Crypto tax software turns your exchange and wallet histories into the figures HMRC wants: gains, losses and income. In the UK that is harder than a simple profit calculation, because HMRC has specific matching rules, so the software has to apply those rules rather than just total what you paid and received.
How HMRC taxes crypto
HMRC treats cryptoassets as property, not as currency.
- Capital Gains Tax applies when you dispose of crypto: selling it, swapping one token for another, spending it, or gifting it
- The rates for 2026/27 are 18% within the basic-rate band and 24% above it, after the £3,000 annual exempt amount
- Income Tax usually applies to staking rewards, mining, lending returns and airdrops that require some action from you
- Losses can be carried forward if you report them
The matching rules your software must apply
- Same-day rule. Tokens you sell are matched first with tokens of the same type bought that day.
- 30-day rule. Next, they are matched with tokens bought in the following 30 days.
- Section 104 pool. Anything left is matched against a pool of that token at its average cost.
As a simple example, buy one coin for £1,000 and another for £2,000 and the pool holds two coins costing £3,000, an average of £1,500 each. Selling one for £2,500 gives a gain of £1,000. Software that uses first-in-first-out or the price of the latest purchase will get this wrong.
What to look for
| Check | Why it matters |
|---|---|
| UK reports | Output that maps to the Capital Gains pages of your Self Assessment return, not just a generic gains table |
| Your exchanges and wallets | Import by file or by connection for every platform you have used |
| Transfers between your own wallets | They shouldn't be treated as disposals |
| Staking, DeFi and NFTs | Correct classification as income or gains, with a clear audit trail |
| Fees | Properly included in costs and proceeds |
| Security | If you connect an exchange, use read-only keys |
| Pricing | Usually tiered by number of transactions, so check the tier for your history |
Reporting and deadlines
If your total gains are above £3,000, or your total disposal proceeds are above £50,000, in a tax year, you need to report on Self Assessment. The online deadline is 31 January after the tax year ends, and any tax is due by the same date. From 1 January 2026, UK cryptoasset service providers have to collect and report user data to HMRC under the OECD's reporting framework, and HMRC has been writing to people about unreported crypto, so keep complete records.
Software or accountant?
Software handles the calculation but doesn't decide how an unusual activity should be taxed. If you have significant DeFi activity, large gains or several years of unreported history, speak to an accountant who knows crypto. If you trade through a company, see our guide to small business accounting software with payroll.