Bitcoin Tax in the UK: The Official Guidance

Notes for completing the 2025-26 Capital Gains summary pages, including the dedicated cryptoassets section in boxes 13.1 to 13.8.

Explains how Income Tax and National Insurance apply to cryptoassets received from mining, staking, lending, liquidity pools or an employer.

Explains when Capital Gains Tax may be due on selling, exchanging, spending or giving away cryptoassets, and how to work out gains, pool costs, keep records and report.

Describes the powers HMRC caseworkers use to obtain information from cryptoasset exchanges, including Schedule 23 and Schedule 36 notices, the importance of the exchange's jurisdiction, and routes used in criminal cases.

Explains HMRC's view that a derivative over a cryptoasset gives contractual rights and obligations, so this manual does not generally apply, and points to the separate derivative contract rules for companies.

Describes how cryptoasset exchanges work, the custodial and non-custodial distinction, and the deposit, trading and withdrawal fees they charge, noting that tax deductions for such fees are restrictive.

Sets out why individuals must keep their own cryptoasset records, the wallet, exchange and bank evidence that counts, and the transaction details HMRC expects to see in an enquiry.

Sets out the customer details cryptoasset service providers must collect from 1 January 2026 under the Cryptoasset Reporting Framework, and the penalty and service-refusal consequences of not supplying them.

Sets out HMRC's view that buying and selling cryptoassets is not gambling, noting the term is undefined in the tax Acts and that each transaction turns on its own facts.

Contents of the manual's individuals section, covering which taxes apply, trading, Income Tax, Capital Gains Tax, valuation, stamp duties, Inheritance Tax and pension contributions.

Sets out which taxes apply to individuals holding cryptoassets: Capital Gains Tax on disposals, Income Tax and National Insurance on employment, mining or airdrop receipts, and Income Tax where a trade exists.

Explains HMRC's view that buying and selling exchange tokens amounts to a financial trade only in exceptional cases, and how Income Tax then takes priority over Capital Gains Tax.

Explains HMRC's view that cryptoassets received as employment income are readily convertible assets, so Income Tax and National Insurance apply to their value, with later disposals potentially giving Capital Gains Tax.

Covers how mining rewards are taxed for individuals, depending on whether mining amounts to a trade, with non-trading receipts taxed as miscellaneous income and later disposals possibly attracting Capital Gains Tax.

Explains HMRC's view of staking rewards received by individuals: whether the activity is a trade, otherwise miscellaneous income at sterling value on receipt, with Capital Gains Tax on later disposal.

Describes HMRC's treatment of airdropped tokens received personally, when Income Tax applies or may not apply, and the Capital Gains Tax position on later disposal.

Covers how an individual's trading losses may be offset against future profits or other income, and how losses on miscellaneous income may be carried forward to later years.

Explains why tokens count as a chargeable asset for Capital Gains Tax, and HMRC's expectation that an individual's buying and selling will normally be investment activity rather than trading.

Explains what counts as a disposal of tokens for Capital Gains Tax, including selling, swapping, spending and gifting, and what does not, such as moving tokens between own wallets.

Covers HMRC's view on whether moving tokens between distributed ledgers is a Capital Gains Tax disposal, including how one-way transfers carry allowable costs across to the second cryptoasset.

Lists which costs HMRC regards as allowable when calculating Capital Gains Tax on token disposals, including how exchange fees, swap fees and mining costs are treated under section 38 TCGA 1992.

Explains how tokens of each type are held in a section 104 pool for Capital Gains Tax and how the same-day and 30-day matching rules apply.

Works through a basic section 104 pool example, showing pooled cost building up across two purchases and a proportion of that cost being deducted on a part sale.

Works through a pooling example where same-day acquisitions and disposals are matched first, showing the resulting gain and how unmatched tokens and their cost are added to the section 104 pool.

Works through an example of the 30 day matching rule, showing how acquisitions after two disposals are matched, gains calculated and unmatched tokens added to the section 104 pool.

Works through an example of how the same day rule applies alongside a part disposal of a section 104 pool when several acquisitions and disposals occur on one day.

Works through an example of how the 30 day rule interacts with a section 104 pool, where tokens bought within 30 days of a sale are matched before the pool.

Works through a pooling example in which the same day rule, the 30 day rule and part disposals of the section 104 pool interact, with the gains, losses and closing pool shown.

Works through an example of crypto-to-crypto exchanges affecting two section 104 pools at once, applying same-day, 30 day and pooling rules to calculate gains and losses on each disposal.

Explains HMRC's treatment of transaction fees paid in tokens as a separate disposal at market value as well as a cost, with a worked example of the resulting computations.

Describes how soft and hard forks work and HMRC's treatment of new tokens, including section 43 TCGA, a separate section 104 pool, cost apportionment and negligible value claims.

Describes HMRC's treatment of airdropped tokens for Capital Gains Tax, covering which section 104 pool they enter and why section 43 TCGA 1992 does not apply to them.

States HMRC's position that cryptoassets are not currency or money, so sections 252 and 269 of the Taxation of Chargeable Gains Act 1992 do not apply to them.

Covers how gains and losses on cryptoassets must be converted into pound sterling, including establishing an exchange rate for crypto-to-crypto trades and keeping details of the valuation method.

Sets out HMRC's view on Stamp Duty, Stamp Duty Reserve Tax and Stamp Duty Land Tax for exchange tokens, both when transferred and when given as consideration.

Describes HMRC's view that cryptoassets are not currency or money, so cannot be used for tax-relievable contributions to a registered pension scheme, and what follows if they are transferred in.

Contents of the manual's business section, covering trading, mining, staking, Corporation Tax, Income Tax, VAT, stamp duties and the Cryptoasset Reporting Framework.

Explains which taxes can apply to a business that buys, sells or accepts exchange tokens, and that the answer depends on the business's structure and activities.

Explains that taxable profits from cryptoassets are calculated in sterling, how an exchange rate is set where a transaction has no sterling value, and that trading profits generally follow accepted accounting practice.

Explains how HMRC's view of whether buying and selling exchange tokens amounts to a financial trade depends on frequency, organisation and intention, and the resulting Income Tax or company profit treatment.

Explains how mining rewards are taxed for businesses and companies, contrasting casual mining with dedicated equipment bought for profit, and covering miscellaneous income, trading profits and later chargeable gains.

Explains HMRC's view of staking by businesses, covering when it amounts to a trade, when awards are taxed as miscellaneous income, and later Capital Gains Tax or Corporation Tax on chargeable gains.

Explains that businesses accepting or paying exchange tokens in the course of a trade must include the revenue profits in taxable trading profits for Income Tax or Corporation Tax.

Describes the Cryptoasset Reporting Framework, under which UK reporting cryptoasset service providers must carry out due diligence and report customer transaction data to HMRC annually from 1 January 2026.

Contents of the manual's guidance on decentralised finance lending and staking, covering definitions and the Income Tax, Corporation Tax and chargeable gains treatment.

Introduces DeFi lending and borrowing of cryptoassets, and sets out HMRC's view that the lender's return is not interest for tax purposes because cryptoassets are not money.

Explains what the guidance means by DeFi lending and staking, describing the lender-borrower and liquidity-provider arrangements and noting these terms have no statutory meaning.

Describes the operating models for lending tokens or providing liquidity to DeFi platforms, how returns are paid, and why the platform's terms decide whether income or a chargeable gain arises.

Introduces the Income Tax treatment of returns from making DeFi loans, covering when activity is a trade, and when a return is income rather than a Capital Gains Tax matter.

Explains how the return on a DeFi loan or stake is taxed for Income Tax, depending on whether it is capital or revenue, including the miscellaneous income sweep-up provisions.

Sets out how the return on a DeFi loan or liquidity provision is charged to Income Tax as miscellaneous income at its sterling value, while repayment of principal is a capital matter.

Explains the factors HMRC uses to decide whether a DeFi lending or staking return is capital or revenue, such as whether it is agreed in advance and how it is paid.

Covers whether sale and repurchase or securities lending rules in sections 263A and 263B TCGA 1992 can apply to DeFi lending, noting HMRC's position that tokens will generally not be securities.

Describes when making a DeFi loan or stake is a Capital Gains disposal because beneficial ownership passes, and how deferred consideration is valued under sections 48(1) and 37 TCGA 1992.

Explains HMRC's view that borrowing tokens is an acquisition, with the borrower's obligation to return tokens valued as the acquisition cost, citing Chaney v Watkis.

Covers whether giving tokens as DeFi loan collateral is a disposal, depending on the platform's terms, and the Capital Gains Tax treatment of withdrawal, liquidation and section 26 TCGA.

Explains the Capital Gains Tax consequences for borrowers and lenders when a DeFi loan is satisfied or a stake is withdrawn, including section 48 and section 22 TCGA 1992 treatment.

Works through a Capital Gains example of lending 100 tokens for a fixed period, where section 48(1) TCGA 1992 brings the known future quantity into the computation immediately, producing a loss.

Works through an example of a token loan with a 5% return, showing how the full future repayment enters the Capital Gains computation while the return is taxed as income.

Works through an example of a token loan with no fixed end date, showing how section 48(1) TCGA brings the principal in and a right to future returns is valued.

Works through a Capital Gains Tax example of an individual transferring tokens to a DeFi lending platform for a liquidity token, apportioning value across tokens and adjusting section 104 pools.

Works through a Capital Gains example where a lender's collateral is partly liquidated, including a penalty token, showing the gain calculated and the resulting adjustment to the section 104 pool.

Works through an example of a borrower repaying a token loan with its return, showing the chargeable gain on tokens transferred and the adjustment to the section 104 pool.

Works through an example of a fixed-term token loan with a 5% return, showing how section 48 TCGA brings the repayment in and section 37 excludes the income element.

Works through an example of a lender whose loan of an ascertainable token quantity is satisfied after the tokens fell in value, showing income on the return and the capital loss.

Works through a Capital Gains example of an open-ended token loan with a percentage return, valuing the unascertainable right and treating extra tokens received on repayment as miscellaneous income.

Works through an example of exchanging two tokens for liquidity provider tokens, then later redeeming them, showing gain computations, apportioned values and section 104 pool adjustments.

HMRC's internal manual setting out its view of how UK taxes apply to cryptoassets for individuals, businesses, decentralised finance and compliance.

Tax information and impact note on introducing the Cryptoasset Reporting Framework in the UK from 1 January 2026.

Policy note on regulations restricting cryptoasset Exchange Traded Notes to Innovative Finance ISAs from 6 April 2026, with existing holdings allowed to remain.

Explains the identifying details individuals and entities must give to cryptoasset service providers under the Cryptoasset Reporting Framework.

Explains when and how cryptoasset service providers must report user and transaction data to HMRC under the Cryptoasset Reporting Framework.

Describes HMRC's voluntary disclosure service for unpaid tax on cryptoassets, including calculating tax, interest and penalties and submitting a disclosure.

Statutory instrument (SI 2025/744) implementing the OECD Crypto-Asset Reporting Framework, requiring UK-linked providers to carry out due diligence and report user information to HMRC.