UK Crypto Tax Practical Guide 2026/27: HMRC CARF Reporting
UK crypto tax 2026/27: CARF exchange reporting from 2026, CGT at 18%/24% on disposals and swaps, Income Tax on staking and mining, records and disclosure.
UK crypto tax guide for 2026/27: CARF reporting by exchanges from 2026, Capital Gains Tax on disposals and swaps, Income Tax on staking and mining, what triggers a tax event, records and how to put right earlier years.
CARF reporting from 2026
Under the Cryptoasset Reporting Framework (GOV.UK):
- UK-based reporting cryptoasset service providers - exchanges, brokers, dealers and others that transact cryptoassets for users - must collect information about users and their transactions
- First reports to HMRC are due between 1 January and 31 May 2027
- HMRC can compare the data with Self Assessment returns, and exchanges it with other participating tax authorities
- It works alongside the Common Reporting Standard for financial accounts
If you have undeclared gains or income from earlier years, putting it right before HMRC contacts you is generally better.
What's a taxable event in UK crypto?
CGT events (capital gains)
- Selling tokens for pounds or another currency
- Swapping one token for another (BTC to ETH is a disposal of the BTC at market value)
- Paying for goods or services with tokens
- Gifting to anyone other than a spouse or civil partner you live with (disposal at market value)
Income Tax events
- Mining rewards (sterling value when received)
- Staking rewards (sterling value when received)
- Airdrops received in return for, or in expectation of, a service
- DeFi returns of a revenue nature
- Tokens received as pay from employment
Not a disposal
- Buying tokens with pounds and holding them
- Moving tokens between your own wallets
- Receiving new tokens from a hard fork (the cost of the original tokens is apportioned between the two; CRYPTO22300)
- Gifting to a spouse or civil partner you live with (no gain, no loss)
CGT calculation for 2026/27
Rates: 18% within your unused basic-rate band, 24% above it. £3,000 annual exempt amount per person per year.
Matching rules (in order):
- Same-day rule: disposals are matched with tokens of the same type bought the same day
- 30-day rule: then with tokens bought in the 30 days after the disposal (stops a sale and quick repurchase crystallising a loss)
- Section 104 pool: then with the pool, at its average cost (CRYPTO22200)
Worked example: bought 1 BTC for £20,000 in 2022, sold for £40,000 in 2026/27, seller's income already above the basic-rate band, no other gains:
- Disposal proceeds: £40,000
- Allowable cost: £20,000
- Gain: £20,000
- Less the £3,000 annual exempt amount: £17,000
- Capital Gains Tax at 24%: £4,080
Record-keeping requirements
HMRC lists what to keep for each pool of tokens (GOV.UK):
- Type of tokens
- Date of each disposal
- Number of tokens disposed of and number left
- Value of the tokens in pound sterling
- Bank statements
- Pooled costs before and after each disposal
Wallet addresses and exchange transaction reports are also worth keeping. Keep records for at least 22 months after the end of the tax year if you file on time, or 5 years after the 31 January deadline if you are self-employed (GOV.UK).
Crypto tax software
Many investors use crypto tax software to import exchange and wallet histories and apply the UK matching rules. Check that any tool applies the same-day, 30-day and section 104 rules, values everything in sterling, and lets you export a report you can check; you remain responsible for the figures on your return. We do not compare or recommend providers or prices.
Putting right earlier years
If you had crypto gains or income in earlier years that you did not declare:
- Use HMRC's Cryptoasset Disclosure Service (GOV.UK, Tell HMRC about unpaid tax on cryptoassets)
- Work out the tax due for each year
- Pay what you owe, or ask HMRC about paying in instalments
- Interest runs from the original due date and penalties may apply, generally lower for unprompted disclosure
For large or complex amounts, take advice from a tax adviser before disclosing.
Related pages
Frequently asked questions
Do I need to declare crypto to HMRC in 2026?
Yes if you have taxable disposals (selling for pounds, swapping one token for another, spending tokens, gifting to anyone other than a spouse or civil partner you live with) above the £3,000 annual exempt amount or the reporting limits, or taxable income from staking, mining or airdrops. Under the Cryptoasset Reporting Framework (CARF), UK-based exchanges and other cryptoasset service providers must collect user and transaction data from 2026 and send their first reports to HMRC between 1 January and 31 May 2027.
What is HMRC CARF reporting?
The Cryptoasset Reporting Framework is an international standard for exchanging information on cryptoasset transactions. In the UK, every UK-based reporting cryptoasset service provider - exchanges, brokers, dealers and others that transact cryptoassets for users - must collect information about users and their transactions and report it to HMRC, with first reports due between 1 January and 31 May 2027 (GOV.UK). It sits alongside the Common Reporting Standard that already covers financial accounts.
How are crypto disposals taxed?
Capital Gains Tax. 2026/27 rates: 18% on gains within your unused basic-rate band, 24% above it, after the £3,000 annual exempt amount per person. Disposals include selling for pounds, swapping one token for another (each swap is a disposal), paying for goods or services with tokens, and gifting (except to a spouse or civil partner you live with). Disposals are matched with tokens bought on the same day, then in the next 30 days, then with the section 104 pool.
How is staking and mining income taxed?
Rewards are generally taxed as income at their sterling value when received, as miscellaneous income or as trading income if the activity is a trade (CRYPTO21200). When you later dispose of the tokens, the value already taxed as income is their allowable cost for Capital Gains Tax, so only the later change in value is a gain.
What records do I need to keep?
HMRC says that for each pool of tokens you must keep records of each transaction, including the type of tokens, the date you disposed of them, the number disposed of and the number left, their value in pound sterling, bank statements, and the pooled costs before and after each disposal; wallet addresses are also worth keeping (GOV.UK). If you file your return on time, keep records for at least 22 months after the end of the tax year, longer if you are self-employed (5 years after the 31 January deadline) or if HMRC opens a check.
What if I held crypto on a now-bankrupt exchange?
It depends on what you still own. If you still own tokens that have become of negligible value, you can make a negligible value claim treating them as disposed of and reacquired, which crystallises a capital loss (CRYPTO22500). HMRC does not treat theft as a disposal, and someone who paid for tokens they never received may not be able to claim a loss (CRYPTO22450). Creditor claims against an insolvent exchange need advice on the facts.
Is moving crypto between my own wallets taxable?
No - moving tokens between wallets you own is not a disposal. Swapping one token for another, including a stablecoin for another token, is. Keep records of your own transfers so you can show the tokens stayed yours.
What about DeFi - liquidity pools, yield farming, lending?
HMRC's view turns on the terms. If beneficial ownership of the tokens passes to the borrower or platform when you lend or add liquidity, that is a disposal for Capital Gains Tax (CRYPTO61620). Returns are taxed as income or capital depending on their nature. Track every deposit, withdrawal and return with its sterling value, and take advice on material positions.
Can I gift crypto tax-free?
To a spouse or civil partner you live with: no gain and no loss, and they take over your cost (section 58 TCGA 1992). To anyone else: a disposal at market value, so you may owe Capital Gains Tax. Gifts to a charity are not chargeable gains. On death, tokens form part of the estate for Inheritance Tax and the person who inherits takes them at their market value at death.
What if I had crypto activity in earlier years but didn't declare?
Use HMRC's Cryptoasset Disclosure Service to tell HMRC about unpaid tax on cryptoassets for earlier years (GOV.UK, Tell HMRC about unpaid tax on cryptoassets). Interest runs from the original due date and penalties may apply, generally lower when you disclose before HMRC contacts you. Get advice for large or complex cases.