Cryptoassets for Individuals: Who Qualifies and What You Get
Understand how your cryptocurrency transactions are taxed and learn the difference between income and capital gains tax.
This guidance helps you understand how the government treats your cryptocurrency activities for tax purposes.
Who it's for
This is for anyone who holds or trades cryptoassets.
What you get
You receive clarity on how your activity is categorized for tax. This helps you understand whether your transactions fall under Capital Gains Tax (tax on the profit from selling an asset) or Income Tax (tax on money earned from work or other sources).
What it costs you
To stay compliant, you must perform meticulous record-keeping. You will need to document every single transaction you make.
The catch to know
Many people assume all crypto activity is subject to capital gains tax, but staking rewards—which are rewards earned for participating in a network—are often treated as income instead.
How to apply
- Review your transaction history across all digital wallets and exchanges.
- Categorize your transactions into income or capital gains.
- Keep detailed records of the value of each asset at the time of the transaction.
- Consult the official portal for detailed guidance: https://www.gov.uk/hmrc-internal-manuals/cryptoassets-manual