Generate Your UK Crypto Tax
Return in 10 Minutes

You cannot completely avoid paying tax on crypto in the UK. However, you can legally reduce your crypto tax liability by using HMRC-approved methods.

One commonly used strategy is tax loss harvesting, where capital losses from crypto disposals are offset against capital gains to reduce the overall tax payable.

Other legitimate ways to reduce crypto tax include:

• Staying within the annual Capital Gains Tax (CGT) allowance
• Claiming allowable costs, such as transaction and exchange fees
• Spreading disposals across different tax years
• Correctly classifying crypto as capital gains or income

Using a crypto tax software ensures these strategies are applied accurately while remaining fully compliant with HMRC regulations.

In the UK, cryptocurrency is treated as a taxable asset, not as currency.

Crypto tax depends on the type of activity:

• Capital Gains Tax (CGT) applies when you sell, swap, gift, or spend crypto
• Income Tax applies when you receive crypto from mining, staking, airdrops, rewards, or payments

Each taxable event must be recorded, gains or income calculated, and reported to HMRC through a Self Assessment tax return.

Crypto tax is paid through the UK Self Assessment system.

The payment process includes:

1. Calculating total crypto capital gains and income for the tax year
2. Reporting capital gains using the SA108 form
3. Reporting crypto income using the SA100 form
4. Submitting the Self Assessment tax return online
5. Paying the tax owed to HMRC via bank transfer, debit card, or online payment

Crypto tax software can automate calculations and generate accurate reports ready for submission.

Crypto tax must be paid by the Self Assessment deadline.

For the 2024–25 tax year:

• Tax year end: 5 April 2025
• Online filing deadline: 31 January 2026
• Tax payment deadline: 31 January 2026

Late filing or late payment may result in penalties and interest charges.

Yes. A crypto tax calculator automatically calculates:

• Capital gains and losses
• Crypto income
• Taxable events across multiple wallets and exchanges

A UK-specific crypto tax calculator applies HMRC pooling rules and generates tax reports that are ready for Self Assessment filing.

Yes. You may still owe tax even if you did not convert crypto into GBP.

Taxable events include:

• Crypto-to-crypto trades
• Spending crypto on goods or services
• Gifting crypto (excluding gifts to a spouse or civil partner)

These activities can trigger Capital Gains Tax under UK rules.

Failing to report crypto activity can result in:

• HMRC penalties
• Interest on unpaid tax
• Compliance checks or investigations

HMRC actively monitors crypto transactions, making accurate reporting essential.

Yes. Crypto tax software helps by:

• Tracking transactions across wallets and exchanges
• Calculating capital gains and crypto income automatically
• Generating HMRC-compliant tax reports

It reduces manual effort, minimises errors, and ensures timely and accurate UK crypto tax reporting.