets Manual CRYPTO31350). Then a SECOND tax event when you later dispose of the staked tokens (CGT on the difference between receipt-date value and disposal-date value). Worked example: receive 10 ETH staking rewards on 15 June 2026 at £2,000/ETH = £20,000 of miscellaneous income (Section 687 ITTOIA 2005), taxed at your marginal IT rate. Sell those 10 ETH on 1 March 2027 at £2,500/ETH = £25,000 proceeds. Base cost is the receipt-date value £20,000. Capital gain £5,000. So total tax on the staking + disposal: £20,000 × 40% IT = £8,000 + £5,000 × 24% CGT = £1,200, total £9,200 on £25,000 of "rewards" (37%). This dual-tax structure is why staking can become eye-wateringly expensive at scale. Liquid staking derivatives (rETH, stETH) may avoid some of this if structured as wrapped CFI - but HMRC's view is yet to be tested in tribunal. Validator-direct staking is the textbook miscellaneous income case.

What about airdrops?

Two HMRC treatments. Active airdrop (you did something to earn it - registered an interest, completed a task, held a specific token, ran a particular protocol): treated as miscellaneous income at GBP value on receipt (Cryptoassets Manual CRYPTO21250). Same dual-tax structure as staking. Passive airdrop (received with no action - "you just held BTC in 2023 and got UNI tokens"): NOT income at receipt. Base cost is ZERO. When you later dispose, full disposal proceeds are CGT-taxable gain. Worked example: receive 100 PASSIVE airdropped tokens worth £10/each on day 1 (NOT income). Sell all 100 a year later at £15/each = £1,500. Gain = £1,500 - £0 cost = £1,500 (CGT). The "active vs passive" line is genuinely fuzzy - HMRC's interpretation has been criticised for inconsistency. Conservative position: treat any airdrop where you did anything more than just hold as active = income; treat truly mass-distributed airdrops to all wallets as passive = nil cost. Document your reasoning - HMRC may challenge years later.

How are NFTs taxed?

NFTs follow the same CGT rules as fungible crypto with one twist: each NFT is a UNIQUE asset, not pooled. The Section 104 pooling rules do NOT apply because no two NFTs are the same asset (Cryptoassets Manual CRYPTO22200). Each NFT has its own acquisition cost and disposal proceeds, tracked individually. Profit on each NFT disposal is a separate gain, subject to the same £3k AEA / 18% / 24% rates. NFT minting income: if you're the artist creating and selling NFTs, that's potentially trading income (Section 5 ITTOIA 2005) at marginal IT + Class 4 NI rates - much more expensive than CGT. Conservative interpretation: regular minting and selling = trade; one-off creation = capital. HMRC has been particularly aggressive on collection-style minters (1,000 NFT generative collections) - usually they go for trading classification. NFT royalties (secondary-sale fees flowing back to the creator) are clearly income, taxable at marginal IT rates. NFTs received as employment payment: full PAYE income tax + NI applies at GBP value on receipt.

What about DeFi lending and yield farming?

Highly fact-specific. HMRC's basic framework (Cryptoassets Manual CRYPTO22500-25000): Lending crypto and receiving interest in same crypto: the interest received is income (at GBP value on receipt). The principal returned is a disposal+reacquisition for CGT. Worked example: lend 1 BTC at £40k, receive 0.05 BTC interest, get 1 BTC back. (a) Disposal of lent BTC = £40k disposal, base cost £40k (if recently bought), £0 gain. (b) Interest 0.05 BTC at £40k/BTC = £2,000 income. (c) Reacquisition of 1 BTC at £40k for new base cost. Liquidity pool deposits (Uniswap V3): depositing tokens into an LP = disposal of those tokens (HMRC view since 2022), reacquisition when you withdraw = new base cost. This makes most LP positions taxable on entry AND exit. Yield farming rewards: income at receipt value. The complexity is genuine. Even tax software (Koinly, CoinTracking, Recap) often gives different answers for the same transactions because the DeFi treatment rules are ambiguous. Conservative position: document everything, prepare for HMRC questions, expect ambiguity.

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

Lost / forgotten private keys: HMRC may accept this as a "negligible value claim" under Section 24 TCGA 1992 if you can demonstrate the crypto is genuinely irrecoverable. Requires substantial evidence: documented attempts at recovery, wallet address verification, etc. If accepted, you can claim a capital loss equal to your acquisition cost. Theft / scam: similar negligible-value treatment. If the stolen crypto's whereabouts are unknown and unrecoverable, claim a capital loss. Exchange collapse (FTX, Celsius): depends on whether and when creditors are paid out. HMRC's typical approach is "wait and see" - no loss claim until the final distribution is known. "Rug pull" tokens worth nothing: claim negligible value when the project is provably defunct (no team, no liquidity, abandoned for 12+ months). Capital losses can offset gains in the same year (Section 16 TCGA) and carry forward indefinitely against future gains (Section 2A TCGA). Cannot offset against income. Properly documented losses are a legitimate tax position - HMRC will accept reasonable claims with reasonable evidence.

Do I need to report crypto on Self Assessment?

Yes if any of these apply for the tax year: (1) capital gains exceed the £3,000 AEA (must file even if gains are within AEA but total proceeds exceeded £50,000 - "proceeds limit reporting requirement"), (2) crypto income (staking, mining, airdrops, work paid in crypto) exceeds £1,000 (above the Trading Allowance), (3) you're already registered for SA for any other reason, (4) you had any disposal of UK residential property (different rules - 60-day Property Account separate). Report capital gains on SA108 (Capital Gains Tax supplementary pages); crypto income on SA100 main return. Online deadline 31 January following the tax year. Real Time CGT reporting service is OPTIONAL for crypto (mandatory only for UK residential property) - most crypto gains are reported via annual SA. HMRC's "Let Property Campaign" equivalent for crypto is the "Cryptoassets disclosure facility" - voluntary disclosure of historical underdeclared crypto gains/income for reduced penalties (10-30% of tax due vs up to 100% on discovery).

How does HMRC find out about my crypto?

Multiple visibility channels and growing rapidly. (1) UK exchanges (Coinbase, Binance UK, Kraken UK, eToro UK) - HMRC has issued data requests under Schedule 36 FA 2008 information powers since 2019. Major UK exchanges report account holder identities and transaction summaries. (2) Cryptoasset Reporting Framework (CARF) - OECD multilateral framework due to take effect from 2026/27 with first reporting in 2027. Exchanges in CARF jurisdictions (UK, EU, US, most G20) will share customer transaction data automatically. (3) Bank deposits - large GBP deposits from exchange accounts trigger automatic reporting and HMRC follow-up. (4) Self Assessment cross-checks - HMRC's "Connect" data-matching system flags discrepancies between declared income and lifestyle indicators. (5) Voluntary disclosure - HMRC's compliance push runs nudge letters every quarter to suspected non-compliant crypto holders. The era of "HMRC will never find out" is over. Conservative position: declare honestly, keep records, expect that everything will be visible to HMRC within a few years.

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

Yes - inter-spouse transfers are at no-gain-no-loss under Section 58 TCGA 1992 (must be legally married or in civil partnership, both UK tax resident). Transfer your crypto to your basic-rate spouse via wallet-to-wallet send. They take on your acquisition cost basis. When THEY later sell, they use their own £3,000 AEA and their own basic-rate band (18% CGT instead of your 24%). Documentation important: clear record of the transfer (transaction hash, date), confirmation in writing that beneficial ownership transferred (not just custody). HMRC may challenge sham transfers where the spouse never actually controls or benefits from the asset - the test is whether the spouse genuinely owns it. Joint custody arrangements where the higher-earning partner retains practical control may not pass scrutiny. Best practice: transfer to a wallet the spouse controls (their own seed phrase, their own exchange account), let them make the disposal decision, let proceeds flow to their bank account.

What records should I keep?

HMRC's record-keeping requirements (Cryptoassets Manual CRYPTO40000) require keeping for at least 5 years after the SA filing deadline: (1) the type of cryptoasset, (2) date of every transaction (acquisition AND disposal), (3) GBP value at the date of each transaction (use exchange rates or platform spot prices), (4) cumulative running total of each cryptoasset held, (5) bank statements and wallet addresses involved. Most retail-scale crypto investors use specialist software (Koinly £49-249/year, CoinTracking £130-650/year, Recap £200-400/year, Accointing £79-249/year) to ingest exchange APIs and DeFi transactions, calculate pool basis, and generate SA-ready CGT and income figures. The free spreadsheet alternative is viable for under 50 transactions; above that, software pays for itself by avoiding HMRC enquiries. Keep ALL transaction records even if you think you didn't make a gain - the burden of proof is on the taxpayer. HMRC opens about 1 in 25 crypto-flagged SA returns for enquiry (much higher than the 1 in 60 enquiry rate for non-crypto SA filings).

UK crypto tax guide - extended narrative on Cryptoassets Manual.
Capital Gains Tax calculator - general CGT calc for any asset.
CGT on shares - same Section 104 pool + same-day + 30-day rules.
CGT on second home - residential property CGT, same rates as crypto post-Oct-2024.
UK CGT rules guide - full CGT framework including BADR.
Side hustle tax calculator - if mining / staking is your trade.
Self-employed calculator - if you're a professional crypto trader.
UK residence (SRT) - SRT determines if you're liable to UK crypto tax at all.