How to File Crypto Taxes in the UK: Step-by-Step Guide 2026
HMRC requires UK crypto investors to report gains on Self Assessment. This step-by-step guide covers everything — from calculating gains to submitting your tax
If you made gains from cryptocurrency in the 2025/26 tax year, you need to report them to HMRC via Self Assessment by 31 January 2027. Many UK crypto holders are unaware of this obligation or unsure how to fulfil it. This step-by-step guide covers the entire process.
Do You Need to File?
You must report crypto gains to HMRC if, in the tax year (6 April 2025 to 5 April 2026):
- Your total capital gains from crypto and other assets exceed £3,000 (the annual exempt amount), OR
- Your total proceeds from disposal of assets exceed £50,000, even if your gain is below £3,000
If you’ve only held crypto without selling, swapping, or spending it, you have no reportable event.
Step 1: Gather Your Transaction Records
Download your full transaction history from every exchange you used. Most exchanges (Coinbase, Kraken, Binance) offer CSV export of your complete trade history. You need: date of each trade, amount bought/sold, price in GBP, and any fees paid.
For wallets and DeFi transactions, you’ll need to export from your wallet application or use a blockchain explorer to pull the transaction history.
Step 2: Calculate Your Gains
HMRC uses the “section 104 pool” method for calculating crypto gains. All purchases of the same cryptocurrency are pooled, and the average cost per unit is used for calculating gains on disposal. This can be complex with many trades.
Crypto tax software makes this manageable. Koinly, CoinTracker, and TaxScouts all import from UK exchanges, apply HMRC’s pooling rules automatically, and generate a tax report you can use directly for your Self Assessment. Koinly’s free tier covers up to 25 transactions; paid plans covering unlimited transactions cost £49-£179.
Step 3: Register for Self Assessment
If you haven’t filed a Self Assessment before, register at gov.uk/register-for-self-assessment. HMRC will send your Unique Taxpayer Reference (UTR) by post within 10 working days. Don’t leave this late — registration must be complete before you can file.
Step 4: Complete the Capital Gains Section
In your Self Assessment return, navigate to the Capital Gains section. Enter your total proceeds, total cost (cost basis), and net gain or loss. If you used crypto tax software, these figures will be on your generated report. You can also provide additional details in the “Other information” box.
Step 5: Pay What You Owe
The deadline for paying any tax owed is 31 January following the tax year end. For 2025/26 gains, payment is due by 31 January 2027. HMRC charges interest on late payments at the Bank of England base rate plus 2.5%.
If you cannot pay in full, contact HMRC to arrange a payment plan via the gov.uk payment portal.
This article is for educational purposes only and does not constitute tax advice. Consult a qualified accountant for advice specific to your situation.
Stay ahead of the market
Join our community of nearly 5,000 across YouTube, LinkedIn, X, and Facebook — weekly crypto, AI, and digital lifestyle insights every Thursday. No spam. Unsubscribe any time.
Partner picks
Build a smarter digital stack
Explore curated AI, automation, wealth, and creator tools selected for practical value, transparent pricing, and clear use cases.
Disclosure: some links may be affiliate links. DigitechLifestyle may earn a commission at no additional cost to you.
