CryptoTax UK · Guide
Gifting crypto in the UK — tax implications
Many UK crypto investors assume gifting crypto is tax-free. In most cases, it is not. HMRC treats gifting crypto (other than to a spouse or civil partner) as a disposal at market value, which may trigger a Capital Gains Tax liability. This page explains the rules. Educational only — not tax advice.
Calculate my gift disposal gain →Gifting is usually a disposal at market value
When you give crypto to another person, HMRC treats it as if you sold the crypto at its GBP market value on the date of the gift — even if no money changes hands. Your gain is therefore the market value on the gift date minus your cost basis from the Section 104 pool.
The spouse and civil partner exemption
Transfers of crypto between spouses or civil partners who are living together are typically made at 'no gain, no loss' — meaning the recipient inherits the donor's original cost basis. No CGT is triggered on the transfer itself. This can be a useful planning tool, as each spouse has their own £3,000 annual exempt amount.
Gifting to children
Gifts to children (who are not civil partners) are treated as market-value disposals, the same as any other gift. If your child is under 18 and the gift produces income (e.g. staking rewards), the income may be attributed back to the parent for Income Tax purposes under the 'parental settlement' rules.
Donating crypto to charity
Gifts of crypto to a UK registered charity may be eligible for Gift Aid on the market value of the crypto donated. The disposal is typically treated as occurring at cost (nil gain/nil loss), so CGT is not triggered. This makes charitable crypto donations potentially more tax-efficient than selling the crypto and donating the cash.
Frequently asked questions
What if I give crypto that has fallen in value?
A gift at a loss is also a disposal — but the loss is typically restricted to nil gain/nil loss if the gift is to a 'connected person' (family member). You cannot crystallise a loss by gifting to a relative. Gifts to unconnected third parties are treated at actual market value.
Does the recipient owe tax on a crypto gift?
The recipient acquires the crypto at its market value on the gift date (which becomes their cost basis for future CGT). No CGT or Income Tax is typically owed by the recipient at the point of receiving the gift — only when they later dispose of it.
Are crypto gifts subject to Inheritance Tax?
Crypto forms part of your estate for Inheritance Tax purposes. Large gifts made within 7 years of death may be subject to IHT under the potentially exempt transfer rules. This is a complex area — consider speaking to a qualified estate planning adviser.
Do I need to report a crypto gift to HMRC?
If the gift triggers a gain above the annual exempt amount, or if your total disposal proceeds exceed £50,000, it should be reported on your Self Assessment SA108. Keep records of the gift date, the recipient, the GBP market value, and your cost basis.
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Calculate my gift disposal gain →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.