# Capital Gains Tax

![](/files/ZmoLk25pQ4GSfJnavJ9S)

## Investing in cryptoassets

HMRC expect most individuals with cryptoasset activity to be treated as an investor (for capital appreciation), subject to the capital gains tax regime. Where this is the case, they are liable for capital gains tax on the disposal of cryptoassets. 

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In exceptional circumstances will a taxpayer be treated as a ‘[financial trader](/uk-tax-guide-for-individuals/cryptocurrency-tax/investor-or-trader.md)’ in cryptoassets. In which case these disposals are treated as business trading income, subject to income tax and national insurance.
{% endhint %}

## Taxable events

Individuals investing in cryptoassets must calculate the capital gain or capital loss they have made whenever they “dispose” of cryptoassets.

**HMRC guidance confirms that disposals (taxable events) include:** 

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[**Selling cryptoassets**](/uk-tax-guide-for-individuals/transaction-types/selling-crypto-for-fiat.md) for fiat money (e.g. GBP, USD, EUR).
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[**Exchanging cryptoassets**](/uk-tax-guide-for-individuals/transaction-types/trading-crypto-to-crypto.md) for a different cryptoasset (e.g. exchanging Bitcoin to Ripple).
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[**Using cryptoassets to pay for goods or services**](/uk-tax-guide-for-individuals/transaction-types/purchases-using-crypto.md) (e.g. paying fees on crypto trades, paying fees on crypto withdrawals and deposits of cryptoassets, buying a Starbucks Coffee or paying for a software subscription.
{% endhint %}

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[**Giving away cryptoassets**](/uk-tax-guide-for-individuals/transaction-types/gifts.md) to another person is deemed to be a disposal at market value unless to a [spouse/civil partner](/uk-tax-guide-for-individuals/transaction-types/spouse-transfers.md) or a [qualifying charitable/CASC donation.](/uk-tax-guide-for-individuals/transaction-types/gifts-to-charity-cascs-and-bodies-for-a-national-purpose.md)
{% endhint %}

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[**Lending out your cryptoassets**](/uk-tax-guide-for-individuals/cryptocurrency-tax/new-hmrc-defi-guidance/overview-of-hmrc-guidance.md) where there is a transfer of [beneficial ownership](/uk-tax-guide-for-individuals/cryptocurrency-tax/new-hmrc-defi-guidance/is-beneficial-ownership-bo-transferred.md) of the tokens let out to another person, party, protocol or platform. 
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[**Staking your cryptoassets**](/uk-tax-guide-for-individuals/cryptocurrency-tax/new-hmrc-defi-guidance/overview-of-hmrc-guidance.md) where there is a transfer of [beneficial ownership](/uk-tax-guide-for-individuals/cryptocurrency-tax/new-hmrc-defi-guidance/is-beneficial-ownership-bo-transferred.md) of the tokens staked to another person, party, protocol or platform. 
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[**Adding and removing your cryptoassets to/from a liquidity pool**](/uk-tax-guide-for-individuals/cryptocurrency-tax/new-hmrc-defi-guidance/overview-of-hmrc-guidance.md) where there is a transfer of [beneficial ownership](/uk-tax-guide-for-individuals/cryptocurrency-tax/new-hmrc-defi-guidance/is-beneficial-ownership-bo-transferred.md) to another person, party, protocol or platform. There may or may not be redemption/claim tokens received by the provider.
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[**Depositing cryptoassets as collateral for a loan you take out**](/uk-tax-guide-for-individuals/cryptocurrency-tax/new-hmrc-defi-guidance/overview-of-hmrc-guidance.md) where there is a transfer of [beneficial ownership](/uk-tax-guide-for-individuals/cryptocurrency-tax/new-hmrc-defi-guidance/is-beneficial-ownership-bo-transferred.md) of the tokens locked away to another person, party, protocol or platform. This also includes [REPOS](broken://pages/2DIpO6Vpxw9azCTx65nV).
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## Not taxable events

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[**Moving tokens**](/uk-tax-guide-for-individuals/transaction-types/transfers.md) between wallets owned by the same person does not result in a taxable disposal.
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Purchasing cryptoassets is not taxable.
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##    

{% content-ref url="/pages/F8fQKCZq031axbAuXjie" %}
[Calculating the Capital Gains Position](/uk-tax-guide-for-individuals/cryptocurrency-tax/capital-gains-tax/calculating-the-capital-gains-position.md)
{% endcontent-ref %}

{% content-ref url="/pages/FIwklZDKZCGyzkn5jqK3" %}
[Disposal proceeds](/uk-tax-guide-for-individuals/cryptocurrency-tax/capital-gains-tax/disposal-proceeds.md)
{% endcontent-ref %}

{% content-ref url="/pages/f54PeTAUQuP9lRLNMbVQ" %}
[Disposals to Connected Parties](/uk-tax-guide-for-individuals/cryptocurrency-tax/capital-gains-tax/disposals-to-connected-parties.md)
{% endcontent-ref %}

{% content-ref url="/pages/h3rP0ZzqaHP1rDkWWPG2" %}
[Allowable costs for CGT](/uk-tax-guide-for-individuals/cryptocurrency-tax/capital-gains-tax/allowable-costs-for-cgt.md)
{% endcontent-ref %}

{% content-ref url="/pages/ThzRpsVGXTRpCvHj7sSN" %}
[Capital Loss Claims](/uk-tax-guide-for-individuals/cryptocurrency-tax/capital-gains-tax/capital-loss-claims.md)
{% endcontent-ref %}


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