Question 1

Do I have to calculate a separate cost and gain for every individual coin I ever bought?

Accepted Answer

No. HMRC requires tokens of the same type to be pooled under the Section 104 rule (TCGA92/S104): all your acquisitions of, say, bitcoin form a single pool with one running total of cost, and each disposal takes out a proportionate share of that pooled cost rather than being matched to one specific coin. Each token type gets its own pool, and NFTs are the exception — they're unique and are never pooled. (Sources: HMRC Cryptoassets Manual CRYPTO22200; HMRC Cryptoassets Manual CRYPTO22251.)

Question 2

If I swap one token for another, is that a taxable disposal, or does UK tax only apply when I cash out to pounds?

Accepted Answer

It's a taxable disposal either way. Exchanging one token for a different token counts as a disposal of the token given up and an acquisition of the token received, so it can affect two Section 104 pools at once and trigger a chargeable gain or loss on the token disposed of — even though no pounds sterling changed hands. (Sources: HMRC Cryptoassets Manual CRYPTO22257; HMRC Cryptoassets Manual CRYPTO20050.)

Question 3

What are the same-day rule and the 30-day rule, and why do they override the Section 104 pool?

Accepted Answer

They're anti-avoidance matching rules that run before pooling. If you buy and sell the same token type on the same day, those transactions are matched against each other first (same-day rule). Any leftover disposal is then matched against tokens of the same type bought within the following 30 days (the 30-day rule, sometimes called bed-and-breakfasting) before anything is drawn from or added to the Section 104 pool. (Sources: HMRC Cryptoassets Manual CRYPTO22200.)

Question 4

Do I owe tax on staking rewards when I receive them in the UK?

Accepted Answer

Usually yes, as income rather than as a capital gain. If your staking activity doesn't amount to a taxable trade, the pound sterling value of the tokens awarded is taxable as miscellaneous income at the time you receive them. If you keep those tokens afterward, you may also owe Capital Gains Tax when you later dispose of them. (Sources: HMRC Cryptoassets Manual CRYPTO21200.)

Question 5

Are airdropped tokens automatically taxed as income when they land in my wallet?

Accepted Answer

Not automatically. Income Tax may not apply to an airdrop received in a personal capacity if you got it without doing anything in return and not as part of a trade or mining business. But if the airdrop was provided in return for, or in expectation of, a service, it is taxable as miscellaneous income or trade receipts. Either way, disposing of the token later can trigger Capital Gains Tax. (Sources: HMRC Cryptoassets Manual CRYPTO21250.)

Question 6

What records does HMRC expect me to keep for my crypto transactions?

Accepted Answer

The onus is on you, not the exchange, since exchanges may only retain transaction data for a limited time or may stop operating entirely. HMRC expects records of the type of cryptoasset, the transaction date, whether it was a buy or a sell, the number of units, the value in pounds sterling at the time, and your cumulative pooled holding — plus supporting bank statements and wallet addresses. (Sources: HMRC Cryptoassets Manual CRYPTO10400.)

UK crypto gains use one pooled Section 104 cost, not a separate calculation per coin.