Crypto tax in the United Kingdom (2026 to 2027)
Short answer
Spending crypto is a disposal for Capital Gains Tax. Above the £3,000 annual exempt amount, gains are taxed at 18% for basic rate taxpayers and 24% for higher and additional rate taxpayers.
Estimates based on the current tax year rules, not tax advice.
Worked example
You spend £10,000 of BTC that cost you £6,000.
| Gain | Estimated tax | |
|---|---|---|
| Gain | £4,000 | £240 |
Calculate your own case
Estimated tax on this spend (United Kingdom, 2026 to 2027 tax year)
£240
Gain of £4,000. Annual exempt amount (£3,000) used.
Estimate based on the current tax year rules, not tax advice.
- Amount spent£10,000
- Cost basis-£6,000
- Gain+£4,000
- ExemptionApplied
- Estimated tax£240
Cashback
No official guidance exists on crypto card cashback here, so the tool shows no figure.
- Basic-rate taxpayers pay 24% on any part of the gain that pushes total taxable income above the £37,700 basic rate band. This estimate applies the rate of the band you select to the whole gain.
- Rates and bands shown are for England, Wales and Northern Ireland. Scottish income tax bands differ, but Capital Gains Tax rates are UK-wide.
Keep a record of every card purchase
- Date
- Amount
- Asset
- Cost basis
- Merchant
- Exchange rate
Rules to know
- Basic-rate taxpayers pay 24% on any part of the gain that pushes total taxable income above the £37,700 basic rate band. This estimate applies the rate of the band you select to the whole gain.
- Rates and bands shown are for England, Wales and Northern Ireland. Scottish income tax bands differ, but Capital Gains Tax rates are UK-wide.
Is crypto card cashback taxed?
There is no official guidance on crypto card cashback yet. Keeping records of every reward is the safe approach.
Keep reading
Frequently asked questions
Is spending crypto with a card taxable in the United Kingdom?
Spending crypto is a disposal for Capital Gains Tax. Above the £3,000 annual exempt amount, gains are taxed at 18% for basic rate taxpayers and 24% for higher and additional rate taxpayers.
Is crypto cashback taxed in the United Kingdom?
There is no official guidance on crypto card cashback yet. Keeping records of every reward is the safe approach.
Sources
- GOV.UK: Capital Gains Tax rates · checked September 23, 2026
- GOV.UK: Capital Gains Tax allowances · checked September 23, 2026
- HMRC Cryptoassets Manual: CRYPTO22100 (disposals) · checked September 23, 2026
- GOV.UK: Income Tax rates and Personal Allowances · checked September 23, 2026