CryptoTax UK · Guide
Bitcoin Tax in the UK
Bitcoin is treated as a chargeable asset by HMRC for individual UK taxpayers. This page explains how Capital Gains Tax typically applies to Bitcoin disposals and what records to keep. Educational only — not tax advice.
Calculate my Bitcoin CGT →When you may owe tax on Bitcoin
You may owe Capital Gains Tax when you dispose of Bitcoin. Disposals include selling BTC for GBP, swapping BTC for another crypto, spending BTC on goods or services, and gifting BTC to anyone other than a spouse or civil partner. Buying and holding is not taxable.
How HMRC values Bitcoin disposals
The disposal proceeds for a Bitcoin sale are the GBP value at the time of disposal. For non-GBP disposals (e.g. swapping BTC for ETH) you use the GBP market value of the Bitcoin at the moment of the swap. The same-day rule, 30-day rule and Section 104 pool then determine your cost basis.
Mining and staking-style rewards
Income from Bitcoin mining may be treated as miscellaneous income or trading profit depending on scale and organisation. Where mining is treated as a trade, profits are subject to Income Tax and Class 4 National Insurance. The exact treatment depends on facts and circumstances.
Bitcoin received as employment
If you are paid in Bitcoin by an employer, the GBP value at the time of receipt is typically subject to Income Tax and National Insurance through PAYE. Subsequent disposals are then subject to CGT against that GBP value as the cost basis.
Frequently asked questions
What if I bought Bitcoin years ago?
All historical acquisitions go into your Section 104 pool with their original GBP cost basis. If you cannot evidence historical prices, consider using daily closing prices from a reputable exchange or index and keep careful notes for HMRC.
Do I need to convert BTC to GBP to owe tax?
No. Any disposal — including swapping BTC for another crypto or spending it — is a taxable event valued in GBP at the time. Many UK investors are surprised by this.
What about Bitcoin lost to a hack or lost private keys?
It may be possible to make a negligible value claim to HMRC for cryptoassets that have become worthless. This is a complex area — consider speaking to a qualified accountant.
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Calculate my Bitcoin CGT →Educational guidance only. CryptoTax UK is not a regulated tax adviser and the information above does not constitute tax, legal or financial advice. Always confirm your specific position with HMRC or a qualified accountant before filing.