The UK's Most Accurate Crypto Tax Calculator
File your crypto taxes with confidence. Connect all your exchanges, calculate your gains, and generate HMRC-compliant reports in minutes.Try It FreeSample Report
Everything You Need for UK Crypto Tax Compliance
Powerful features designed specifically for UK taxpayersConnect All Your Crypto Platforms
Support for 500+ exchanges, wallets, and DeFi protocols
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Frequently Asked Questions
Support for 500+ exchanges, wallets, and DeFi protocolsWhat is the best crypto tax software for UK investors?
TaxFolio is the premier choice for UK investors, offering: Full compliance with HMRC regulations, including Bed and Breakfast and Same Day rules. Support for intricate transactions such as staking, DeFi, and NFTs. HMRC-compatible reports, including SA100 and SA108 forms. Seamless integration with leading accounting software like Xero and QuickBooks. With its intuitive design and automated tools, TaxFolio streamlines your crypto tax reporting, saving time and minimising errors. Try TaxFolio today to simplify your tax obligations!Can I claim tax relief for cryptocurrency losses in the UK?
Yes, HMRC permits UK investors to offset crypto-related capital losses against capital gains, lowering your tax liability. For instance, if you incur a £10,000 loss on Bitcoin but make a £20,000 gain on Ethereum within the same tax year, you’ll only be taxed on the net gain of £10,000. Any unused losses can be carried forward to offset future gains, as long as they’re reported to HMRC. To claim relief, record your losses in your Self Assessment tax return and keep detailed transaction records. TaxFolio simplifies this process by automatically calculating and applying eligible losses, helping you minimise your tax obligations effortlessly.Do I need crypto tax software for the UK?
Using crypto tax software is highly recommended for UK investors due to the intricate HMRC tax regulations. For instance: The Same Day Rule mandates grouping all crypto transactions on the same day to determine the average cost basis. The Bed and Breakfast Rule adjusts gains if crypto is sold and repurchased within 30 days. Manually navigating these rules can be complex and prone to mistakes. TaxFolio automates these calculations, ensuring HMRC compliance and generating accurate, HMRC-compatible reports for efficient tax filing. If you prefer manual calculations, check out our guide on How to Calculate Your Crypto Taxes in the UK.What types of transactions can TaxFolio handle?
TaxFolio supports a diverse array of cryptocurrency transactions, including:-
Trading: Purchasing and selling crypto on exchanges.
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Staking: Earnings from staking activities.
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Mining: Income generated from mining cryptocurrencies.
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Airdrops: Tokens acquired through promotional campaigns.
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NFTs: Transactions involving buying, selling, or holding non-fungible tokens.
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DeFi activities: Covering lending, borrowing, and liquidity pool participation.
TaxFolio accurately identifies taxable events, applies HMRC regulations, and calculates both income and capital gains for precise, compliant tax reporting.
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Do I need to report cryptocurrency held on overseas exchanges?
Yes, UK residents are required to report all worldwide crypto holdings, including assets on foreign exchanges. HMRC mandates:-
Comprehensive records: Document the market value in GBP for all crypto assets held.
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Tax on disposals: Gains from selling or trading crypto on international platforms are subject to UK tax regulations.
TaxFolio streamlines compliance by converting foreign transactions to GBP, applying HMRC rules, and ensuring accurate, complete reporting for your tax obligations.
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How do I calculate crypto taxes for airdrops and forks in the UK?
Airdrops and forks are taxed based on specific conditions:-
Airdrops: If received passively (without effort), they’re subject to Capital Gains Tax (CGT) upon disposal. If earned through activities (e.g., promotions), they’re treated as income at the time of receipt, with CGT applying when sold.
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Hard Forks: New assets from a fork are subject to CGT when disposed of, with the cost basis set at the market value of the forked tokens when received.
TaxFolio simplifies compliance by accurately tracking these events, applying HMRC guidelines, and generating clear reports to ensure your tax obligations are met seamlessly.
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Does TaxFolio track both income and capital gains taxes?
Yes, TaxFolio effectively tracks both Income Tax and Capital Gains Tax (CGT) for UK investors. It organises transactions by tax type:-
Income Tax: Covers earnings from staking, mining, or crypto payments, calculated using the market value at the time of receipt.
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CGT: Handles disposals, such as selling or trading crypto, using HMRC’s average cost basis method.
TaxFolio streamlines compliance by clearly distinguishing income and capital gains events, producing detailed, HMRC-ready reports that cover both tax liabilities for seamless inclusion in your tax return.
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What are the consequences of missing the UK crypto tax deadline?
The UK Self Assessment tax return deadline is 31 January after the tax year ends (e.g., 31 January 2026 for the 2024-2025 tax year). Missing this deadline can lead to penalties, even if no tax is owed. For example:-
Late filing penalties: £100 if up to 3 months late, with further daily penalties for extended delays.
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Late payment penalties: Interest accumulates from the due date, typically 31 January.
HMRC may impose stricter penalties for intentional non-compliance or underreporting. To avoid issues, maintain precise records and file promptly. TaxFolio helps by producing HMRC-compliant reports, reducing the risk of missed deadlines.
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How are staking rewards taxed in the UK?
HMRC classifies staking rewards as income, subject to Income Tax and, if operating as a business, potentially National Insurance contributions. The taxable amount is the market value in GBP when the rewards are received. For example, if you receive 0.1 ETH from staking when ETH is worth £1,500, the taxable income is £150. If you later sell these rewards, any profit above the initial value is subject to Capital Gains Tax. TaxFolio streamlines compliance by automatically distinguishing income and capital gains, ensuring precise reporting in line with HMRC regulations.How can I legally reduce my crypto taxes in the UK?
To minimise your crypto taxes while staying compliant with HMRC, consider these approaches:-
Leverage the CGT allowance: For the 2024-2025 tax year, the first £3,000 of capital gains are tax-free.
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Offset losses: Declare capital losses to lower your tax liability, with unused losses carried forward to future years.
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Strategic tax planning: Explore tax-loss harvesting by selling underperforming assets to offset gains, while being mindful of the Bed and Breakfast Rule to avoid issues with wash sales.
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Use crypto tax software: TaxFolio helps identify tax-saving opportunities, tracks losses, and optimises your CGT allowance, ensuring you minimise taxes while adhering to HMRC regulations.
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Can TaxFolio generate HMRC-compliant tax reports?
Yes, TaxFolio produces tax reports fully aligned with HMRC requirements, including:-
SA100 (Self Assessment Tax Return): Provides a clear summary of crypto income for seamless HMRC reporting.
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SA108 (Capital Gains Summary): Details disposals, including calculated gains or losses for each transaction.
These reports are designed for straightforward submission to HMRC, saving you time and minimising errors. With comprehensive transaction records and clear summaries, TaxFolio ensures a smooth and stress-free tax filing process.
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Can I use TaxFolio for previous tax years?
Yes, TaxFolio enables retroactive tax calculations for past tax years with a single subscription, allowing you to:-
Amend missed or incorrect filings.
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Accurately report gains and losses from prior transactions.
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Carry forward unused capital losses to reduce future tax liabilities.
TaxFolio ensures compliance with HMRC regulations specific to each tax year and generates tailored reports for easy submission. Whether catching up or correcting returns, TaxFolio makes the process straightforward and efficient.
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How does HMRC monitor cryptocurrency transactions?
HMRC employs several methods to track crypto activities, including:-
Exchange data: UK-based exchanges are required to provide user transaction details to HMRC.
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Blockchain analytics: Advanced tools analyse public blockchain transactions to identify activity.
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Global cooperation: HMRC collaborates with international tax authorities to access data on offshore crypto holdings.
Using TaxFolio ensures your transactions are accurately tracked and reported, reducing the risk of errors or penalties under HMRC scrutiny.
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Does TaxFolio support HMRC rules like Bed and Breakfast and Same Day?
Yes, TaxFolio is fully equipped to handle HMRC-specific regulations, including the Bed and Breakfast Rule and Same Day Rule:-
Same Day Rule: Automatically consolidates transactions occurring on the same day and calculates the adjusted cost basis.
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Bed and Breakfast Rule: Detects disposals and repurchases within 30 days, adjusting gains or losses to comply with HMRC guidelines.
TaxFolio’s automation minimises errors and produces HMRC-compliant tax reports, allowing you to generate detailed summaries quickly and efficiently for a hassle-free tax season.
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