How Much Tax Will I Pay?

Capital Gains Tax (CGT)

CGT annual exemption

There is an annual CGT allowance (called the annual exempt amount). You only have to pay capital gains tax on your gains above this.
Tax Year
CGT Annual Exemption
2020/21
ยฃ12,300
2021/22
ยฃ12,300
2022/23
ยฃ12,300

CGT rates for crypto gains

CGT is payable on the net taxable gain for the tax year. The taxable gain is the total capital gains less total losses in the year, less the CGT annual exemption. Capital losses brought forwards from earlier tax years, can also reduce the net taxable gain.
The rate of CGT on the net taxable gains for the tax year depends on the level of income in the same tax year and the type of asset being disposed of. Crypto gains are taxed at CGT rates of 10% and 20% depending on the income levels. Where the taxable income is more than ยฃ50,270, the CGT rate is 20%. To the extent that the taxable income is less than ยฃ50,270, this amount of capital gains are subject to the 10% CGT rate.
For example, a UK taxpayer with income of ยฃ30,270 and ยฃ60,000 taxable capital gains from crypto will pay CGT at 10% on ยฃ20,000 of the capital gains and 20% on the remaining ยฃ40,000.
Taxable Income
Tax Bracket
Crypto CGT Rate
Up to ยฃ50,270
Basic Rate
10%
ยฃ50,270 +
Higher Rate
20%
The annual exempt allowance is applied to the total capital gains across all capital assets (including property, shares, antiques etc), not just cryptoassets.

Income Tax

The rates of income tax depends on the overall income level and other types of income in the year. As a rough guide, the current income tax rates for 2021/22 are below.
Taxable Income
Tax Bracket
Tax Rate
Up to ยฃ12,570
Personal Allowance*
0%
ยฃ12,571 - ยฃ50,270
Basic Rate
20%
ยฃ50,271 - ยฃ150,000
Higher Rate
40%
ยฃ150,000+
Additional Rate
45%
* The Personal Allowance goes down by ยฃ1 for every ยฃ2 that your adjusted net income is above ยฃ100,000. This means the personal allowance is Nil if the income is ยฃ125,140 or above.
Net miscellaneous income from cryptoassets (after the deduction of allowable expenses or the trading allowance) is subject to income tax, but not national insurance.
Individuals who are classified as financial trading in cryptoassets are required to pay income tax and national insurance on their profits, rather than capital gains tax on their capital gains.
โ€‹Employment income received in cryptoassets is subject to income tax and national insurance and will most likely be paid via PAYE.