In 2026 you can make up to £3,000 in crypto capital gains tax-free, thanks to the annual exempt amount — plus separate allowances for crypto income. Here's exactly how much you can make before HMRC wants a cut, and the reporting threshold people miss.
Important Risk Warning
This is not financial advice. Cryptocurrency investments are highly volatile. The value of your investment can go down as well as up, and you could lose all the money you invest. Don't invest unless you're prepared to lose all the money you put in.
In the UK for the 2026 tax year, you can make up to £3,000 in total capital gains — from crypto and other assets combined — before capital gains tax applies, thanks to the annual exempt amount. Crypto income (like staking or being paid in crypto) is separate and falls under your income tax allowances instead. So there isn't one single "crypto allowance"; there are different thresholds depending on whether your crypto activity is a gain or income. Get this right and small investors often owe nothing — but you may still need to report.
The £3,000 figure is the one to burn into memory, because it's shrunk sharply in recent years and catches out people who remember when it was much higher.
Up to £3,000 of capital gains in the 2026 tax year, tax-free — but that allowance covers all your gains, not just crypto. The annual exempt amount means the first £3,000 of your total capital gains (crypto plus shares, property other than your home, and so on) is free of capital gains tax. Gains above that are taxed at 18% or 24%, depending on which income tax band they fall into.
Crucially, this is a gains allowance, not a "you can hold £3,000 of crypto" allowance — it's about profit, not the amount invested. If you bought crypto for £10,000 and sold for £12,500, your gain is £2,500, within the allowance, so no capital gains tax. Sell for £15,000 and your £5,000 gain uses the £3,000 allowance, leaving £2,000 taxable. Our capital gains guide and how to calculate gains guide show the workings.
Selling, swapping, spending, or gifting crypto (to anyone but your spouse) all count as disposals that use your allowance. This trips people up constantly — you don't have to cash out to pounds to trigger tax. The events that count:
So an active trader swapping between coins can rack up many disposals — and gains — without ever withdrawing a penny. All those gains count toward the same £3,000 allowance. Transfers between your own wallets, and gifts to your spouse, are not disposals.
Yes — crypto received as income (staking rewards, mining, being paid in crypto, some airdrops) falls under income tax and uses your personal allowance, not the £3,000 gains allowance. Your personal allowance (£12,570 for most people in 2026) covers income generally, and there are small separate allowances such as the trading allowance that can apply to some crypto activity. Crypto income is valued in pounds when received and added to your other income.
This is why the same coins can be taxed twice: once as income when you receive them (say, a staking reward), and again for capital gains when you later sell them at a profit. Our crypto income tax guide and staking guide cover it. The key point: don't assume your £3,000 gains allowance covers crypto you earned — that's a different pot of rules.
Sometimes yes — there's a reporting threshold separate from the tax threshold. Even if your gain is within the £3,000 allowance and no tax is due, you may still need to report disposals to HMRC if your total proceeds (the amount you sold for) exceed a reporting limit, or if you already file Self Assessment. And with exchanges now sharing data with HMRC under the CARF rules, it's wise to keep clean records regardless.
The safe approach: keep a record of every disposal, its proceeds, and its gain, so you can prove you were within the allowance if asked. If you're unsure whether you need to file, our how to file crypto Self Assessment guide and do you pay tax on crypto guide help — and for anything complex, an accountant is worth the fee. This isn't tax advice.
How much crypto profit is tax-free in the UK for 2026? Up to £3,000 of total capital gains is tax-free under the annual exempt amount, covering crypto and other assets combined. Gains above £3,000 are taxed at 18% or 24% depending on your income band. It's an allowance on profit, not on the amount you hold.
Is the £3,000 allowance just for crypto? No. The £3,000 annual exempt amount applies to all your capital gains together — crypto, shares, second properties, and more. If you have gains from other assets, they share the same £3,000 allowance, so it isn't a crypto-only figure.
Do I pay tax if I swap one crypto for another? Yes. Swapping crypto to crypto is a disposal at market value, even though no pounds change hands, and any gain counts toward your £3,000 allowance. Active traders can build up significant taxable gains this way without ever cashing out to sterling.
Is crypto income covered by the £3,000 allowance? No. Crypto income — staking, mining, being paid in crypto, some airdrops — falls under income tax and your personal allowance, not the capital gains allowance. The same coins can be taxed as income on receipt and for capital gains when later sold.
Do I need to report crypto if I'm under the allowance? Possibly. You may need to report if your total sale proceeds exceed a reporting threshold or you already file Self Assessment, even when no tax is due. Keep records of every disposal, especially now exchanges share data with HMRC.
Work out your total crypto gains for the tax year — proceeds minus pooled cost across every disposal, including swaps and spends — and check whether they exceed £3,000. If they don't, you likely owe no capital gains tax, but keep records anyway; if they do, plan for the tax and consider whether spreading disposals across tax years helps. Remember income is a separate pot. This isn't tax advice; for a complex position, see our reduce crypto tax guide and an accountant.
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