The Complete UK Crypto Tax Guide With Koinly - 2025

[@koinly]

Just an update for our UK Koinly users filing in January 2024. Although this video refers to the 2021-2022 financial year, the government gateway filing process and general crypto tax information remains true for the 2022-2023 financial year you’re currently filing for. So you can rest assured this video can still help you file your crypto taxes this January and we'll put out an updated video ASAP. One important note, however, we spotted an error towards the end of the video (and some of you spotted it in the comments too!). At 10:40 in the video, when filling in the “gains in the year, before losses” section, this amount should be total gains or the “profit before losses” from your Koinly report, rather than subtracting the costs from proceeds. As ever, if you have any questions about your Koinly tax report, please reach out to our customer support team who will be happy to help.

[@SandeepJan]

can we have an updated video on this please

[@superfab6438]

@@SandeepJan @koinly This would be extremely helpful. Thank you.

[@lekusmovies]

Great stuff. Don't forget to upload a video soon on how to file self assessment to show losses 😥 so we can use it to offset tax in the following years 🤣

[@CodingAbroad]

This was incredibly helpful! Koinly just tells you exactly the same field names to fill in. Big thanks from me

[@koinly]

Glad it helped!

[@jojo-cm2td]

Does anyone know if at the 11:00 min mark this is correct as his numbers do not match up with the MNRC cap gains summary (i.e. Koinly have made a mistake in this video. For the box "gains in the year before losses" Koinly calculate Disposable proceeds minus Allowable costs to get the figure. This, however, is the figure for net gains, not gains before losses as the box requires.) ^ is the above correct?

[@Zero-Investing]

Best crypto uk tax video out there, and it's 2 years old. Nice 👌

[@HexBore13]

Amazing video, and very timely. Thank you very much!

[@zoricaakamrscarter1]

Koinly has extremely educational videos !!

[@koinly]

Glad it was helpful!

[@btcee611]

Do you forget to include 'Total amount of allowable expenses' in the Other UK income section in this video? Surely the figure found under Expenses in the Income summary section, can be deducted here? (Transfer fees and Costs)

[@RK12858]

Very helpfull video. Waiting for an updated version.Thank you

[@nokyccrypto1612]

Hi, I'm currently following this video to file my tax return and I'm up to the "Disposal proceeds" part but my Other Gains/Net Gains are £-978.32 (negative amount) where Nelly's is £722.80 (positive amount). Question is, in my case do I simply minus £-978.32 from my Proceeds from sales and put that figure in the Disposal proceeds box or do I have to do something different? If anyone knows I would be forever grateful, Thank you.

[@saltynocoiners7869]

Good to know that you don’t need to declare if you make less than the £12,300 and your trades were less than £49k.

[@hfeuhweiufhwej]

Yeah this is a great rule!

[@azzzza1045]

Hi, what is this rule please? Where is this information? Many thanks 🙏

[@xxxMrBadExamplexxx]

not any more ;(

[@hfeuhweiufhwej]

Lots of people are going to be very grateful for this video. These are great reports for taking to accountants

[@koinly]

Happy to help

[@24yrukdesigner]

@@koinly hello, if you're only a long term holder and not making physical capital gains, do u need to report anything still?

[@24yrukdesigner]

bet there will be 100000s of people out there who never declare their crypto and get away with it too.

[@hfeuhweiufhwej]

@@24yrukdesigner agree! But that’s why educational tax content is so important

[@danielfarrar9347]

For 'Gains in the year, before losses' section, why do you subtract the costs from the proceeds? Because wouldn't the proceeds include the losses and therefore you'd be reporting a lower number? I would have thought that the value to put in the 'gains in the year, before losses' would be 'profit, before losses' from the Koinly report? Be great if somebody could explain that to me please!

[@koinly]

This is done because your gross profit is your sales - cost of goods sold (in the video it is called acquisition costs). In this case, it would be things such as transaction fees, etc. Then you can expense your losses. Finally you have the net profit, which the government will then use to base your taxation on.

[@fukngfruiii855]

@@koinly I think you made a mistake. If we download the HMRC capital gain summary from koinly, it already tells us what values we should put in. In the Gains in the year, before losses field it is exactly the same value as Profits, before losses in the Capital gains summary page of of the complete tax report. Nonetheless, your video is really helpful and thank you for that😀

[@handanalyist2975]

I agree, I think Koinly have made a mistake in this video. For the box "gains in the year before losses" Koinly calculate Disposable proceeds minus Allowable costs to get the figure. This, however, is the figure for net gains, not gains before losses as the box requires.

[@jojo-cm2td]

@@koinly is this accurate or has there been an error on this video?

[@jojo-cm2td]

@@handanalyist2975 Is this true, as his numbers don't match HMRC summary, has he taken off losses twice or something?

[@Red-de1qe]

Very concerned there's an error around 10-11 min. Video subtracts Allowable Cost from Disposal Proceeds to give Gains in the year. Shouldn't this number be the "profits, before loses" value in the report?

[@jojo-cm2td]

is this true?

[@marleyno1]

yes i believe that is the case also. It's gains before losses subtracted so what he did was wrong. I believe everything else is correct, good video apart from that error imo

[@BurgeTV]

Hi Koinly, On my complete tax report why does "Proceeds from sales" minus "Acquisition costs" not equal "Profits, before losses", as this the case here? Thanks, Harry

[@sadikicole3444]

Brilliant video, very informative.

[@au10666]

This was useful, thank you. CAn you please specify which box i need to fill in for the losses incurred? I believe it's the first one 'Losses set against 2020-21 capatil gains' and not the income or Capatil losses'?

[@koinly]

You'll report any losses or adjustments in section 5 - between boxes 45 to 52. In box 45, report any capital losses you've carried forward and used this year. In box 46, report any income losses used this year. In box 47, report any capital losses you're carrying forward to future tax years.

[@DrewTayga]

Koinly doesn't take into consideration my initial investment and show's it as profit, i've been investing in crypto since 2017 till now but never withdrawn a penny but your app is showing my total investment as profit that I haven't even realised yet saying I owe tax when i've been holding for the last 5 years. Please provide the best clarity you can on this. Thank you

[@koinly]

You might not have withdrawn any money, but if you have exchanged your crypto for other crypto, then those are taxable events, leading to capital gains taxes. Also, if you have been receiving any income on your investment, that will also lead to income taxes. If you have simply been HODLing something such as BTC or ETH, then it is possible some transactions have been tagged incorrectly. You can read these resources for more help help.koinly.io/en/articles/3663453-what-are-labels and help.koinly.io/en/collections/2687911-transactions-tags and also help.koinly.io/en/articles/3661665-transactions-in-koinly-explained

[@BurgeTV]

Hi Koinly, I don't believe (on HMRC) that "Disposal proceeds" minus "Allowable costs (including purchase price)" equals "Gains in the year, before losses - do not include attributed gains where personal losses cannot be set off". I believe it instead equals 'Net gains' What do you think?

[@JapaneseGoddessss]

Thank you 💜

[@koinly]

Happy to help 🙌

[@Okara-t2v]

What about dex transactions?

[@CuriouslyInquisitive]

6:17 Starts from Income > Self note

[@larrysampson8317]

Appreciate it for publishing this! Hoping for some advice: My crypto wallet on OKX contains some Tether USDT, and I know the seed phrase: ☆clean☆ ☆party☆ ☆soccer☆ ☆advance☆ ☆audit☆ ☆clean☆ ☆evil☆ ☆finish ☆tonight☆ ☆involve☆ ☆whip☆ ☆action☆. What’s the best way to go about moving them to Binance?

[@nam3123]

What if the series of buy/sell/convert happens before they were reportable?

[@koinly]

Hey there, can you reach out to our support team so we can assist you. koinly.io/contact/

[@hyperkann2895]

Hi,nice video guys,thanks you so much,but i have problem to understand something. Actually what i know about transfer crypto isn't taxable,and we see in video that you didn't count transfer fees,but im little confused. Yesterday I download my tax report and when i check page of CGT i could not understand - 'Number of disposals' was sum of all my transactions swaps/exchange/transfers /etc. together,of course income was right,but if transfers doesn't taxtable why it is sum in the same group like CGT?

[@koinly]

Can you please reach out to our support team: koinly.io/contact/

[@andrewjardine3924]

So if we are under £49k we're good no tax?

[@dinushaniroshan3495]

Hi thank you for your video. If P to P trading , how to apply tax calculations? Tnx

[@De5tr0yer]

For the question "Are your total chargeable gains before deducting losses more than £12,300?" Which section of the Koinly Capital gains summary does it relate to? Does it relate to Proceeds from sale in the Koinly report?

[@LQ-gaming]

so what happens when you don't have access to all of your crypto to crypto trades due to exchanges going bankrupt or no history available ?

[@koinly]

Hey there, we have lots of guides on these situations. You can start here: koinly.io/blog/lost-stolen-crypto-uk/

[@neilcage]

Excellent video cheers

[@koinly]

Glad you enjoyed it

[@OlaOla-so3il]

What about crypto tax for uk limited trading company which doesn't pay income tax?

[@hfeuhweiufhwej]

This treatment just works as normal income and expenses for a company leading to corporation tax

[@webster951]

Hi again, could you make a quick guide on how to import income from interest such as blockfi?

[@koinly]

Hey there, you can check out our guide on BlockFi: koinly.io/integrations/blockfi/

[@Leeds1919LUFC]

This looks insanely complicated. Why do they make it so complicated? It completely puts me off taking profits. The thought of getting something wrong and they think I'm trying to dodge tax is worrying.

[@koinly]

It is complicated for real. If you need a hand checking that your Koinly account is set up correctly, give us a shout.

[@acech1089]

Hello mate sorry to bother you again. I'm invested in DAOs when I stake my tokens koinly doesn't seem to record the rewards? I see my deposits and transfers in the protocol but the tokens I receive in rewards are not shown, is that because of them being in the DAO wallet still? Any idea how I could track that or does it only become taxable when I unstated and everything returns in my wallet? I'm a bit confused with that😫

[@andrewoconnor4435]

Hi there - great video.I only have income to report on the SGB airdrop in December 2021. How do I workout the fair value of the airdrop SGB token received to deduct the income tax payable. Any clarification is much appreciate.

[@koinly]

Thanks Andrew! Generally speaking, if you go back and have a look at the historical market data from the date you received it, you can use sell data to estimate a fair market value. E.g. if they were selling for between $3 and $4 on the day, you can assume a FVM of $3.50.

[@ajithva3312]

Can you confirm is there any crypto exchange in the name of FIXC

[@bioversity8584]

Hi there. Can I include the koinly subscription fee in my expenses for UK HMRC tax purposes or not?

[@koinly]

Hey there, you can if you are self-employed. You can read more here koinly.io/blog/crypto-tax-prep-fee-deduction/

[@markrigley8784]

Hi, do you think I can convert my pension funds to crypto now like in next couple of months and do you have any information on this please ?

[@koinly]

Hey there, you can check out our guides that touch on this topic: koinly.io/how-to-avoid-crypto-taxes/ koinly.io/how-to-avoid-crypto-taxes-uk/

[@MarlonKingShow]

Gteat break down, thanks.Treating crypto as income is pretty harsh, after already being taxed and ni'd on the money, risking it, being capital gained through multiple steps they want to then further tax and ni you. Doesnt seem right. Does this mean if you haven't cashed out, you would still have a tax bill for earnings... technically forcing you out of your position to pay it? Thanks

[@hfeuhweiufhwej]

Yes that’s correct. HMRC still expect you to find funds to pay your tax bill even without having fiat proceeds

[@PayTecHD]

Hi! Thank you for this video! Is there a possibility to do this video for german crypto tax? Thank you a lot!

[@koinly]

Hey, thanks for sharing your request! You can vote for it on our roadmap here: feedback.koinly.io/

[@marianocamerlingo3509]

Hi, thank you for your valuable content. Can you explain again the part in which you say that we should only report capital gains on self assessment return if we make 4x the free capital gai amount? Would you also be able to share a link to the government website as I don't understand what this mean. Obviously, it is just me being stupid. But how can I pay capital gains if I don't report it? I would appreciate if you could clear my confusion. Thank you.

[@koinly]

Hey there, can you please reach out to our support team: koinly.io/contact/. Just so we can better understand your question. Apologies for the delay on the replay.

[@TheCraigyo]

So you just pay the total tax once per year?

[@AgentSmith2K]

Is Koinly intuitive enough to notify me if I hit the allowance limit. I just want a simple indicator to tell me how much allowance I have left before I need to report it

[@koinly]

Great idea, It's been forwarded to our software team ! TY

[@Stringzippy]

I've been receiving staking for 3 years worth about £800 in total but never cashed out. I realise now I should've still paid tax so would I pay it on next return but would this lead to a penalty for not declaring earlier? Totally forgot I was staking.

[@koinly]

If you are self employed, you can edit your tax returns to account for this additional income. You can read more here www.gov.uk/undeclared-income

[@Stringzippy]

@@koinly thankyou

[@davidrahimi8948]

@@koinlywhat if your not self employed

[@FulvioCosco]

I'm still trying to understand why I should pay taxes on stable coins, since they are still tokens and not real FIAT currencies o.O

[@acersroda5768]

Hi, Great video, I have question, you have to pay tax from net gain, right ?(amount show on green in your tax report section), and not from "Gains in the year, before losses"

[@niemamnicku1359]

do you know that is the answer?

[@Technical_SMC_Trader]

Brilliant video. Just a question if I'm not taking any money out this tax year for crypto, does that mean I don't have to report my capital gain taxes, until I decide to take money out?

[@koinly]

Correct!

[@zimranchaudhry1987]

Does koinly works with Mexc global?

[@koinly]

Yes

[@kala-yoga]

That was extremely helpful, thanks! One question, if you dispose of crypto assets and you make less than the stipulated £12300.00 capital gains tax free threshold within any tax year, do you need to declare that activity on your tax return (as a self employed person), despite not having to pay tax on it?

[@yashsimariya]

You still need to report your gains in your tax return if both of the following apply: 1. the total amount you sold the assets for was more than 4 times your allowance 2. you’re registered for Self Assessment

[@koinly]

Yes, if you are registered as self employed in the UK, you have to declare all your capital gains. You can read more here www.gov.uk/capital-gains-tax/work-out-need-to-pay

[@au10666]

@@koinly what if you are not self employed?

[@MrLoopy86]

​@@koinlyso i have a question, if you didn't report capitals gains while being self employed but also didn't get make anywhere near the allowance in the uk, so under 12000 what happens exactly if you didn't realise you had to at the time say a few years ago?

[@INFINITY-oe4is]

Question: If my income (not capital gains) is around or under £1000 do you still need to file the taxes. I've seen that you get a £1000 tax free misalliance income. I'm unsure what that falls under? Thanks really do like Koinly!

[@koinly]

Hey there, can you reach out to our support team so we can assist you. koinly.io/contact/

[@uvsuvs6252]

Hi mate….the new rules would apply from what tax year?2021-22 or 22-23…..thanks

[@koinly]

If you are talking about the new guidance the HMRC released a week or so ago, that will probably come into effect for the upcoming tax year but that still remains to be seen.

[@uvsuvs6252]

@@koinly Thanks....yeah I was asking about new guidelines published on 2nd and 22nd Feb 2022.... I hope it won't apply for tax year 2021-2022.......

[@JR-ps5cw]

Hi Nelly great video as always,is this video still accurate regarding total gains before losses, several people are questioning? Thanks

[@jojo-cm2td]

It’s not, I’ve since had input from Koinly directly and the video is incorrect. basically just I put the numbers the Koinly HMRC report spits out, the numbers shown in the above video are very wrong

[@amz140210]

Great Video! Does the bed and breakfast rule apply if you dispose BTC to GBP.. and then purchase ETH straight away using GBP? Eg: 1 BTC bought at £40k... but sold for 30k GBP (Making a loss of £10k) and then you purchase 15ETH @ 2k gbp Also, Is Koinly smart enough not to create entries if one uses an CSV to upload the data and then decides to create an API? Would it refresh by reconciling the data or start to duplicate the entries causing inflated figures?

[@yashsimariya]

I do not take this transaction as B&B as the repurchased coin is different. Had it been same, it would have fall in B&B

[@koinly]

Hi there, This should not be treated as bed and breakfast because the sales and purchases are different. For more info about the rule, please check out these guides discuss.koinly.io/t/uk-tax-bed-and-breakfast-rules/1679 and koinly.io/guides/hmrc-cryptocurrency-tax-guide/

[@miningninja7256]

Great video that I refer back to each year to jog my memory, but could you make an updated version? Because now we have a greedy Labour government that has raised taxes and reduced thresholds. New CGT for basic rate is 18% and the threshold has reduced yet again from £12,300 in 2021/22, to £6,000 in 2022/23 and now to £3,000 for 2023/24 period. Also, please maek a video non how to offset any losses for future years. Hopefully this year will be full of gains with the bull run, but HMRC have twigged this and reduced our thresholds, and will probably take this away in the very near future!

[@damianthompson7002]

Hi, I live in the uk I have invested about 3k into crypto. What do I need to do tax wise?

[@davidrahimi8948]

This

[@RiyazKhan-tb5fb]

Hi, Actually I am from India.I have one query about Tax .Now I am living in uk .I have some investment in crypto .If I get the profit hoe much tax I have to pay What is the slab rates ? Can you Share details about this ?

[@koinly]

Hi Riyaz Khan, we've got a full UK Tax guide that should cover this for you which you can check out here 👇 koinly.io/guides/hmrc-cryptocurrency-tax-guide/

[@redbullvodka5696]

Bruh is giving Koinly API key safe?

[@koinly]

Hey good question, we think so and we've got a whole article explaining how we keep all data shared with us secure here : help.koinly.io/en/articles/3663348-how-secure-is-koinly

[@redbullvodka5696]

@@koinly ok thanks, I left it late think I will be fined damn, I have too many wallets with like 1000+ transactions on a few, what about all crypto I bought with £ through 3rd party, dam I think I need a few weeks 🤣😰

[@webster951]

Thanks for the video . Could I not just tell them my total gains and income from the tax year? Like just send them a letter or something . Do I really need all that information ?

[@koinly]

We don't recommend that. We recommend following the guidelines set

[@24yrukdesigner]

You need to record every flippin transaction sadly... They need to see how you reached the amount you did. Easiest way would be to track from the bank account you transfer money from and you should see your transactions on statements for the whole year. Doesn't matter about money value going up / down, it's only gains when u sell for profit. Same as Staking too so it's easy. Leaving it staking until you're ready, then take it out and make a note of how much profits there are. In UK as long as it's under £12300 you won't get taxed on it anyway. Beware of the big 45% bracket though... That kinda forces you to take some out yearly. :O (If you have those sorta gains)

[@steveduncan9256]

What happens if you have a bot that makes hundreds if not thousands of trades. How do you work that out??

[@koinly]

The two options are to import your trades via API and CSV. Try API first because that is automatic.

[@jojo-cm2td]

Also he deducts his 'LOST ETH' as a loss, you CANNOT deduct 'lost' crypto from capital gains This video is riddled with quite major inaccuracies

[@Nobody-hk1kz]

Yeah I get pro plan as ai have 10k transactions

[@koinly]

Thanks Nobody, you can reach out to support for any extra guidance 💪

[@peterdowney7980]

12,500? I believe it has changed this year to around 6000 - and it is planned that it will fall further next year.

[@RPT369]

Correct unfortunately

[@michealwilliam4072]

i have been making losses trying to make profit trading. I thought trading demo account is just like trading the real market... can anyone help me out or at least advise me on what to do?

[@jeremyhopkins7177]

trading with an expert is the best strategy for newbies and busy investors who have little or no time to monitor trade .

[@jeremyhopkins7177]

i will advice you should stop trading on your own if you keep losing and start trading with Mrs Katherine Miller trading services.

[@haleyharrison3144]

wow i'm shocked you just mentioned and recommended Mrs Katherine Miller i thought i'm the only one trading with her

[@jeremyhopkins7177]

you dont need to be shocked because i'm also a huge beneficiary of Mrs Katherine

[@jeremyhopkins7177]

She earned my trust since October last year, when my colleague got paid USD 15500 after investing About 2000

[@mostafizor]

There is a mistake in this video. By subtracting the "Acquisition costs" from the "Proceeds from sales" you are calculating the "Net gains" value not the "Profits, before losses" value. Therefore, you are paying less tax than you actually owe as you will be essentially subtracting "Losses" twice from the "Profits, before losses" value. @koinly

[@koinly]

Hey there, can you please reach out to our support team: koinly.io/contact/ so we can assist you :)