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Cryptocurrency Tax

Making sure you pay the right tax

Filling Out Tax Form_edited

Do you have to pay tax on cryptocurrency in the UK?

If you buy and ‘dispose’ of cryptocurrency as a personal investment, you’ll pay capital gains tax on the profits you make. HMRC refers to cryptocurrency units as tokens.


It says that disposal is a broad term that includes:


  • Selling tokens for money

  • Exchanging tokens for a different type of token

  • Using tokens to pay for goods or services

  • Giving away tokens to another person (unless it’s a gift to a spouse or civil partner)

The capital gains tax rates for disposing cryptocurrencies are:

  • 20 per cent for higher and additional rate taxpayers

  • 10 per cent for basic rate taxpayers (but this depends on your overall taxable income, the size of the gain, and your deducted allowances, as you’ll pay 20 per cent on any amount above the basic tax rate)

The tax-free allowance for capital gains tax is £6,000.

The tax you pay can be different depending on how you have earnt income, (ie staking interest is taxed as miscellaneous income). Whether you buy and sell, stake, mine, received airdrops, Defi, inherit or have received income in crypto, working out what you owe can be a daunting task. We simplify this process and make sure you only pay what you owe. Contact us today and see how we can help you.

The most common reasons that a tax return may be required are as follows

  • You are self employed or a partner in a partnership

  • You are a company director

  • You have large amounts of savings or investment income

  • You have untaxed savings or investment income

  • You own land or property that is being let

  • Your household receives Child Benefit and you have income in excess of £50,000

  • You have income from overseas

  • You have sold or given an asset away (such as a holiday home or some shares)

  • You’ve lived or worked abroad or aren’t domiciled in the UK

The staff at HM Revenue & Customs are not tasked to advise you on how to organise your affairs and minimise your tax. Therefore, if you want to make sure you are paying the right amount of tax, you should consult a professional.

At CryptoCountancy we use HM Revenue & Customs-approved software to

  • Complete your tax return

  • Calculate your tax liability

  • File the return online

  • Liaise with you on the amounts to be paid and when they are due

As part of the above service, we can analyse your self assessment tax return to see if any tax savings can be made and we can also review the form to see if there are any anomalies that need to be addressed before the return is submitted.

This process helps to minimise your risk of a HM Revenue and Customs inquiry into your tax affairs. If you are experiencing cash flow problems, we can explore the possibilities of deferring your tax payments or negotiating a payment plan with HM Revenue and Customs on your behalf.

By giving you a fixed, competitive price, we can take the worry away when it comes to self assessment tax returns; allowing you to concentrate on running your business.

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