In the UK, as in most countries, taxes are collected from individuals based on their income, assets, and activities. It’s important to know which activities are taxable in order to comply with HMRC regulations and optimise your tax position.Check this out :theinvestorscentre.co.uk
UK taxation for cryptocurrency is largely dependent on how the asset is acquired and used. Depending on the activity, it could be subject to capital gains tax (CGT), income tax, or both. For example, earnings from staking and DeFi lending are often taxed as income, while the tax treatment of mining is typically considered a capital gain.
Crypto and Tax in the UK 2025 – What Investors Should Prepare For
The HM Revenue and Customs (HMRC) is ramping up its focus on crypto taxes and has established data-sharing agreements with major centralised exchanges. As such, it’s critical that you’re prepared to report your crypto transactions.
If you sell or dispose of a cryptocurrency, you’ll be liable for CGT on any gains (i.e. the difference between your purchase and sale price). If you have a registered loss, you can offset this against your gains, lowering your overall tax liability.
For CGT purposes, it’s important to keep track of your purchase and disposal dates as well as the amount you paid for each cryptocurrency. This includes identifying your cost basis, which you can calculate using the following method: