UK crypto tax guide

These examples are simplified and are intended to illustrate how the rules can work in practice. Actual calculations may depend on your taxable income, transaction history, allowable costs, losses, and HMRC matching rules.

HMRC requires cryptoasset gains to be calculated using share pooling rules. This means tokens of the same type are generally pooled together, and an average cost is used when calculating gains after any same-day or 30-day matching rules have been applied.

Important: HMRC applies same-day and 30-day matching rules before share pooling. If you buy the same asset on the same day as a disposal, or within the 30 days following a disposal, those purchases may be matched first. Share pooling applies after these rules.

1. You buy 2 BTC for £20,000 (£10,000 each)
2. You buy 1 BTC for £15,000
3. Pool: 3 BTC for £35,000, average £11,667 each
4. You sell 1 BTC for £18,000

Gain: £18,000 - £11,667 = £6,333

5. After the £3,000 annual exempt amount: £6,333 - £3,000 = £3,333 taxable gain
6. Your taxable income is £35,000, leaving £15,270 of the basic rate band available — enough to cover the £3,333 taxable gain

Illustrative tax calculation:
£3,333 × 18% = £600

The gain fits within the remaining basic rate band, so the 18% rate is used in this simplified example.

Using the same gain example, but with taxable income of £65,000:

1. Taxable gain after the annual exempt amount: £3,333
2. Your taxable income exceeds the basic rate band
3. In this simplified example, the gain is taxed at the higher CGT rate

Illustrative tax calculation:
£3,333 × 24% = £800

Taxable income: £48,000
Taxable gain after the annual exempt amount: £15,000

1. Basic rate band remaining: £50,270 - £48,000 = £2,270
2. Gain taxed at basic CGT rate: £2,270 × 18% = £409
3. Remaining gain taxed at higher CGT rate: £12,730 × 24% = £3,055

Illustrative tax calculation:
£409 + £3,055 = £3,464