# How Much Tax Will I Pay? ![](/files/lTnLC14nK1A3uLmaeIfX) ### 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 | £12,300 | | 2021/22 | £12,300 | | 2022/23 | £12,300 | #### 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 £50,270, the CGT rate is 20%. To the extent that the taxable income is less than £50,270, this amount of capital gains are subject to the 10% CGT rate. For example, a UK taxpayer with income of £30,270 and £60,000 taxable capital gains from crypto will pay CGT at 10% on £20,000 of the capital gains and 20% on the remaining £40,000. | Taxable Income | Tax Bracket | Crypto CGT Rate | | :------------: | :---------: | :-------------: | | Up to £50,270 | Basic Rate | 10% | | £50,270 + | Higher Rate | 20% | {% hint style="warning" %} The annual exempt allowance is applied to the total capital gains across all capital assets (including property, shares, antiques etc), not just cryptoassets. {% endhint %} ### 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 £12,570 | Personal Allowance\* | 0% | | £12,571 - £50,270 | Basic Rate | 20% | | £50,271 - £150,000 | Higher Rate | 40% | | £150,000+ | Additional Rate | 45% | \* The Personal Allowance goes down by £1 for every £2 that your [adjusted net income](https://www.gov.uk/adjusted-net-income#what-is-adjusted-net-income) is above £100,000. This means the personal allowance is Nil if the income is £125,140 or above. Net [miscellaneous income](/uk-tax-guide-for-individuals/cryptocurrency-tax/income-tax/miscellaneous-income.md) 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](/uk-tax-guide-for-individuals/cryptocurrency-tax/investor-or-trader.md) are required to pay income tax and national insurance on their profits, rather than capital gains tax on their capital gains. [Employment income](/uk-tax-guide-for-individuals/transaction-types/employment-income.md) received in cryptoassets is subject to income tax and national insurance and will most likely be paid via PAYE. {% embed url="" %} --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.recap.io/uk-tax-guide-for-individuals/cryptocurrency-tax/how-much-tax-will-i-pay.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.