How cryptoassets are taxed
For most individuals, cryptoassets are treated as investments, so Capital Gains Tax applies when you dispose of them. A disposal is wider than many people expect. It includes selling for pounds, exchanging one token for another, using tokens to pay for goods or services, and giving them away, except to a spouse or civil partner or to a charity.
Some activities create income instead. Depending on the facts, tokens received from mining, staking, airdrops or as payment for work can be taxed as income when you receive them, with a later disposal of those tokens potentially giving rise to a gain too. Where activity is on a large, organised scale, HMRC may even see it as trading. We look at what you actually do before deciding on the treatment.
Pooling, same-day and 30-day rules
Tokens of the same type are generally grouped into a pool, and when you sell part of the pool you deduct a proportional share of the pooled cost. Special matching rules apply if you buy tokens of the same type on the same day as a sale or within 30 days after it, in which case the new purchase is matched with the sale first. These rules are why simple profit figures from exchanges often give the wrong answer. HMRC's page on tax when you sell cryptoassets explains the basics.
How we help
- Gather the data. We collect transaction histories from exchanges and wallets, and identify transfers between your own wallets so they are not counted as disposals.
- Calculate gains and income using the correct matching rules, sterling values and allowable costs such as transaction fees.
- Prepare your return. We report gains and income on your self assessment tax return and claim losses where available.
- Deal with HMRC letters. HMRC writes to people it believes have undeclared crypto gains. We help you check the position and reply. If past years are wrong, our voluntary disclosure service can help correct them.
- Keep better records from now on, so next year is simpler.
Records and new reporting rules
HMRC expects you to keep your own records of each transaction, including the token type, date, quantity, sterling value and running pool costs. Exchange statements alone may not be enough. Under the Cryptoasset Reporting Framework, UK cryptoasset service providers have been collecting details of users and their transactions since 1 January 2026, with first reports to HMRC due in 2027 according to HMRC's guidance for service providers. That makes accurate reporting more important than ever.
What we'll need from you
CSV exports from every exchange and wallet you have used, details of any tokens received from staking, mining or airdrops, records of crypto spent or gifted, and any HMRC letters. We never need your private keys, seed phrases or exchange passwords.
Crypto investors in Kent
We help investors across Kent, from occasional holders to people with years of complex activity. If you also have property or shares to report, we can bring everything together in one return, and our tax investigation support is there if HMRC opens a formal check. Get in touch to get started.
Frequently asked questions
Is swapping one crypto for another taxable?
Yes. Exchanging one cryptoasset for another is a disposal for Capital Gains Tax, even if you never convert to pounds. You need the sterling value of what you received at the time of the swap to work out the gain or loss. Frequent swapping can create many taxable events in a single year.
I received a letter from HMRC about crypto. What should I do?
Do not ignore it. These letters usually ask you to check whether you have declared gains or income correctly. We review your transaction history, work out whether anything is owed, and help you reply. If earlier returns were wrong, correcting them voluntarily usually leads to a better outcome than waiting.
Can I claim a loss on tokens that became worthless?
Losses on disposals can be set against gains, and unused losses must be reported to HMRC to carry them forward. If a token has become of negligible value without being sold, a negligible value claim may be possible. Lost private keys or exchange collapses have their own considerations, so we look at the facts.
Is staking income taxed as income or gains?
It depends on how the staking works and the nature of your activity. In many cases tokens received as staking rewards are treated as income when received, and a later sale may also give rise to a gain. We review the arrangement and HMRC's guidance to apply the right treatment to your situation.
Cryptocurrency Tax Returns across Kent
We help clients throughout the county, including: