UK Crypto Tax Rules & Regulations

In the UK, cryptocurrency is classified as property (not currency) by HMRC. That means you may be liable to pay tax depending on how you acquire, hold, or sell crypto assets.

When You May Owe Tax

• Capital Gains Tax (CGT): Applies when you sell, swap, gift, or convert crypto for profit.
• Income Tax: Applies if you receive crypto through mining, staking, airdrops, or as salary.
• Record Keeping: You must maintain complete records of crypto transactions — including dates, amounts, counterparties, and GBP value at the time.

Crypto Tax Rates in the UK (2024–2025)

• Capital Gains Tax:
  • 10% for basic rate taxpayers
  • 20% for higher/additional rate taxpayers
• Annual CGT Allowance: Only £3,000 in 2025 (down from £6,000 in 2024)
• Income Tax: Based on your income band (20%, 40%, or 45%)

How LB Capital Helps You Reduce Liability — Legally

Our experienced crypto tax advisors help clients avoid costly mistakes and legally reduce their tax obligations by:

• Using loss harvesting to offset gains and reduce your tax bill
• Identifying which transactions qualify for capital treatment vs. income
• Tracking allowable expenses and fees that can be deducted
• Structuring transactions more tax-efficiently through planning
• Handling HMRC disclosures or disputes on your behalf
• Offering tailored support for HNW individuals and business clients

Start Your Consultation Now

Our team handles everything from reporting and compliance to tax-saving strategies — ensuring peace of mind. Simply fill in the form on the right → and we’ll get back to you within 24 hours.