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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
  • Investing in cryptoassets
  • Investing in cryptoasset derivatives
  • Non-UK Domiciled Individuals
  • In-depth guidance on Capital Gains Tax

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  1. CRYPTOCURRENCY TAX
  2. Which Taxes Apply?

Capital Gains Tax (CGT)

PreviousWhich Taxes Apply?NextIncome tax

Last updated 8 months ago

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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.

HMRC guidance confirms that disposals for CGT include:

Investing in cryptoasset derivatives

HMRC’s view of situs is not based on statute (the law) and there are opposing views on the situs of cryptoassets by well respected professionals and academics. However, if a UK resident non-dom claiming the remittance basis wishes to file their crypto taxes on the basis that their cryptoassets are non-UK based, they should consider disclosing this thoroughly on their UK tax return and anticipate an HMRC investigation to challenge the position.

The tax position regarding individuals trading and investing in derivatives over cryptoassets (ie Contract for Difference (CFD’s), Futures and Margin trading) is different to the tax position of an investor buying and selling cryptoassets.

See our detailed guidance on this.

Non-UK Domiciled Individuals

UK tax resident individuals who are non-domiciled in the UK need to consider their tax position very carefully regarding their cryptoasset activity. It is recommended professional tax advice is taken in this matter.

UK tax resident individuals who are not UK tax domiciled (known as 'Non-doms') potentially benefit from the remittance basis of taxation. Where the conditions are met and they make a remittance basis election, they are only chargeable to UK tax on their overseas income and gains, to the extent that they bring them into the UK. If the overseas income and gains remain overseas, they are outside the scope of UK tax.

HMRC set out in their guidance that cryptoassets are treated as located where the individual is tax resident. Therefore HMRC's view is that UK tax resident non-doms will be subject to UK tax on their cryptoasset income and gains, even where they are claiming the remittance basis.

Non-doms claiming the remittance basis have to be very careful not to bring their overseas income and gains into the UK. A consequence of HMRC's view is that a purchase of cryptoassets by a UK resident non-dom from their overseas income and gains will trigger a taxable remittance at that point.

In-depth guidance on Capital Gains Tax

In exceptional circumstances will a taxpayer be treated as a ‘ in cryptoassets. In which case these disposals are treated as business trading income, subject to income tax and national insurance.

HMRC refer individuals using derivatives to guidance in their , which is non-cryptoasset specific. Assuming the individual is not treated as a , the tax position is unclear. Profits or losses arising from derivatives will be either taxed under the capital gains regime or will be subject to income tax and treated as miscellaneous income.

The deemed location of an individual's cryptoassets for UK tax purposes (often referred to as Situs) is relevant when determining their capital gains tax position. See for HMRC guidance.

Selling cryptoassets for fiat
Exchanging one cryptoasset for another cryptoasset
Using cryptoassets to purchase goods or services
Giving away cryptoassets to others
Lending out your cryptoassets
Staking your cryptoassets
Adding and removing your cryptoassets to/from a liquidity pool
Depositing cryptoassets as collateral for a loan you take out
financial trader’
Corporate Finance Manual
financial trader
🔮Cryptoasset derivatives (CFDs, Futures and Margin Trading)
CRYPTO22600
Capital Gains Tax