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.

Capital Gains Tax applies when you sell or dispose of an asset that has increased in value. The main ones are:

• Residential property that isn't your main home (second homes, buy-to-lets, inherited property)
• Shares and investment funds held outside an ISA
• Cryptocurrency
• Business assets including goodwill
• Personal possessions worth more than £6,000, such as jewellery or art

Assets that are exempt include your main home (in most cases), anything held inside a Stocks and Shares ISA, your car, and UK government bonds (gilts).

The gain is calculated as the sale price minus the original purchase price and any allowable costs such as legal fees or improvements.

Usually not, if it was your main home for the entire time you owned it. Private Residence Relief (PRR) exempts the gain from CGT in that case, and you wouldn't normally need to report the sale to HMRC either.

However, CGT can apply — or PRR can be reduced — in these situations:

• You let the property out at any point during your ownership
• You used part of the property solely for business (not just occasional home working)
• The property wasn't your main home for the entire ownership period
• The garden or grounds are very large (over half a hectare)

In these cases, part of the gain may still be exempt, but you'll need to calculate how much.

If you're unsure whether your sale triggers a reporting requirement, message us on live chat.