CryptoTax UK · Guide
Crypto Margin Trading Tax UK — HMRC Guide for 2025/26
Margin trading amplifies both gains and losses — and adds complexity to your UK tax position. This guide explains how HMRC likely treats leveraged crypto positions. Educational only — not tax advice.
Estimate my margin trading tax →Tax treatment of margin trades
Leveraged crypto positions where you borrow funds to buy crypto and later sell are typically treated as disposals of the underlying crypto asset for CGT purposes. Perpetual contracts and leveraged tokens may be treated differently.
Funding rate payments
Funding rates paid or received on perpetual contracts may be treated as miscellaneous income or allowable expenses. Keep records of all funding rate transactions.
Liquidations
A forced liquidation of a margin position is a disposal event for the underlying asset. The proceeds are the liquidation value and any loss realised may be a capital loss.
Frequently asked questions
Are margin trading losses tax deductible in the UK?
Capital losses on crypto margin positions may generally be offset against capital gains in the same or future tax years.
Do I need to declare every margin trade?
You need to keep records of every position opened and closed. On your Self Assessment you report net gains and losses.
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Estimate my margin trading tax →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.