UK Crypto Transaction Tax Map: 2026/27

UK crypto tax depends on the transaction, not whether cash reaches a bank account. Selling tokens, swapping one cryptoasset for another, spending tokens and making most gifts are disposals for Capital Gains Tax. Mining, staking, lending and some airdrops can create Income Tax when tokens are received, followed by a separate CGT calculation when they are later disposed of.

This 2026/27 transaction map helps individuals classify common events before applying the detailed pooling and reporting rules.

Crypto transaction tax map

Buying and holding crypto

Buying cryptoassets with pounds does not normally create a tax charge. The sterling purchase price and transaction fees enter the allowable-cost calculation. An unrealised rise in value is not taxed merely because the market moves, although another transaction involving the token may be a disposal.

Selling crypto for cash

Calculate the disposal proceeds in pounds, subtract allowable transaction costs and the matched acquisition cost, then aggregate the gain or loss with other capital disposals. For 2026/27, the individual Annual Exempt Amount is £3,000. Gains falling above the available basic-rate band are generally charged at 24%; gains within it are generally 18%, subject to the full computation.

Use our UK crypto tax overview for rates and annual reporting context.

Crypto-to-crypto swaps

Exchanging one token for another is not tax-free barter. It is a disposal of the token given up at its sterling market value and a new acquisition of the token received. This includes trades through stablecoins: exchanging ETH for USDC can crystallise a gain or loss even though no pounds were withdrawn.

Using crypto to buy something

Paying for a laptop, holiday or professional service with tokens is a disposal. The sterling value of the goods or services is normally the disposal consideration. The merchant has a separate tax and VAT analysis for what it supplies.

Transfers between your own wallets

A transfer is normally not a disposal where you retain beneficial ownership of the same tokens. Network or gas fees still need analysis: paying a fee in tokens can itself involve a disposal, and the treatment of fees depends on the transaction. Retain evidence linking both wallets to you so an exchange withdrawal is not mistaken for an unrecorded sale.

Gifts and donations

A gift to someone other than a spouse or civil partner is normally treated as a disposal at market value, even if no money is received. Transfers between spouses or civil partners living together usually occur on a no-gain/no-loss basis, transferring the historical cost. Genuine gifts to charity can be exempt, subject to anti-avoidance and consideration rules.

Mining, staking and lending rewards

Tokens received from mining, staking, lending or liquidity arrangements are generally taxable as trading income where the activity constitutes a trade, or as miscellaneous income otherwise. HMRC’s £1,000 trading and miscellaneous income allowance may be relevant to non-trading rewards, subject to its conditions and other income.

Record the sterling market value when the token becomes yours. That amount generally forms the acquisition cost for the later CGT calculation, preventing the same value being taxed twice.

Airdrops and promotional tokens

An airdrop can be Income Tax income when received in return for services, participation or another activity. An unsolicited token received without doing anything may fall outside Income Tax at receipt, but its later sale, swap or gift can still create a capital gain. Record the campaign terms and why you qualified.

DeFi deposits, wrapped tokens and liquidity pools

The legal and beneficial ownership analysis is crucial. Transferring tokens into a protocol, receiving a claim token, wrapping an asset or entering a liquidity pool may be a disposal if beneficial ownership changes or a different asset is received. Labels such as “deposit”, “stake” or “wrap” do not determine the tax result. Review the contract rights and HMRC’s DeFi guidance for material transactions.

NFT purchases and sales

Buying an NFT with cryptocurrency can create two records: a disposal of the tokens used and an acquisition of the NFT. Selling or swapping the NFT is another disposal. Valuation, connected-person and location issues can be complex, particularly where markets are illiquid.

Section 104 pools and matching rules

Individuals generally pool each type of fungible token. Disposals are matched in this order:

1. acquisitions of the same token on the same day;
2. acquisitions within the following 30 days;
3. the average cost in the Section 104 pool.

Maintain a separate pool for each token and do not use an exchange’s profit figure as a substitute. Transfers between platforms do not reset pooled costs.

Crypto losses

An allowable capital loss can offset gains in the same year or be claimed and carried forward. A fall in price without disposal is not normally a realised loss. Tokens that have become of negligible value may support a negligible-value claim, but evidence and ownership conditions matter. Lost private keys, fraud and exchange failure do not automatically produce an allowable loss.

Reporting and records

Self Assessment includes a dedicated cryptoasset section. Keep:

• exchange exports and wallet histories;
• transaction hashes and wallet addresses;
• sterling valuations and their source;
• fees, quantities and timestamps;
• Section 104 pool calculations;
• income-reward schedules;
• gift, loss and negligible-value evidence.

Cryptoasset service providers are collecting identifying and transaction information under the Cryptoasset Reporting Framework. Third-party reporting does not replace your own complete tax records.

For the filing workflow, see our guide to declaring cryptocurrency on a UK tax return.

Official guidance

• HMRC: tax when selling cryptoassets
• HMRC: tax when receiving cryptoassets
• HMRC: what counts as a crypto disposal
• HMRC: pooling and matching example

This is general 2026/27 guidance. Crypto arrangements and valuations can require transaction-specific advice.