Calculate Capital Gains Tax (CGT) for UK investments and crypto
The UK's Capital Gains Tax (CGT) system applies to profits made from selling or disposing of assets including stocks, cryptocurrency, and property. HMRC has strict reporting requirements, and understanding these rules is essential for UK investors.
CGT rates depend on your total taxable income and the type of asset you're disposing of. The annual exempt amount (tax-free allowance) for 2024-25 is £3,000, significantly reduced from previous years.
HMRC treats cryptocurrency as an asset for CGT purposes. Every disposal of cryptocurrency is potentially subject to CGT, including trading one crypto for another, selling for fiat currency, or using crypto to purchase goods or services.
You must report capital gains on your Self Assessment tax return if your total disposals exceed £49,200 in the tax year, or if your gains (before deducting the annual exempt amount) exceed £3,000.
Several reliefs can reduce your CGT liability, including the annual exempt amount, losses from previous years, and specific reliefs for business assets.
HMRC requires detailed records of all investment transactions. For cryptocurrency, this includes the date of each transaction, the type of transaction, the amount in GBP, and the exchange rate used.
Warning: HMRC has increased enforcement of CGT compliance. Failure to report gains can result in penalties of up to 100% of the tax due, plus interest charges.
The annual exempt amount for 2024-25 is £3,000. This means you can make capital gains up to this amount without paying CGT. This is a significant reduction from £12,300 in previous years.
Yes, if your total crypto disposals exceed £49,200 in the tax year, or if your gains exceed £3,000, you must report them on your Self Assessment. HMRC is increasingly focusing on crypto compliance.
Failure to report capital gains can result in penalties of 100% of the tax due, plus interest charges. HMRC has access to data from exchanges and can identify unreported gains.
Yes, capital losses can be offset against capital gains in the same tax year. Unused losses can be carried forward indefinitely to offset future gains, but you must use them against the first available gains.
Yes, residential property has higher CGT rates (18%/28%) compared to other assets (10%/20%). The rate depends on whether you're a basic rate or higher/additional rate taxpayer.