How Do I Report Cryptocurrency on My Self Assessment

When you need to report cryptocurrency

You must report cryptocurrency to HMRC if you made a taxable gain or income during the tax year.

Most people are taxed under Capital Gains Tax (CGT) rules, which apply when you dispose of crypto assets by:

• Selling them for fiat currency such as pounds

• Swapping one cryptocurrency for another

• Spending crypto to buy goods or services

• Gifting crypto to anyone other than your spouse or civil partner

In some cases, such as mining, staking, or receiving crypto through airdrops or work, you may also be liable for Income Tax.

If your total gains from all chargeable assets (including crypto) exceed the annual CGT allowance (£3,000 for 2025–26), you must report them. You must also report if your total disposals during the year exceed £50,000, even if the net gain is below the allowance.

Preparing your records before reporting

Before filling in your Self Assessment, make sure you have detailed records of your cryptocurrency transactions. HMRC expects you to keep evidence for at least five years after the Self Assessment deadline.

You will need:

• Dates of purchase and disposal for each crypto asset

• Amounts and types of cryptocurrency involved

• The pound sterling value at the time of each transaction

• Transaction fees paid

• Wallet and exchange details

If you have made many trades, crypto tax software such as Koinly or CoinTracker can help you summarise your gains and losses accurately in sterling.

How to calculate your crypto gains

To calculate your gain or loss, use this simple formula:

Gain = Value at disposal (in pounds) – Cost of acquisition – Allowable costs

Allowable costs include exchange or transaction fees, and any other expenses directly related to the purchase or sale.

If you made multiple purchases of the same cryptocurrency at different prices, you must use HMRC’s share pooling rules. These rules average out the cost of your holdings to calculate gains fairly.

Example

You bought 2 Bitcoin at £15,000 each (£30,000 total). Later, you sell one Bitcoin when its value has risen to £25,000.

Your average cost per Bitcoin is £15,000, so your gain is £25,000 – £15,000 = £10,000.

If this is your only disposal of the year, you would report a £10,000 gain on your tax return.

Adding cryptocurrency to your Self Assessment

Once you have calculated your total gains or income from crypto, you can include them in your online Self Assessment return.

Step 1: Log in to your HMRC account

Go to GOV.UK and log in to your HMRC online account. Select Self Assessment and open your tax return for the correct year.

Step 2: Choose the correct section

For most individuals, crypto gains are reported in the Capital Gains Tax summary section.

If your crypto was earned as income (for example, through mining, staking, or employment), you should declare it in the Other Income section instead.

Step 3: Enter your crypto details

You will need to provide:

• Total proceeds from your crypto disposals

• Total allowable costs

• The overall gain or loss for the tax year

• Any unused losses carried forward from previous years

If you are using the online Self Assessment form, you do not need to list every individual transaction, but you should keep detailed records in case HMRC asks for them later.

Step 4: Apply the annual allowance

If your total gains are below the annual CGT allowance of £3,000, you do not owe any tax, but you may still need to report if your disposals exceeded £50,000.

If your gains exceed the allowance, the taxable amount is your net gain minus £3,000.

Step 5: Submit and pay

Once you have completed your tax return, submit it online. The deadline for filing and paying is 31 January following the end of the tax year.

For example, if you made crypto gains in the 2024–25 tax year (ending 5 April 2025), you must submit and pay any tax due by 31 January 2026.

You can pay HMRC directly through bank transfer, debit card, or via your online account.

Reporting losses on crypto

If you made a loss from selling or swapping crypto, you should still report it to HMRC. Reporting losses allows you to offset them against future gains, reducing your future tax bills.

Losses can be:

• Offset against gains in the same tax year, or

• Carried forward indefinitely to offset against future gains

You must claim your losses within four years of the end of the tax year in which they occurred.

Example

If you made a £2,000 loss on crypto in 2023–24 but did not have any gains that year, you can carry it forward and use it to reduce your 2025–26 tax bill if you make a profit then.

Reporting crypto income

If you earned cryptocurrency rather than sold it, it may count as income. You must declare it under Other Income or Employment Income depending on how it was earned.

• Mining and staking rewards: Usually classed as income and taxed at your marginal Income Tax rate.

• Airdrops: Taxable if received as part of an activity or in exchange for work.

• Employment payments: If paid in crypto, they are treated like cash salary and subject to PAYE deductions.

When you later sell or trade that crypto, you may also pay CGT on any increase in value since the date you received it.

Keeping good records for future years

Crypto taxation can quickly become complicated, especially with frequent transactions or multiple exchanges. To make reporting easier each year:

• Keep a running log of every transaction.

• Store exchange statements and wallet records securely.

• Record market prices in pounds at the time of each transaction.

• Use reliable crypto tax software to automate calculations.

These steps make it easier to complete your Self Assessment and ensure accuracy if HMRC ever reviews your returns.

Final thoughts

If you made any crypto gains, losses, or income during the tax year, you may need to include them in your Self Assessment. Even small gains should be declared if your total disposals exceed £50,000 or your profits are above the £3,000 annual allowance.

Accurate records and clear calculations are the key to compliance. By preparing your figures early and using the correct sections of the tax return, you can avoid penalties and make sure your crypto reporting meets HMRC’s requirements.

If your situation is complex or you are unsure how to categorise your crypto transactions, consider seeking advice from an accountant experienced in cryptocurrency tax.