In the UK, you generally pay tax on crypto when you realise a gain or receive income, not simply for holding. Many people are surprised that even swapping one crypto for another, spending it, or gifting it can create a taxable event.

If HMRC asks you “What have you done with your crypto?”, this page helps you answer honestly and confidently.

When tax usually applies  

Tax can apply in the UK if you:

• Sold crypto for GBP, EUR, USD, or other fiat.

• Swapped one crypto for another (e.g., BTC → ETH).

• Spent crypto to buy goods or services.

• Gifted crypto to someone who is not your spouse or civil partner.

• Earned staking, DeFi, or mining rewards.

• Been paid in crypto by an employer, client, or platform.

If any of these apply and your gains are above the annual exempt amount, you may owe tax.

When tax may not apply  

Tax does not automatically apply if:

• You only hold crypto and have not disposed of it.

• Your total gains in the year are below the annual exempt amount (£3,000 in 2025–26).

• You are transferring crypto between your own wallets (no sale or swap).

But even if you don’t owe tax, you still need to record the activity in case HMRC asks.

If you need help with crypto taxes try these crypto tax solutions

Koinly free crypto tax software

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CoinLedger - The Number 1 Free Crypto Tax Software