Bitcoin in the UK: rules, tax and how it's priced
In the UK bitcoin is quoted in pounds per 1 BTC (BTC/GBP), while small purchases are often shown as a fraction of a bitcoin or in satoshis (100 million sats = 1 BTC). The figures on this page are the international BTC/USD price converted at today's GBP/USD exchange rate, before exchange fees, spreads and any local premium.
Is bitcoin legal in the UK? Regulation
Buying, holding and selling bitcoin is legal in the UK, but it is not legal tender. Cryptoasset firms currently have to register with the Financial Conduct Authority (FCA) under the anti-money-laundering regulations, and crypto promotions to UK consumers must follow the FCA's financial promotion rules. A full authorisation regime is on the way: the FCA finalised its rules in June 2026, its authorisation gateway opened on 30 September 2026, and the new regime comes into force on 25 October 2027. Until then the FCA warns that crypto is high risk and that consumers are unlikely to be protected if something goes wrong. The FCA's ban on selling crypto derivatives to retail consumers remains in place.
How is bitcoin taxed in the UK?
For most individuals, profits on bitcoin are subject to Capital Gains Tax when you dispose of it: selling it for pounds, exchanging it for another cryptoasset, using it to pay for goods or services, or giving it away (except to a spouse, civil partner or charity). The first £3,000 of total gains in each tax year (6 April to 5 April) is tax-free. Above that, gains are taxed at 18% where they fall within the basic-rate band and 24% above it, the rates in force since 30 October 2024. Costs are averaged in a pool for each type of token, with special rules for tokens bought on the same day or within 30 days of a sale. Crypto received from mining, staking, lending or employment is taxed as income.
Buying bitcoin in the UK
UK residents generally buy bitcoin in pounds through cryptoasset firms registered with the FCA; the FCA register shows whether a firm is registered, and the FCA warns against dealing with unregistered firms. Since 8 October 2025 retail investors can also buy cryptoasset exchange traded notes (cETNs), provided they are traded on an FCA-recognised UK investment exchange. Since 1 January 2026, under the OECD Crypto-Asset Reporting Framework (CARF), UK crypto service providers must collect each user's name, address, date of birth, tax residence and National Insurance number or tax reference, and report their transactions to HMRC, with the first reports for 2026 due in 2027.
Crypto ETNs, ISAs and pensions
When the FCA reopened retail access to cETNs on 8 October 2025, HMRC allowed them in stocks and shares ISAs and in registered pension schemes. From 6 April 2026 cETNs were reclassified as qualifying investments for the Innovative Finance ISA instead. cETNs bought in a stocks and shares ISA before that date did not have to be sold and are treated as Innovative Finance ISA investments, and ISA managers need HMRC approval to offer cETNs in an Innovative Finance ISA. cETNs are not covered by the Financial Services Compensation Scheme (FSCS). Gains on cETNs held outside an ISA or pension are taxed under the normal rules.
Legal and tax information last reviewed October 2026. Crypto rules change quickly — check with the regulator or tax authority, or a qualified adviser, before acting. This is not tax, legal or investment advice.