- HMRC does not treat crypto as money or currency. A company usually pays tax on crypto as a chargeable gain, unless it trades crypto or the intangible asset rules apply.
- Corporation tax is 19% on profits up to £50,000 and 25% on profits over £250,000, with marginal relief in between.
- VAT is due in the normal way on goods and services paid for in crypto. The token itself carries no VAT, and mining is generally outside the scope of VAT.
- A business that provides crypto services must be registered with the FCA today and authorized under the new regime from 25 October 2027.
This page covers UK companies that hold, accept or earn crypto. Individuals are on personal tax, and company deadlines on filing and deadlines. It is general information, not tax advice.
Crypto in the accounts
HMRC sets out how companies treat crypto in the corporate part of the Cryptoassets Manual (the CRYPTO40000 series). It does not consider cryptoassets to be money or currency, so the foreign currency rules do not apply. Which tax rules apply depends on what the company does with the tokens:
- Trading. HMRC expects a company to trade crypto “only in exceptional circumstances”. If it does, the profits and losses are part of its trading profits.
- Intangible fixed assets. These rules apply only if the token is an intangible asset in the accounts and held for use on a continuing basis. HMRC says exchange tokens that are simply held by the company will not meet this definition.
- Loan relationships. Exchange tokens do not create a loan relationship. A loan of money that is secured with tokens as collateral is one.
- Chargeable gains. If none of the above applies, a disposal of tokens gives a chargeable gain or loss, taxed as part of the company’s profits. Tokens are pooled in the same way as for individuals.
Planned change. Under the draft Finance Bill 2026-27, eligible stablecoins held by companies are to be treated as a money debt under the loan relationship rules from 1 April 2027. This is not yet law (October 2026); see personal tax for the measures for individuals.
Corporation tax rates
| Taxable profits (financial years 2025 and 2026) | Corporation tax rate |
|---|---|
| £50,000 or less (small profits rate) | 19% |
| Between £50,000 and £250,000 | 25%, reduced by marginal relief |
| Over £250,000 (main rate) | 25% |
The £50,000 and £250,000 limits are reduced for short accounting periods and shared between associated companies.
VAT on crypto
HMRC’s VAT guidance on cryptoassets (CRYPTO45000) says:
- Selling goods or services for crypto. “VAT is due in the normal way on any goods or services sold in exchange for cryptoasset exchange tokens.” The value is the pound sterling value of the tokens at the time of the transaction. No VAT is due on the supply of the token itself.
- Exchanging crypto. Exchanging tokens for pounds or other currencies, or the other way round, is an exempt financial service (Item 1, Group 5, Schedule 9 of the VAT Act 1994). HMRC refers to the EU Court of Justice ruling in Hedqvist (C-264/14), which reached the same result.
- Mining. Mining receipts are generally outside the scope of VAT, because there is no customer for the mining service. HMRC’s guidance does not deal separately with staking.
HMRC calls this treatment provisional, pending further developments.
If your business provides crypto services
Exchanging crypto for customers, running a crypto ATM or holding crypto for customers requires registration with the FCA under the Money Laundering Regulations today. From 25 October 2027 these activities need full FCA authorization; the application window runs from 30 September 2026 to 28 February 2027. The details are on regulation.
Since 1 January 2026, crypto service providers must also collect and verify user details and report users and transactions to HMRC every year under the Cryptoasset Reporting Framework (CARF), with the first report due by 31 May 2027. A provider can get a penalty of up to £300 per user for failures. What is reported is on filing and deadlines.
Sources
- HMRC: Cryptoassets Manual, CRYPTO41000 (companies) (last checked October 2026)
- HMRC: Cryptoassets Manual, CRYPTO41050 (which rules apply) (last checked October 2026)
- HMRC: Cryptoassets Manual, CRYPTO40150 (trading) (last checked October 2026)
- HMRC: Cryptoassets Manual, CRYPTO41100 (loan relationships) (last checked October 2026)
- HMRC: Cryptoassets Manual, CRYPTO41150 (intangible fixed assets) (last checked October 2026)
- HMRC: Cryptoassets Manual, CRYPTO45000 (VAT) (last checked October 2026)
- GOV.UK: Corporation Tax rates and reliefs (last checked October 2026)
- GOV.UK: Rates and allowances, corporation tax (last checked October 2026)
- GOV.UK: Taxation of stablecoins (policy paper, July 2026) (last checked October 2026)
- GOV.UK: Reporting cryptoasset user and transaction data (last checked October 2026)
- FCA: Cryptoassets, AML/CTF regime (last checked October 2026)
- FCA: How the cryptoasset application gateway will operate (last checked October 2026)
This page is general information, not tax advice. Rules and rates change, so check the official sources above before you act.