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How much cryptocurrency tax do I owe?
How much cryptocurrency tax do I owe?

How do I calculate cryptocurrency tax owed? How much tax should I pay on bitcoin gains? What is the tax rate on cryptocurrencies in the UK?

Daniel Howitt avatar
Written by Daniel Howitt
Updated over a week ago

Disclaimer: This article is intended as an informative piece. This is not accounting or tax advice. Please speak to a qualified tax professional about your specific circumstances before acting upon any of the information in this article.

Calculating the amount of cryptocurrency capital gains tax you owe can be a very complex process. It involves evaluating not only all transactions made in the tax year you are calculating for, but also all previous transactions as you need to establish the cost basis you have for the assets your dispose of. If you are classified as a crypto financial trader, your calculations will be slightly different – see here to discover if you are a “financial trader” according to HMRC.

This involves accurately pricing cryptocurrencies and often other fiat currencies against each other at the time of disposal, accounting for HMRC’s bed and breakfasting and pooling rules and then ensuring you have not missed any transactions out.

Recap’s UK focused cryptocurrency tax calculator takes away the stress of doing all of these calculations manually. It also has a privacy focus via end-to-end encryption (similar to WhatsApp), meaning that your data remains in your hands.

Our desktop app allows you to connect to your exchange accounts, automatically draw your transaction data into the app and then calculate a tax report for any year which you have taxable disposals in. Our tax engine was built alongside chartered tax accountants in the UK and according to HMRC’s guidance.

Give it a try here and calculate whether you owe any tax on your cryptocurrency gains, or whether you are eligible to claim capital losses.

Need to sort out your crypto taxes? Use Recap, the privacy focused cryptocurrency accounting software to calculate the taxable gain or loss on your cryptocurrency investments!

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