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Are the rules about gifting crypto confusing? Many taxpayers worry whether moving Bitcoin or other cryptoassets to a friend, family member or charity creates a Capital Gains Tax (CGT) liability. This guide sets out the practical tests, worked examples, valuation rules, record templates and reporting steps relevant to gifting crypto in England under HMRC practice and 2026 updates.
Key takeaways: what to know in 1 minute
- Gifting crypto can be a disposal for CGT purposes unless a specific exemption applies. The disposal date is when legal ownership changes.
- Transfers between spouses and civil partners are usually exempt from CGT on gift, but later disposals may use the spouse's acquisition cost. Always document relationship status.
- Use the annual exempt amount (AEA) and other allowances to reduce or eliminate tax on gains from gifts. Plan gifts across tax years where sensible.
- Valuation must use market price at time of gift and records must show source, wallet addresses and timestamps. Screenshots and exchange records strengthen evidence.
- Gifts to registered charities generally escape CGT and may offer income tax relief for donors in certain circumstances; compliance and charity receipts are essential.
When is gifting Bitcoin a taxable event?
HMRC treats a gift of cryptoassets as a disposal for Capital Gains Tax unless a specific statutory exemption applies. The key test is whether ownership has passed and whether money or other consideration was received.
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A disposal occurs when an asset is sold, exchanged, transferred, given away, or lost. A gift is therefore normally a disposal because legal title is transferred without consideration. HMRC guidance on cryptoassets and disposals is available on the government website: HMRC: Tax on cryptoassets.
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The disposal date is the moment when legal ownership moves. For on-chain transfers, the block timestamp and transaction hash are strong evidence. For exchange-to-exchange transfers, the timestamp recorded by the exchange and withdrawal confirmations are necessary.
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No immediate income tax typically arises when gifting personal crypto (unless giving as part of employment or a trade). The principal liability is CGT on the difference between the donor's acquisition cost and the market value at the time of the gift.
Example: simple disposal calculation
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Bought 0.5 BTC in 2019 at £2,500 (cost basis). Gifted 0.5 BTC in 2026 when market price = £25,000. Disposal proceeds for CGT = market value at gift = £12,500. Gain = £12,500 - £2,500 = £10,000.
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If the donor's overall gains in the tax year fall under the AEA (£6,000 for 2025/26; verify current rate on HMRC website), only the excess is taxable.
How HMRC treats crypto gifts for CGT
HMRC applies standard CGT rules to crypto gifts with technical nuances specific to cryptoassets.
- Market value rule: For gifts to a connected person (non-arm's-length), the disposal is treated at market value rather than any nominal consideration. That is almost always relevant for gifts.
- Bed and breakfast and pooling: Cryptoassets are matched and pooled under the same matching rules as other assets: same-day, 30-day (for shares), and then section 104 pooling. For most privately held crypto held in the same wallet, use pooled cost methods to compute gain on disposal.
- Connected persons rule: Gifts to family members are treated as disposals to a connected person at market value at the time of transfer.
- Spouse exemption: Transfers between spouses and civil partners living together are generally on a no-gain/no-loss basis (exempt). That means the recipient takes the donor's base cost for future disposals.
Practical points when HMRC looks at a gift
- HMRC expects contemporaneous evidence: transaction hashes, wallet addresses, exchange statements, screenshots with timestamps and messages confirming the gift.
- Where market value is uncertain (illiquid token, NFT), provide independent price references — order books, recent trades, or expert valuation.
- If the donor later receives value back (e.g. an informal loan or benefit), HMRC may recharacterise the transaction.
Using annual gift allowances and spousal exemptions for gifting crypto tax
Planning gifts around allowances and exemptions reduces tax. The most relevant allowances and exemptions include:
- Annual exempt amount (AEA): Use the donor's tax year AEA to shelter gains from a gift. If the calculated gain on a gift is less than the AEA, no CGT is payable and no reporting is needed unless total gains and disposals exceed the reporting threshold.
- Spouse/civil partner transfers: Transfers between spouses/civil partners living together are exempt on transfer. The recipient inherits the donor's acquisition cost for later CGT calculations.
- Potentially exempt transfers (inheritance tax context): For lifetime gifts, there are separate Inheritance Tax (IHT) rules (seven-year rule). That is outside scope unless estate planning is relevant.
How to use allowances practically
- Aggregate gains across the tax year. If gifting multiple times in a year, aggregate the gains to see if the AEA covers them.
- Time gifts across tax years. Splitting gifts that produce gains across two tax years can use two AEAs.
- Consider spouse transfers first. If the spouse has lower income tax rates on later disposals, transferring an asset to them may yield lower total tax when they dispose.
Valuing Bitcoin gifts: market price and records
Valuation is pivotal for Gifting crypto tax because the disposal proceeds are the market value at the time of gift.
- Market price definition: The market price is the amount a willing buyer would pay a willing seller. For mainstream coins like Bitcoin and Ether, use a reputable exchange mid-market rate at the timestamp of transfer.
- For illiquid tokens or NFTs: Use the best available evidence — recent comparable sales, order book snapshots, or independent valuations.
Required records
HMRC requires accurate records for each disposal, including gifts. Keep at least:
- Date and time of transfer (UTC timestamp), transaction hash and blockchain explorer link.
- Wallet addresses of donor and recipient.
- Market price source used (exchange name, screenshot with timestamp and URL) and the calculated GBP value.
- Original acquisition details (date, price, fees) and any pooling calculations applied.
- Reason for transfer (gift, spouse transfer, charity donation) and, for charities, the charity name and registration number.
Example: record template (fields)
- Asset: Bitcoin (BTC)
- Quantity: 0.25 BTC
- Acquisition date: 2021-03-10
- Acquisition cost (GBP): £3,500
- Transfer date: 2026-02-14 12:34 UTC
- Transaction hash: 0xabc...
- Market price source: Exchange X mid-market £40,000/BTC (screenshot ref)
- Market value at transfer (GBP): £10,000
- Gain: £6,500
- Notes: Gift to sibling; no consideration received.
Reporting crypto gifts on your Self Assessment
If a gift creates a taxable gain after allowances, the donor must report the disposal on Self Assessment. Key reporting rules:
- When to report: If total taxable gains in the tax year exceed the AEA, or if disposals (including gifts) exceed the reporting threshold, the donor must include details on the Self Assessment return for that tax year.
- How to report: Report the disposal as a disposal of an asset with proceeds equal to market value at the date of gift. Show the acquisition cost, the gain, and any allowable losses or reliefs.
- Payment deadlines: Tax on chargeable gains is payable by 31 January following the end of the tax year (or sooner if the online payment deadline applies). Late reporting or payment can attract penalties.
Step-by-step reporting checklist
- Confirm whether the gift produced a chargeable gain after allowances.
- Collate supporting evidence (see valuation records above).
- Enter the disposal details on the 'Capital Gains' pages of the Self Assessment or use the HMRC 'capital gains summary' online service.
- Pay any CGT due by the normal deadlines and keep receipts.
Example calculation and reporting
- Donor's total gains (including the gift) in 2025/26 = £9,000.
- AEA = £6,000. Taxable gain = £3,000. Report on Self Assessment and pay CGT at 10% or 20% depending on total taxable income band.
Gifting crypto to charity: tax reliefs and compliance
Gifts of cryptoassets to a UK-registered charity usually escape CGT and may provide extra benefits to the donor.
- CGT treatment: A gift to a qualifying UK charity is generally exempt from CGT. The donor should use the market value at the time of the gift as the disposal proceeds but no tax arises because of the charitable exemption.
- Income tax relief: Where crypto is an allowable donation of chargeable assets, the donor may claim income tax relief on the market value subject to normal charitable donation rules (e.g. Gift Aid) if the charity is eligible and the donor meets conditions.
- Charity acceptance and compliance: Not all charities have procedures to accept crypto. Confirm the charity's ability to accept, obtain a formal receipt with date, value, and charity registration number. The charity should convert or custody the asset in an appropriate manner.
Practical steps for charity gifts
- Confirm the charity is a registered UK charity and willing to accept crypto.
- Agree the valuation method and obtain a written acknowledgement from the charity showing market value and date.
- Retain transfer evidence (transaction hash, wallet addresses) and the charity receipt for tax records.
Advantages, risks and common mistakes
✅ Benefits / when to apply
- Tax-efficient giving: Gifting crypto to a registered charity usually avoids CGT and may generate additional income tax relief.
- Use spouse exemption: Passing assets to a spouse before sale can defer or reduce tax.
- Annual planning: Using AEAs across years can eliminate CGT on modest gifts.
⚠️ Errors to avoid / risks
- Poor records: Failure to retain blockchain evidence, exchange screenshots and timestamps will weaken the position if HMRC queries the disposal.
- Incorrect valuation: Using stale or unsupported prices for illiquid tokens invites HMRC challenges.
- Ambiguous transfers: Sending crypto without proper documentation (e.g. to an exchange deposit that masks recipient ownership) can complicate establishing the disposal date.
Practical comparison: gift to spouse vs gift to non-spouse vs gift to charity
| Recipient |
CGT on transfer |
Reporting requirement |
| Spouse / civil partner |
No (no-gain/no-loss) — recipient takes donor cost |
Normally none for transfer, but recipient reports on later disposal |
| Non-spouse individual |
Yes, chargeable disposal at market value |
Donor reports if gains exceed AEA |
| Registered UK charity |
No CGT on donor (charitable exemption) |
Retain charity receipt; donor may claim income tax relief where applicable |
Gift flow: gifting Bitcoin in 6 steps
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Step 1 → Decide recipient and confirm acceptance
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Step 2 → Record timestamp and tx hash at transfer
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Step 3 → Capture market price screenshot
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Step 4 → Complete record template (costs, gain calc)
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Step 5 → Store evidence securely (offline copy)
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Step 6 → Report on Self Assessment if liable
Frequently asked questions
Is gifting crypto always a taxable disposal?
Not always — transfers to spouses/civil partners living together are usually on a no-gain/no-loss basis. Most other gifts are disposals for CGT at market value.
How should one value Bitcoin at the time of gift?
Use a reputable exchange mid-market rate at transfer time, record the source (exchange, screenshot) and show the GBP conversion used for CGT calculations.
Do gifts to UK charities attract CGT?
Gifts to qualifying UK charities are generally exempt from CGT; retain the charity's written acknowledgement showing date and value.
What records are required for HMRC if gifting crypto?
Keep transaction hash and explorer link, wallet addresses, exchange screenshots with timestamps, acquisition cost details and a signed note confirming the gift.
Will HMRC accept on-chain timestamps as proof of disposal date?
Yes. Block timestamps plus the transaction hash and explorer link are strong evidence of the disposal date and time.
What happens if the recipient later sells the gifted crypto?
The recipient will calculate any gain using the donor's cost if transfer was from spouse (no-gain/no-loss) or using their own acquisition cost (the market value at gift) if a non-spouse gift.
Your next step:
- Gather and save evidence for any planned crypto gift: transaction hashes, exchange screenshots, wallet addresses and acquisition costs.
- If in doubt about large-value gifts, seek formal tax advice and consider timing gifts across tax years to use AEAs efficiently.
- For charity gifts, confirm acceptance in writing and obtain a charity receipt showing date and market value.