The ubiquity of cryptocurrency has given rise to new considerations when it comes to UK taxes. Whether you are an investor buying Bitcoin or earning through mining or staking, your crypto activities could trigger capital gains tax or income tax liability under UK law. With a little planning, you can ensure full compliance with your tax obligations.Learn more :theinvestorscentre.co.uk
In the United Kingdom, cryptocurrency is taxable like any other asset. When you sell, exchange or dispose of a crypto asset, you may incur a Capital Gains Tax (CGT) liability, depending on how the value of your holding has changed since you acquired it. Similarly, when you receive a crypto token as part of an airdrop or through a bounty, you must report it to HMRC as income.
Crypto and Tax in the UK 2025 – Essential Guide for Investors
To calculate your CGT liabilities, you must maintain detailed records of your cryptocurrency transactions in GBP, including dates, transaction types, fees, and valuations. In addition, you must account for special HMRC rules that adjust your cost basis for trades made on the same day or within 30 days.
Lastly, you must determine which crypto activities are considered income and report their value in pounds at the time of receipt. For example, if you earn crypto through staking or mining, as a professional activity, you must report these earnings as trading income. Alternatively, if your activity is casual, you must report it as miscellaneous income. Using a cryptocurrency tax calculator like Blockpit ensures full compliance by applying all three cost basis methods required by HMRC.