When you dispose of cryptoasset exchange tokens (also known as cryptocurrency), you may need to pay

Capital Gains Tax.

You maypay Capital Gains Tax when your gains from selling certain assets go over the tax-free allowance.

You might need to pay Capitalother Gainstaxes Tax if you makereceive acryptoassets.

When gainyou whenmay youneed ‘dispose’to ofpay

You cryptoassetmight tokensneed (alsoto knownpay asCapital cryptocurrency)Gains by:Tax when you:

• sellingsell themyour tokens
• exchangingexchange themyour tokens for a different type of cryptoasset
• usinguse themyour tokens to pay for goods or services
• givinggive themaway your tokens to another person (unless it’s a gift to your spouse,spouse or civil partner or charity)

YouIf needyou todonate worktokens outto your total gains from disposing of certain assetscharity, includingyou cryptoassets.may Ifneed your total gain for the tax year (6 April to 5pay April) is above the Capital Gains Tax tax-freeon allowance, then you must:them.

• report

  Working theout gainif toyou HMRC

• payneed Capitalto Gains Tax

pay

Working out your gain

You need to work out your gain for each transaction you make. The way you work out your gain is different if you sell tokens within 30 days of buying them.

Your gain is normally the difference between what you paid for an asset and what you sold it for. However,In there are some situationssituations, when you may need to use the market value to work out your gain. For example, if you have cryptoassetsan asset that havehas been transferred between ‘connected persons’.

You can:

• deductcan allowablefind costs
• usemore capitalinformation losses on otherwhen assets to reduceuse yourmarket gainvalue, but you’ll need to report them to us first

.

If you’veyou have paid Income Tax on any part of your cryptoasset token value,value then you willdo not need to pay Capital Gains Tax on that amount.part. For example, you may have received the cryptoasset as part of earnings from your employment. You’ll onlystill need to pay itCapital Gains Tax on any gain you make after receivingyou’ve received them.

You Forcan example,deduct ifcertain youallowable disposecosts, including a proportion of tokensthe pooled youcost receivedof asyour earningstokens when fromworking out your employment.gain. 

Pooling

You thecan costalso use ofcapital losses to reduce your tokens

Yougain, mustbut groupyou’ll eachneed typeto ofreport tokenthem youto ownHMRC intofirst.

If, ‘pools’after anddeductions, workyour outtotal taxable gain is above the pooledannual costtax-free forallowance, eachyou typemust —report thisand ispay knownCapital Gains Tax.

What counts as ‘pooling’an theallowable costs.

cost

EachYou timecan you:deduct certain allowable costs when working out your gain, including the cost of:

• buytransaction fees
• advertising for a buyer or receiveseller
• drawing tokens,up adda contract for the amounttransaction
• making a valuation so you paidcan forwork themout toyour thegain appropriatefor poolthat transaction
• dispose

You ofcan tokens,also deduct ana equivalent proportion of the pooled costscost andof otheryour allowabletokens.

There are certain costs you cannot deduct. For example, costs:

What

How countsto asreport anand allowable cost

pay

AllowableIf costs areyou theneed expenses that can be deducted from your gain to reducereport yourand overallpay taxCapital liability.Gains TheseTax, includeyou thecan cost of:either:

• transactioncomplete fees
• advertising for a buyerSelf orAssessment seller
• drawingtax upreturn aat contractthe forend of the transactiontax year
• makinguse athe valuationCapital soGains youTax canreal worktime outservice yourto gainreport forit thatstraight transactionaway
• a

If proportionyou ofreport theand pooledpay costsusing ofSelf-Assessment, youryou tokens

Thereshould arecomplete coststhe youcryptoasset cannotsection deduct.on Forthe example,return. costs:

• you’veThis alreadysection deductedis againstavailable profitson returns for Incomethe Tax
• oftax miningyear activities2024 (liketo equipment2025 or electricity)

onwards.

Records

If you complete a tax return, you must keep

complete it in pound sterling.

For

Records eachyou poolmust ofkeep

You tokens, you must keep separate records for each transaction, including the:including:

• type of tokens
• date you disposed of them
• number of tokens you’ve disposed of
• number of tokens you have left
• value of the tokens in pound sterling
• bank statements
• a record of the pooled costs before and after you disposed of them

You may also want to keep other records such as wallet addresses.

HMRC might ask to see your records if they carry out a compliance check.

Some cryptoasset exchanges can provide reports of your transactions. These reports can be essential for working out how much tax you owe,owe. but:

• they’reHowever, these reports are not tax calculations
• they and will not keep track of your pooled costs

costs.

IfMore you need to report and payinformation

ReadYou can read further guidance on how tocryptoassets reportare and pay your Capital Gains Taxtaxed by either:.

• completing

  Watch a Selfvideo Assessmentabout taxhow returncryptoassets atare thetaxed endfor ofindividuals