Your Capital Gains Tax (CGT) from trading crypto depends on your total annual earnings, including salary and self-employed income. The amount of your crypto profit that is taxed at 10% or 20% is determined by this number.
For example, if your capital gains from crypto are £20,000 and your total annual earnings are £20,000:
Capital Gains Tax Breakdown:
You pay no CGT on the first £12,300 of your earnings, which is the tax-free yearly CGT allowance.
You pay tax on £7,700 of your capital gains at 10%, which is £770. For more information on CGT rates, check out our capital gains tax rates guide.
It's important to note that crypto profits are subject to CGT and should be reported to the relevant authorities. Seek the advice of a tax professional to ensure you're in compliance with all applicable tax laws.
*displayed rates are for informational purposes only and should not be considered as investment advice
