Cryptocurrency taxation in the UK
In March, 2021, Her Majesty’s Revenue and Customs (HMRC) issued tax guidance on cryptoassets. You can always reference that guide for additional information. Since HMRC refers to cryptocurrencies as cryptoassets, we will use that naming convention for the remainder of this guide.
To begin, the most common factors affecting how Bitcoin and other cryptoassets are taxed in the UK are as follows:
1. Are you trading as a business or for personal investment?
2. How much did you earn in all Capital Gains, not just from cryptoassets?
3. Did you sell and rebuy the same cryptoasset on the same day, or within 30 days?
Table of Contents
- Individual or Business?
- Crypto capital gains
- Calculating cost basis
- Tax-loss harvesting
- Matching Rules
- What if I use my bitcoin to buy something? Do I still have to pay taxes?
- Is there a tax exemption for small crypto purchases in the UK?
- What if I'm paid in bitcoin? How will I be taxed?
- Does trading bitcoin for another cryptoasset count as a taxable event?
- How does UK tax law treat cryptoasset airdrops?
- How does UK tax law treat cryptoasset forks?
- How am I taxed on interest earned from cryptoassets ?
- How does UK tax law treat cryptoasset staking?
- Is there software to help with crypto tax reporting?
Buy as little as $30 worth to get started
Related guides
Start from here →
What is Bitcoin?
Get a straightforward introduction to Bitcoin and why it matters.
Read this article →What is Bitcoin?
Get a straightforward introduction to Bitcoin and why it matters.
How do I buy bitcoin?
Learn how to get your first bitcoin in minutes.
How do I sell bitcoin?
Learn how to sell bitcoin into local currency safely.
How does bitcoin exchange work?
How safe is it to store your crypto on centralized exchanges?
Read this article →How does bitcoin exchange work?
How safe is it to store your crypto on centralized exchanges?
How do I create a Bitcoin wallet?
Learn how to quickly and easily create a Bitcoin wallet. Understand the different wallet types and their respective pros & cons.
Read this article →How do I create a Bitcoin wallet?
Learn how to quickly and easily create a Bitcoin wallet. Understand the different wallet types and their respective pros & cons.
How do I send bitcoin?
Sending bitcoin is as easy as choosing the amount to send and deciding where it goes. Read the article for more details.
Read this article →How do I send bitcoin?
Sending bitcoin is as easy as choosing the amount to send and deciding where it goes. Read the article for more details.
How do I receive bitcoin?
To receive bitcoin, simply provide the sender with your Bitcoin address, which you can find in your Bitcoin wallet. Read this article for more details.
Read this article →How do I receive bitcoin?
To receive bitcoin, simply provide the sender with your Bitcoin address, which you can find in your Bitcoin wallet. Read this article for more details.
What's a 'self-custodial' wallet?
Understand how the self-custodial model puts you in charge of your cryptoassets and protects you from third-party risk.
Read this article →What's a 'self-custodial' wallet?
Understand how the self-custodial model puts you in charge of your cryptoassets and protects you from third-party risk.
What is Bitcoin governance?
How does the network operate and decide on critical issues?
Read this article →What is Bitcoin governance?
How does the network operate and decide on critical issues?
What are Bitcoin debit cards?
Bitcoin debit cards make it possible to spend bitcoin anywhere credit cards are accepted.
Read this article →What are Bitcoin debit cards?
Bitcoin debit cards make it possible to spend bitcoin anywhere credit cards are accepted.
What is Bitcoin mining?
Learn why the process of minting new bitcoins, known as 'Bitcoin mining,' is in some ways similar to the process of extracting precious metals from the earth.
Read this article →What is Bitcoin mining?
Learn why the process of minting new bitcoins, known as 'Bitcoin mining,' is in some ways similar to the process of extracting precious metals from the earth.
How do bitcoin transactions work?
Understand how the Bitcoin public blockchain tracks ownership over time. Get clarity on key terms like public & private keys, transaction inputs & outputs, confirmation times, and more.
Read this article →How do bitcoin transactions work?
Understand how the Bitcoin public blockchain tracks ownership over time. Get clarity on key terms like public & private keys, transaction inputs & outputs, confirmation times, and more.
How is cryptocurrency taxed?
Get the basics of how cryptocurrencies are taxed and what it means for you.
Read this article →How is cryptocurrency taxed?
Get the basics of how cryptocurrencies are taxed and what it means for you.
Cryptocurrency taxation in the US
Get an overview of tax law as it applies to cryptocurrency in the United States.
Read this article →Cryptocurrency taxation in the US
Get an overview of tax law as it applies to cryptocurrency in the United States.
Bitcoin.com in your inbox
A weekly rundown of the news that matters, plus educational resources and updates on products & services that support economic freedom
Start investing safely with the Bitcoin.com Wallet
Everything you need to buy, sell, trade, and invest your Bitcoin and cryptocurrency securely