Frequently Asked Questions

Yes. HMRC treats crypto as a capital asset, not a currency.

This means the following can all trigger Capital Gains Tax:

• Selling crypto for cash
• Swapping one cryptocurrency for another
• Using crypto to buy goods or services
• Gifting crypto (except to a spouse)

If your total gains in the year exceed the £3,000 annual exempt amount, you'll owe CGT at 18% or 24% depending on your income.

Some crypto activity — like staking rewards, mining income, and certain DeFi transactions — may be treated as income rather than capital gains and taxed differently.

HMRC requires you to keep records of every transaction. This falls under our £199 Advanced Tax Return.

If your side hustle income is over £1,000 in a tax year, yes — you'll need to declare it on a Self Assessment return.

The £1,000 Trading Allowance means you don't pay tax on the first £1,000 of self-employment or casual income, but once you exceed that you need to register and file.

It doesn't matter whether you're being paid in cash, through PayPal, via platforms like Etsy, Vinted, or Deliveroo, or in any other way — if it's income for a service or goods you're selling, it counts.

HMRC has been increasingly active in tracking income through digital platforms, so it's worth getting it right.

Yes, dividends are taxable above the annual Dividend Allowance, which is £500 for 2025/26.

Dividends within an ISA are always tax-free.

If your dividends exceed the allowance, the rate you pay depends on your income band:

• 8.75% for basic-rate taxpayers
• 33.75% for higher-rate taxpayers
• 39.35% for additional-rate taxpayers

Dividend income needs to be declared on your Self Assessment return. Your investment platform or company should provide a dividend certificate or statement showing what you received.

It depends on how much interest you received and what type of taxpayer you are.

For 2025/26, the Personal Savings Allowance is:

• £1,000 for basic-rate taxpayers
• £500 for higher-rate taxpayers
• Nothing for additional-rate taxpayers (income over £125,140)

Interest from ISAs is always tax-free and never needs to be declared.

If your savings interest exceeds your allowance, you'll need to declare the excess on your Self Assessment return. Banks report interest to HMRC automatically, so it's worth declaring it correctly even if you think the amount is small.

No longer. Since the October 2024 Budget, CGT rates were aligned across all asset types.

For 2025/26 the rates are 18% (basic rate) and 24% (higher rate) for property, shares, crypto, and other assets.

Previously, gains on shares attracted lower rates of 10% and 20%. This change means the tax treatment is now the same regardless of what you're selling.

Your CGT rate depends on your total income for the year, including the gain itself.

First, work out your total taxable income (salary, self-employment, rental, dividends) and subtract your Personal Allowance (£12,570 for most people). What's left is your taxable income.

Any remaining space in your basic-rate band (up to £37,700 of taxable income) gets taxed at 18%. Any gain that pushes you above that threshold is taxed at 24%.

For example: if your taxable income is £20,000 and you make a gain of £30,000, the first £17,700 of the gain falls in the basic-rate band at 18%, and the rest is taxed at 24%.

We calculate this precisely for every client.

For 2025/26, the CGT rates are:

• 18% on gains that fall within your basic-rate income tax band
• 24% on gains above it

These rates apply to all asset types including property, shares, and crypto — the previously lower rates for shares (10% and 20%) were aligned with property rates in the October 2024 Budget.

To work out your rate: add your total taxable gain to your total income for the year. The portion of the gain that falls within your remaining basic-rate band (up to £37,700 for most people) is taxed at 18%. Anything above that is taxed at 24%.

For 2025/26, the Annual Exempt Amount is £3,000 per person.

You can make gains up to this amount across all your assets in the tax year without paying any CGT.

If you own assets jointly, each person gets their own £3,000 allowance — so a couple selling a property together effectively has a combined £6,000 exempt amount.

Gains above the threshold are taxed at 18% (basic rate) or 24% (higher rate).

The allowance has fallen significantly in recent years (it was £12,300 in 2022/23), so even modest gains can now result in a tax liability.