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Recap HomeCrypto Tax Guide (Lite)HMRC Cryptoassets Manual
  • A Technical Guide to Cryptocurrency Tax for UK Individuals
    • What are Cryptoassets?
    • Who are Recap?
  • CRYPTOCURRENCY TAX
    • Do I Need to Pay Tax on my Cryptoassets?
    • Which Taxes Apply?
      • Capital Gains Tax (CGT)
      • Income tax
      • VAT
      • Inheritance tax
      • Stamp Duty
    • How Much Tax Will I Pay?
    • New HMRC DeFi Guidance
      • Overview of HMRC guidance
      • 1️⃣Is the Reward Income or Capital?
      • 2️⃣Is Beneficial Ownership (BO) transferred?
      • 3️⃣Consider the Tax Treatment
        • Staker/Lender/Collateral Provider
          • Income Rewards
            • BO transferred
              • ➡️At Point of Entry
              • ⬅️At Point of Exit
              • 💧On Liquidation
              • 💎On Receipt of Income Reward
              • Example 1A
              • Example 2A
            • BO not transferred
              • ➡️At Point of Entry
              • ⬅️At Point of Exit
              • 💧On Liquidation
              • 💎On Receipt of Income Reward
              • Example 1B
              • Example 2B
          • Capital Rewards
            • BO transferred
              • ➡️At Point of Entry
              • ⬅️At Point of Exit
              • 💧On Liquidation
              • 💎On Receipt of Capital Reward
              • Example 1C
              • Example 2C
            • BO not transferred
              • ➡️At Point of Entry
              • ⬅️At Point of Exit
              • 💧On Liquidation
              • 💎On Receipt of Capital Reward
              • Example 1D
              • Example 2D
        • Borrower
    • Investor or Trader?
      • Badges of Trade Limitations
      • HMRC Approach
      • Court Cases involving Financial Traders
    • Capital Gains Tax
      • Calculating the Capital Gains Position
      • Disposal proceeds
      • Disposals to Connected Parties
      • Allowable costs for CGT
        • Exchange fees
        • Forks - affect on allowable costs
      • Capital Loss Claims
    • Income Tax
      • Financial trading income
      • Miscellaneous Income
      • Employment income
    • Fair Market Valuation
  • TRANSACTION TYPES
    • 💷Selling Crypto for Fiat
    • 🔄Trading Crypto to Crypto
    • 🛍️Purchases using Crypto
    • 🎁Gifts
    • 💍Spouse Transfers
    • 🎗️Gifts to Charity, CASCs & Bodies for a National Purpose
    • 🎈Airdrops
    • 🤝Staking
    • 💸Transfers
    • 🍴Forks
    • ⛏️Mining
    • 👛Employment income
      • UK Employer
      • Overseas employer
      • National Minimum Wage (NMW)
    • 🚨Lost & Stolen Crypto
    • 🎲Gambling
    • 💧Liquidity Pools
      • Example - Liquidity pool
    • ⬆️Token Upgrades/Swaps
    • 🔮Cryptoasset derivatives (CFDs, Futures and Margin Trading)
    • 💼Crypto Loans
    • 🔄REPOS
    • 🪞Reflections Rewards
    • 👥Referral Income
    • 💳Cashback
    • 🎨NFTs (Non Fungible Tokens)
    • 🎮NFTs earned playing games
  • Record Keeping
  • Filing Your Self-Assessment
    • How to Register for Self-Assessment
    • How to Fill In the Tax Return
    • Submitting the Tax Return and Paying the Tax
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On this page
  • When is Capital Gains Tax payable?
  • CGT is payable if the net capital gain is more than the annual exemption...
  • CGT is not payable if the net capital gain is less than the annual exemption...
  • The Recap CGT Report
  • How much Capital Gains Tax do I need to pay?

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  1. CRYPTOCURRENCY TAX
  2. Capital Gains Tax

Calculating the Capital Gains Position

PreviousCapital Gains TaxNextDisposal proceeds

Last updated 8 months ago

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The allowable costs are deducted from the disposal proceeds, to calculate the capital gain or capital loss on each and every disposal made in the tax year.

The capital gain or loss needs to be calculated for each disposal, although disposals on the same day of the same type of cryptoasset can be aggregated.

Assuming there are no disposals to connected parties, any capital losses in the tax year are deducted from the capital gains in the tax year.

When is Capital Gains Tax payable?

The annual Capital Gains Tax exemption is £12,300 for tax years 2021/22 and 2022/23.

CGT is payable if the net capital gain is more than the annual exemption...

If the net capital gain (after the offset of capital losses in the year) is more than the annual CGT exemption, the excess is subject to capital gains tax for a UK individual taxpayer; unless it can be reduced by capital losses brought forwards from a prior tax year.

Brought forward losses can only be used if they have been declared to HMRC previously on a Tax Return or by letter.

CGT is not payable if the net capital gain is less than the annual exemption...

If the net capital gain is less than the annual CGT exemption, no CGT is payable.

For further details on when and how to report gains and losses to HMRC, when to register with HMRC and when to pay the tax:

The Recap CGT Report

The Recap Capital Gains Tax downloadable pdf report provides a summary of all the relevant information to be included on your annual Self Assessment Tax Return.

The intention is that you pass our report to your accountant and they will be able to complete the Tax Return and advise on your tax position, based on your specific circumstances.

A capital gain or capital loss is calculated for every disposal and detailed tax calculations are also included in the report. You will have a full audit trail in case HMRC decide to investigate the capital gains entries on your Tax Return.

Recap can also provide a record of the allowable costs of the cryptoassets still held, via the Acquisitions Report.

How much Capital Gains Tax do I need to pay?

The rate of CGT payable on disposals of cryptoassets depends on your other income and capital gains in the tax year.

Take a look at our article for the latest capital gains tax rates:

Filing Your Self-Assessment
LogoUK Tax Rates 2023 | Calculating Crypto Capital Gains & Income Tax