🇺🇸 USA · 🇬🇧 UK Guide

Crypto Capital Gains Tax: The Complete US & UK Guide (2026)

How disposals are taxed, what counts as a taxable event, and worked examples for both IRS and HMRC rules — with the exact numbers, not just the theory.

I'm a developer, not a tax professional. This guide is researched from primary sources (linked in each section) but hasn't been reviewed by a CPA. Verify against official guidance before filing.

In this guide

1. What triggers a crypto capital gains tax event?

Both the IRS and HMRC treat cryptocurrency as property, not currency. That single classification is why crypto capital gains tax feels more complicated than stock trading — nearly everything you do with the asset is a disposal event:

Key distinction

Buying with cash, transferring between your own wallets, and holding are not taxable events. Tax triggers only on disposal.

Source: IRS – Digital Assets · IRS FAQ

2. US (IRS): holding period decides your rate

Gains split into two buckets based on how long you held the asset.

Holding period	Classification	2026 tax rate
12 months or less	Short-term gain	10–37% (ordinary income)
More than 12 months	Long-term gain	0%, 15%, or 20%

Why this matters

Someone in the 24% bracket selling at 11 months pays 24% crypto capital gains tax. Waiting to 13 months drops it to 15% — a 9-point difference for 60 extra days.

NOTE

No "wash sale rule" applies to crypto in the US as of early 2026 — this could change, check current guidance.

Source: IRS Topic 409

3. UK (HMRC): flat rates + an allowance most forget

No long-term discount, but a flat two-rate system and an annual tax-free allowance.

Income band	CGT rate (2025/26 & 2026/27)
Basic Rate	18%
Higher / Additional Rate	24%

These rates increased after the UK’s Autumn Budget 2024 — older sources may still show 10%/20%.

The allowance nobody mentions

Every individual gets a £3,000 Annual Exempt Amount for 2025/26 and 2026/27 — tax-free, doesn't carry forward.

Easy to get wrong

HMRC requires Section 104 pooling — all identical tokens are averaged into one cost-basis pool.

Source: GOV.UK – CGT rates

4. Worked example: same trade, two countries

Buy 1 ETH at $2,000, sell 18 months later at $3,500 — a $1,500 gain.

USA — long-term, 15% bracket

Gain

$1,500

Rate

15%

Tax owed

$225

UK — Higher Rate, no other gains

Gain

£1,500

Allowance

−£1,500 (within £3,000)

Tax owed

£0

A crypto capital gains tax liability that’s real in the US can be fully tax-free in the UK under the allowance — but scale it to $15,000 and the UK Higher Rate payer owes £2,880 vs. the US long-term filer’s $2,250. The “cheaper” country flips with gain size.

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