Capital Gains Tax on Cryptoassets
What is Capital Gains Tax?
Capital Gains Tax (CGT) is a tax on the profit you make when you sell or give away an asset that has increased in value since you bought it. Cryptoassets, such as cryptocurrency and bitcoin, are subject to CGT in the UK.
How much CGT will I pay?
The amount of CGT you pay depends on your income tax rate. The current rates are:
- Basic rate: 10%
- Higher rate: 20%
- Additional rate: 28%
When do I have to pay CGT?
You have to pay CGT within 30 days of selling or giving away your cryptoassets.
How can I avoid paying CGT on cryptoassets?
There are a few ways to avoid paying CGT on cryptoassets, including:
- Holding your cryptoassets for more than 12 months before selling or giving them away.
- Selling or giving away less than the annual CGT allowance, which is currently £12,300.
- Using a tax-advantaged account, such as a Self-Invested Personal Pension (SIPP).
What if I have already sold or given away my cryptoassets and owe CGT?
If you have already sold or given away your cryptoassets and owe CGT, you need to report this to HMRC and pay the tax within 30 days. You can do this online or by post. For more information on CGT on cryptoassets, please visit the HMRC website.
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