Crypto CGT in the UK: Which Costs and Exchange Fees Count
Updated 17 October 2026
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Short answer: HMRC's Cryptoassets Manual says not all costs are deductible when working out a crypto gain. Under section 38 TCGA 1992, HMRC's view is that these are allowable: the sterling consideration originally paid, transaction fees paid to have the transaction included on the ledger, advertising for a buyer or seller, professional costs to draw up a contract, and costs of making a valuation or apportionment. Costs deducted against profits for Income Tax can't also be deducted for CGT.
Exchange fees (HMRC table, summarised)
| Situation | Treatment |
|---|---|
| Buy tokens with sterling or other fiat | Allowable as a cost of acquiring the tokens (s.38(1)(a)) |
| Sell tokens for sterling or other fiat | Allowable as an incidental cost of disposal (s.38(1)(c)) |
| Swap sterling into another fiat | s.38(1)(a), cost of acquiring that fiat |
| Swap other fiat into sterling | s.38(1)(c), incidental cost of disposing of that fiat |
| Deposit or withdraw sterling | Not allowable: sterling isn't a CGT asset |
| Deposit or withdraw other fiat | No acquisition or disposal to attach the cost to |
Swapping token A for token B
The fee relates to the whole transaction, so it is attributable to both assets: deductible when computing the disposal of A (s.38(1)(c)) and, later, the disposal of B (s.38(1)(a)). A sum can be deducted only once per disposal (s.52(1)), and the cost is apportioned on a just and reasonable basis. HMRC says a 50/50 split is accepted as reasonable; a different method is considered case by case.
Mining costs
Equipment and electricity don't count as costs of acquiring tokens for CGT (not "wholly and exclusively" to acquire them), though some may be deductible for Income Tax. Equipment may qualify for other reliefs on its own disposal (chattels or wasting assets). Whether mining is a trade changes the treatment: see the manual and crypto income.
Made-up example
Swap 1 ETH for tokens with a £20 fee. £10 is deducted against the ETH disposal; £10 is added to the cost of the new tokens for their future disposal (50/50 split).
Related
Same-day and 30-day rules · Self Assessment reporting
FAQ
Can I deduct a wallet or software subscription? Not listed by HMRC in the page read.
What if I pay the fee in tokens? See fees paid in tokens.
What we could not verify
Uncertain. These points were not confirmed on the pages read. A re-check of the GOV.UK CARF pages is planned for 1 December 2026.
- Whether items outside the HMRC list (wallet fees, software, tax-advice fees) are deductible.
- HMRC's view on the date the manual page was last updated (not shown).
- Treatment of DeFi, staking or lending costs (not covered here).
- The case-by-case alternatives to the 50/50 split in practice.
Sources (official)
- GOV.UK (HMRC), Cryptoassets Manual, CRYPTO22150: Capital Gains Tax: allowable expenses — https://www.gov.uk/hmrc-internal-manuals/cryptoassets-manual/crypto22150 (read in full 17 October 2026; the manual page shows no review date)
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