Quick answer
HMRC's cryptoassets manual is the definitive UK reference — it determines how every crypto transaction is taxed.
Regulations
United Kingdom
HMRC Crypto Guidance
HMRC's official guidance treating crypto as a capital asset with unique pooling rules for UK taxpayers.
United KingdomUnderstanding HMRC Crypto Guidance on crypto
HMRC has issued detailed guidance on the tax treatment of cryptoassets through its Cryptoassets Manual and various policy papers. The guidance establishes that cryptocurrency is treated as a capital asset (not currency), subject to CGT on disposal using Section 104 pooling rules. It distinguishes between exchange tokens (Bitcoin, Ethereum), utility tokens, security tokens, and stablecoins. HMRC has also issued specific guidance on DeFi (2023), staking, mining, and employment-related tokens. The guidance is not legislation — it represents HMRC's interpretation — but it is the practical reference for UK crypto taxpayers and their advisors.
HMRC has issued detailed guidance on the tax treatment of cryptoassets through its Cryptoassets Manual and various policy papers. The guidance establishes that cryptocurrency is treated as a capital asset (not currency), subject to CGT on disposal using Section 104 pooling rules. It distinguishes between exchange tokens (Bitcoin, Ethereum), utility tokens, security tokens, and stablecoins. HMRC has also issued specific guidance on DeFi (2023), staking, mining, and employment-related tokens. The guidance is not legislation — it represents HMRC's interpretation — but it is the practical reference for UK crypto taxpayers and their advisors.
What this means for your crypto activity
Section 104 pooling
Section 104 pooling is mandatory — you cannot choose FIFO or HIFO as in the US.
Same-day and bed-and-breakfast rules
The same-day rule and 30-day bed-and-breakfasting rule take priority over the pool.
Staking rewards
Staking rewards are miscellaneous income unless conducted as a trade.
DeFi lending
DeFi lending may be a disposal if beneficial ownership of deposited assets transfers.
Stay current
HMRC's guidance is updated periodically — check the Cryptoassets Manual for the latest position.
- Section 104 pooling is mandatory — you cannot choose FIFO or HIFO as in the US.
- The same-day rule and 30-day bed-and-breakfasting rule take priority over the pool.
- Staking rewards are miscellaneous income unless conducted as a trade.
- DeFi lending may be a disposal if beneficial ownership of deposited assets transfers.
- HMRC's guidance is updated periodically — check the Cryptoassets Manual for the latest position.
Seeing it in action
Example scenario
Tom is a UK crypto investor who stakes ETH on Lido and provides liquidity on Uniswap. He checks HMRC's Cryptoassets Manual to determine: staking rewards are miscellaneous income (not trading income), the Uniswap deposit may be a disposal under the 2023 DeFi guidance, and all ETH disposals use Section 104 pooling. The manual is his primary reference for each tax decision.
How this works across jurisdictions
- United Kingdom
HMRC Cryptoassets Manual (CRYPTO) is the authoritative guidance reference; supplemented by HMRC DeFi guidance (2023) and staking/mining policy papers. Annual CGT allowance £3,000 for 2024–25.
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