Calculate the exact profit or loss on any cryptocurrency trade — Bitcoin, Ethereum or any other token. Includes UK CGT calculation, break-even price and net proceeds after tax.
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HMRC treats cryptocurrency as a capital asset, not a currency. This means selling, swapping or spending crypto triggers a Capital Gains Tax event on any profit. The rules have been in place since 2014 and HMRC actively pursues non-compliance. Understanding exactly when CGT applies and how to calculate it correctly is essential for any UK crypto investor.
CGT is triggered whenever you dispose of cryptocurrency. Disposal includes: selling crypto for GBP, swapping one crypto for another, spending crypto to purchase goods/services, and gifting crypto (except to a spouse). Receiving crypto through mining, staking or airdrop is treated as income (Income Tax), not capital gain — though subsequent disposal of those coins is then a capital event.
When you buy the same cryptocurrency multiple times at different prices, HMRC requires you to pool all purchases and calculate an average cost per coin. This "Section 104 pool" is the cost basis for CGT. Specific identification (selling specific lots) is not permitted for crypto — unlike shares where bed-and-ISA can be used.
HMRC requires records of every crypto transaction: date, amount in crypto, GBP value at time of transaction, and exchange fees paid. Most major exchanges (Coinbase, Binance, Kraken) provide transaction histories. Tax software like Koinly or CoinTracker can automate UK crypto tax calculations. HMRC has data-sharing agreements with major exchanges.
Many crypto investors do not realise that exchanging Bitcoin for Ethereum (or any crypto-to-crypto swap) is a disposal for CGT purposes. You are deemed to have sold the first coin at its GBP value at the time of the swap, realising any gain or loss. This applies even if you never converted to GBP. Keep records of every swap with the GBP value at the time.
Yes. HMRC treats crypto as a capital asset. Selling, swapping or spending crypto triggers Capital Gains Tax on any profit. The annual exempt amount (£3,000 in 2026/27) applies. CGT rates on crypto are 10% (basic rate taxpayers) or 20% (higher rate). Mining and staking rewards are typically subject to Income Tax when received. HMRC has data-sharing agreements with major UK exchanges.
Yes, if total proceeds exceed £12,000 in the tax year, or if losses exceed £3,000. Reporting crypto losses via Self-Assessment allows you to carry them forward to offset future crypto gains. It is generally beneficial to report losses even if no tax is currently due. Losses cannot be used to offset other income (only other capital gains).
The 30-day rule (bed and breakfast rule) means if you sell and repurchase the same cryptocurrency within 30 days, the sale is matched against the new purchase price rather than the pool price. This prevents artificial loss harvesting at year-end. If you want to crystallise a loss to use against gains, you must wait 30 days before repurchasing the same asset, or buy a different cryptocurrency.